Pesa Nane wrote:VituVingiSana wrote:Pesa Nane wrote:VituVingiSana wrote:guru267 wrote:VituVingiSana wrote:For those who know the farms [Changoi, Kapchorua, Tinderet & Kaimosi] do you think these can be sold off as a whole? Sub-divided and sold off? Price per acre in the area?
The book NAV is 750/share and that includes 300/- in cash [or near cash & receivables]
The largest liability is Deferred Taxation which only comes into play when the (revalued) assets are sold.
The board is unsure whether the company still owns the land its farms sit on given the new laws on foreign ownership of land.
Please show me where the board of the company has stated it is unsure whether it still owns the land its farms sit on given the new laws on foreign ownership of land?
Quoted from the Dividend Notice appended to the FY Results
Quote:The current very uncertain position concerning the Group's Land Titles as 99 year leases....
Yes, the 'Land Titles' as 99 year leases. It does not mean as @guru267 said "The board is unsure whether the company still owns the land its farms sit on given the new laws on foreign ownership of land."
@PesaNane - Does "The current very uncertain position concerning the Group's Land Titles as 99 year leases...." mean that WTK doesn't currently own [lease] the land?
Anyway, I will wait to see what @guru267's answer is.
They own the land. When they will loose it (lease) becomes the unknown. Did they really have to stress on the "VERY UNCERTAIN"?
Research is a wonderful thing!
There are 2 outcomes under the 'lease':
1) A 99-year lease from the date of the original lease [some time in the 1900s but this is likely to be AFTER Kenya became a Crown Colony in 1920.
[If this is the case, then WTK should sub-divide and sell the farms at the highest possible price before the politicians grab it. If I understand it, the incumbent or current user gets first crack at renewing the lease so the 99-year can be extended]
2) The date is effective from the date of the promulgation of the (new) Constitution. I would assume the landowners/lessors will push for an interpretation of the latter.
[If this is the case then the prospects in our lifetime look very good]
The constitution is poorly drafted in many sections. Look at the matter of the General Election & the constant back & forth as to what date they should be! This is another confusing area which could have been clarified from the start.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett