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KenGen’s Kes 141 Billion Rights Offer to Quadruple Shares in Issue
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VituVingiSana
#171 Posted : Thursday, February 26, 2015 9:50:12 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
Ericsson wrote:
That is the same thinking that happened to Telkom Kenya.
The company is in a worst state now than it was in 2007.
There was chai/ugali/chicken in the deal. Look up Alcatraz. On the other hand look at Safaricom after Vodafone took control from KPTC.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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VituVingiSana
#172 Posted : Thursday, February 26, 2015 10:01:44 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
Ericsson wrote:
@sparkly
Nothing like a strategic investor from overseas.
Kenyans can become the strategic investors.For how long will we go to the west to come and solve problems which we can sort ourselves.
But anyway that is the condition of the African mind.
That's fine but not with GoK as the anchor shareholder where it can control or influence major decisions. I read that GDC is mired in corruption over the rigs.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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sparkly
#173 Posted : Thursday, February 26, 2015 11:42:56 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Ericsson wrote:
@sparkly
Nothing like a strategic investor from overseas.
Kenyans can become the strategic investors.For how long will we go to the west to come and solve problems which we can sort ourselves.
But anyway that is the condition of the African mind.


Kengen is already the biggest power producer in Kenya. Who would qualify to be the strategic investor... Kirubi, Merali, Transcentury, Total man?
Life is short. Live passionately.
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Ericsson
#174 Posted : Monday, March 02, 2015 4:49:28 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,808
Location: NAIROBI
In Friday's newspapers the company has put an advert for the following;
Expression of interest for provision of lead
sponsoring brokerage services for a rights issue
Expression of interest for provision of transaction advisory services for a rights issue.
Rights issue iko jikoni coming soon.
With the impressive half year results the number of shares to be issued in the rights issue will be scaled down to 4.4bn at a probabilistic price of 11.50 to raise the ksh.50bn
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Aguytrying
#175 Posted : Monday, March 02, 2015 6:12:59 PM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
Ericsson wrote:
In Friday's newspapers the company has put an advert for the following;
Expression of interest for provision of lead
sponsoring brokerage services for a rights issue
Expression of interest for provision of transaction advisory services for a rights issue.
Rights issue iko jikoni coming soon.
With the impressive half year results the number of shares to be issued in the rights issue will be scaled down to 4.4bn at a probabilistic price of 11.50 to raise the ksh.50bn


ha ha ha. these kengen guys are clever. good results spark the share price, raise the rights price.
but wait, what about the average trading price before cut off date? plus discount to it.
The investor's chief problem - and even his worst enemy - is likely to be himself
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guru267
#176 Posted : Tuesday, March 03, 2015 6:42:52 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
Aguytrying wrote:
Ericsson wrote:
In Friday's newspapers the company has put an advert for the following;
Expression of interest for provision of lead
sponsoring brokerage services for a rights issue
Expression of interest for provision of transaction advisory services for a rights issue.
Rights issue iko jikoni coming soon.
With the impressive half year results the number of shares to be issued in the rights issue will be scaled down to 4.4bn at a probabilistic price of 11.50 to raise the ksh.50bn


ha ha ha. these kengen guys are clever. good results spark the share price, raise the rights price.
but wait, what about the average trading price before cut off date? plus discount to it.


I think they should act fast because the hype of the half year results will fade fast and the jitters over dilution will return with force!

Furthermore due to the high dilution they need to offer rights at a deep discount!

That said 6.6Billion shares at 7.60 will be sufficient! Either way GOK has to contribute 35Billion....
Mark 12:29
Deuteronomy 4:16
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Ericsson
#177 Posted : Tuesday, March 03, 2015 7:49:42 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,808
Location: NAIROBI
@guru267
6.6bn at 7.60 I highly doubt;
KENGEN is looking at scaling down the number of shares to be issued to reduce the dilution and therefore price of the share post rights issue.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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MaichBlack
#178 Posted : Tuesday, March 03, 2015 8:10:14 AM
Rank: Elder

Joined: 7/22/2009
Posts: 7,840
Ericsson wrote:
@guru267
6.6bn at 7.60 I highly doubt;
KENGEN is looking at scaling down the number of shares to be issued to reduce the dilution and therefore price of the share post rights issue.

Even mama mboga knows that she can't simply increase the selling price for her cabbages so that she can sell less cabbages and still make the same money!!!

Wanjiku gave up on this share long time ago. The government must have got certain assurances in terms of number of rights and price before they gave their assurance to take up theirs. It surely was not a "We have a rights issue. Will you take up yours?". "Yes we will." kind of conversation. The other remaining investors (both institutional and individual) are also not your average Wanjiku. They will not simply take up the rights just because they are on offer. And any remaining Wanjiku will not have the appetite for the rights given the history she has had with the the share price. And finally, it is a HUGE rights issue. If they mess up, they will be left with their rights, not enough money and reduced confidence in the share.

Anything above 10/= will be a tough sell!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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mazingira
#179 Posted : Tuesday, March 03, 2015 10:29:49 AM
Rank: Member

Joined: 10/26/2012
Posts: 136
MaichBlack wrote:
Ericsson wrote:
@guru267
6.6bn at 7.60 I highly doubt;
KENGEN is looking at scaling down the number of shares to be issued to reduce the dilution and therefore price of the share post rights issue.

Even mama mboga knows that she can't simply increase the selling price for her cabbages so that she can sell less cabbages and still make the same money!!!

Wanjiku gave up on this share long time ago. The government must have got certain assurances in terms of number of rights and price before they gave their assurance to take up theirs. It surely was not a "We have a rights issue. Will you take up yours?". "Yes we will." kind of conversation. The other remaining investors (both institutional and individual) are also not your average Wanjiku. They will not simply take up the rights just because they are on offer. And any remaining Wanjiku will not have the appetite for the rights given the history she has had with the the share price. And finally, it is a HUGE rights issue. If they mess up, they will be left with their rights, not enough money and reduced confidence in the share.

Anything above 10/= will be a tough sell!


I agree i would not touch Kengen at anything over 10 Kshs.
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VituVingiSana
#180 Posted : Tuesday, March 03, 2015 10:40:43 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
Think of KQ which tried to go for a massive Rights Issue [and was plagued by poor performance]... and managed 14 of 21 billion even after roping in IFC in addition to GoK and KLM as anchors. Wanjiku didn't participate heavily.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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