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Drama at Housing Finance board room
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kenstat
#21 Posted : Thursday, April 22, 2010 2:53:36 AM
Rank: New-farer


Joined: 12/31/2009
Posts: 43
Location: Tundra
Sober wrote:
If this is happening with 25 percentage ownership, am trying to imagine if thex had fifty



Hodi,

At the end of the day, the board are just employees "hired" by shareholders. If the rest of the owners don't like this move, they can reelct the deposed directors. The votes count in the end.
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Gordon Gekko
#22 Posted : Thursday, April 22, 2010 5:55:30 AM
Rank: Elder


Joined: 5/27/2008
Posts: 3,760
Sober wrote:
If this is happening with 25 percentage ownership, am trying to imagine if thex had fifty


I seem to think that there is a rule that one cent own more than 25% of a financial institution???
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guru267
#23 Posted : Thursday, April 22, 2010 6:08:36 AM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
i have a very strong feeling that equity will buy this company because it sees great potential and it has the muscle to do so...

i'm looking to enter HFCK big time on serious speculation of profit recovery and potential takeover bids... but i'm not 100% sure about this move
Mark 12:29
Deuteronomy 4:16
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luxel
#24 Posted : Thursday, April 22, 2010 6:40:04 AM
Rank: Member


Joined: 7/17/2008
Posts: 152
@Vitu,
NSSF has invested heavily in HF and National bank (48%),infact they are represented in the board of the two companies.By removing Mr.mogere from the board of HF and replacing with Mr.Alex Kazongo (MD-NSSF), the board of NSSF will be arguing that one of our investment (National bank)is being privatised, why can't we be the strategic investor through HF? they will be doing this with the backing of Equity bank.This is what munga and mwangi had in mind but ofcourse implementing it is another story all together which will require a lot of politics.
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kiriita
#25 Posted : Thursday, April 22, 2010 9:01:07 AM
Rank: Member


Joined: 4/20/2008
Posts: 437
GG/Sober,

As per HF's 2009 Annual Report, Equity's shareholding is 24.9%. British American Investments holds 7.5% while British American Insurance has a 2.25% stake. That's circa 35% effectively controlled by one block - Equity's stake no doubt designed not to breach the 25% cap rule.

No other major shareholder comes close - NSSF has 6.83%, GoK 3.67%. Further, over 43% of the total shares are held by the public [over 31,000 shareholders] - from experience, it is very hard to get a significant proportion of these to vote as a block.

Barring politics therefore [and UK has already said GoK will not interfere unless the law is broken], the Equity/Britak axis has the clout to pretty much do as they wish, and I have a feeling more is coming.

My 2 cents.
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Kusadikika
#26 Posted : Thursday, April 22, 2010 4:09:00 PM
Rank: Elder


Joined: 7/22/2008
Posts: 2,703
There are basically 2 directors who call the shots at HF. Munga and Wairegi. These 2 can have things run any way they want and nobody else can do anything. All the others are just there to fill the spaces at the boardroom chairs so that the room does not look empty. It is business, shares speak. Its just the way it is.
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VituVingiSana
#27 Posted : Thursday, April 22, 2010 4:56:54 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,120
Location: Nairobi
luxel wrote:
@Vitu,
NSSF has invested heavily in HF and National bank (48%),infact they are represented in the board of the two companies.By removing Mr.mogere from the board of HF and replacing with Mr.Alex Kazongo (MD-NSSF), the board of NSSF will be arguing that one of our investment (National bank)is being privatised, why can't we be the strategic investor through HF? they will be doing this with the backing of Equity bank.This is what munga and mwangi had in mind but ofcourse implementing it is another story all together which will require a lot of politics.
I lost you on this. Please explain it to me again in steps...

NSSF holds only 6.83 in HFCK.
24.9% = Equity in HFCK?
9.75% = Britak+BAI in HFCK

So why would Equity co-operate with NSSF as far as HFCK is concerned?

I thought only 25% (max) of a bank can be owned by a single entity (unless the bank is a subsidiary like CFCStanbic Bank)... so how does HFCK buy into NBK?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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