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KCB 2018 and Beyond
Rank: Veteran Joined: 6/2/2010 Posts: 1,089
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sparkly wrote:watesh wrote:My 2 cents wrote:obiero wrote:Ericsson wrote:DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC I have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move. In terms of price, they were always going to pay a premium as compared to what Equity paid. Equity had the benefit of the pandemic jitters sweetening the deal. TMB was the best they could get in that market, the only better option is Rawbank. TMB offers a good starting ground in terms of reach all over the country, good tech in place, solid mass market customer base of almost 3 million accounts (Equity BCDC 1.2m) and a 10% market share (3rd in the market). In the short term, it will be very expensive (acquisition + capital injection) but if things remain peaceful in DRC, there is proper money to be made. Purchase at 1.49 of Book Value seems abit pricey when Kenyan banks are trading at 0.6 book value. My concern seems to have a basis. KCB is making these acquisitions at exorbitant pricing. Who benefits? Meanwhile ABSA has also been coming up with projects to spend billions. In 2019/2020 - More than 1.5B for Branding! Latest in pipeline - 2B for new sofware 
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Rank: Member Joined: 9/14/2011 Posts: 869 Location: nairobi
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My 2 cents wrote:sparkly wrote:watesh wrote:My 2 cents wrote:obiero wrote:Ericsson wrote:DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC I have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move. In terms of price, they were always going to pay a premium as compared to what Equity paid. Equity had the benefit of the pandemic jitters sweetening the deal. TMB was the best they could get in that market, the only better option is Rawbank. TMB offers a good starting ground in terms of reach all over the country, good tech in place, solid mass market customer base of almost 3 million accounts (Equity BCDC 1.2m) and a 10% market share (3rd in the market). In the short term, it will be very expensive (acquisition + capital injection) but if things remain peaceful in DRC, there is proper money to be made. Purchase at 1.49 of Book Value seems abit pricey when Kenyan banks are trading at 0.6 book value. My concern seems to have a basis. KCB is making these acquisitions at exorbitant pricing. Who benefits? Meanwhile ABSA has also been coming up with projects to spend billions. In 2019/2020 - More than 1.5B for Branding! Latest in pipeline - 2B for new sofware 3.5B procurement deals in quick succession.
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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obiero wrote:Ericsson wrote:DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC And TMB becomes the second largest subsidiary in the KCB Group family Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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My 2 cents wrote:obiero wrote:Ericsson wrote:DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC I mixed have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move. It's a good move,time will reveal. The elections overhang is what is keeping share prices depressed. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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My 2 cents wrote:obiero wrote:Ericsson wrote:DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC I mixed have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move. Share price dropping below ksh.40 is over for now Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
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Ericsson wrote:My 2 cents wrote:obiero wrote:Ericsson wrote:DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC I mixed have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move. Share price dropping below ksh.40 is over for now Possibly touching KES 50 is the new reality
KQ ABP 4.26
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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obiero wrote:Ericsson wrote:My 2 cents wrote:obiero wrote:Ericsson wrote:DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC I mixed have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move. Share price dropping below ksh.40 is over for now Possibly touching KES 50 is the new reality Let's see if it will breakthrough the ksh.43 resistance level and hit 45 Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
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Ericsson wrote:obiero wrote:Ericsson wrote:My 2 cents wrote:obiero wrote:Ericsson wrote:DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC I mixed have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move. Share price dropping below ksh.40 is over for now Possibly touching KES 50 is the new reality Let's see if it will breakthrough the ksh.43 resistance level and hit 45 On Friday KES 42.5 printed, so KES 43 is a given.. Let's see how tomorrow plays out coz H2 announcement Thursday next week should further energize it
KQ ABP 4.26
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Rank: Veteran Joined: 6/2/2010 Posts: 1,089
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obiero wrote:Ericsson wrote:obiero wrote:Ericsson wrote:My 2 cents wrote:obiero wrote:Ericsson wrote:DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC I mixed have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move. Share price dropping below ksh.40 is over for now Possibly touching KES 50 is the new reality Let's see if it will breakthrough the ksh.43 resistance level and hit 45 On Friday KES 42.5 printed, so KES 43 is a given.. Let's see how tomorrow plays out coz H2 announcement Thursday next week should further energize it Especially if they pay an interim of 1.5 Am still holding out for that 50 cent that they withheld at full year whilst all other tier ones went back to pre-covid dividend levels.
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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obiero wrote:Ericsson wrote:obiero wrote:Ericsson wrote:My 2 cents wrote:obiero wrote:Ericsson wrote:DRC acquisition and entry has gone quiet.
Are they finding challenges or developed cold feet TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC I mixed have feelings about this acquisition. Don't know whether it is just a money grab by insiders, whether the investment makes sense and whether it has been made at a competitive price. Share price is also not excited by the move. Share price dropping below ksh.40 is over for now Possibly touching KES 50 is the new reality Let's see if it will breakthrough the ksh.43 resistance level and hit 45 On Friday KES 42.5 printed, so KES 43 is a given.. Let's see how tomorrow plays out coz H2 announcement Thursday next week should further energize it A high of 44 printed,it closed the day at lower end of 42 Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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