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KenGen’s Kes 141 Billion Rights Offer to Quadruple Shares in Issue
Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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Ericsson wrote:I was waiting for announcement concerning the rights issue.It's one month later and the CEO had said the program of the rights issue will be unveiled by the transaction advisors This thread is a record breaking discussion of a rights issue that won't happen, at least not in the near future 
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Rank: User Joined: 1/20/2014 Posts: 3,528
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whiteowl wrote:Ericsson wrote:I was waiting for announcement concerning the rights issue.It's one month later and the CEO had said the program of the rights issue will be unveiled by the transaction advisors This thread is a record breaking discussion of a rights issue that won't happen, at least not in the near future The talk has been on since mid 2013 Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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Othelo wrote:whiteowl wrote:Ericsson wrote:I was waiting for announcement concerning the rights issue.It's one month later and the CEO had said the program of the rights issue will be unveiled by the transaction advisors This thread is a record breaking discussion of a rights issue that won't happen, at least not in the near future The talk has been on since mid 2013 Who cares anymore? This is not a company that needed money or they are not serious The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: New-farer Joined: 10/19/2015 Posts: 21 Location: Everywhere
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If you note in their books for end year 2015, they are in the process of converting 20b from debt to equity. Most likely GOK loans. This means they are in the market to raise 28-30 billion. In my view, this will most likely happen through a 2:1 rights issue priced at about 8-9 bob. Bulk should be raised through debt as you've noted they have increased revaluation reserve significantly (50b+) so as to maintain healthy debt to equity. Get in the share if you know you'll fully take up rights.
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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@grahamdisciple Share link to their books we see Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: New-farer Joined: 9/23/2015 Posts: 12
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Are they likely to issue the rights in this first quarter? 
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Rank: New-farer Joined: 10/19/2015 Posts: 21 Location: Everywhere
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Ericsson wrote:@grahamdisciple
Share link to their books we see http://www.rich.co.ke/me...030th%20June%202015.pdf
See page 4, 20 bn debt awaiting conversion to equity and comprehensive income revaluation of 75b. In my view, they are all set for rights issue just a matter of perfect timing which unfortunately is being denied by the market.
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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grahamsdisciple wrote:Ericsson wrote:@grahamdisciple
Share link to their books we see http://www.rich.co.ke/me...030th%20June%202015.pdf
See page 4, 20 bn debt awaiting conversion to equity and comprehensive income revaluation of 75b. In my view, they are all set for rights issue just a matter of perfect timing which unfortunately is being denied by the market. After dilly dallying for 3 years.they'll be in for a rude shock if they try to feed the market with a Rights Issue now. Gava cleverly not spending cash. So it's up to you investors to fork out the 30bn. They should await the next bull run in 3 years to issue the rights it's too late now The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Chief Joined: 1/3/2007 Posts: 18,346 Location: Nairobi
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Aguytrying wrote:grahamsdisciple wrote:Ericsson wrote:@grahamdisciple
Share link to their books we see http://www.rich.co.ke/me...030th%20June%202015.pdf
See page 4, 20 bn debt awaiting conversion to equity and comprehensive income revaluation of 75b. In my view, they are all set for rights issue just a matter of perfect timing which unfortunately is being denied by the market. After dilly dallying for 3 years.they'll be in for a rude shock if they try to feed the market with a Rights Issue now. Gava cleverly not spending cash. So it's up to you investors to fork out the 30bn. They should await the next bull run in 3 years to issue the rights it's too late now KenGen needs the cash but a Rights Issue today will probably fail miserably if it relies on the Kenyan (except GoK) shareholders. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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VituVingiSana wrote:Aguytrying wrote:grahamsdisciple wrote:Ericsson wrote:@grahamdisciple
Share link to their books we see http://www.rich.co.ke/me...030th%20June%202015.pdf
See page 4, 20 bn debt awaiting conversion to equity and comprehensive income revaluation of 75b. In my view, they are all set for rights issue just a matter of perfect timing which unfortunately is being denied by the market. After dilly dallying for 3 years.they'll be in for a rude shock if they try to feed the market with a Rights Issue now. Gava cleverly not spending cash. So it's up to you investors to fork out the 30bn. They should await the next bull run in 3 years to issue the rights it's too late now KenGen needs the cash but a Rights Issue today will probably fail miserably if it relies on the Kenyan (except GoK) shareholders. Heavy dilution in a bear market will flop miserably. Ask KQ. Then you'll be forced to raise expensive debt from the commercial side. GoK is already facing cash pressure to fully take up their rights. This won't end well. $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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KenGen’s Kes 141 Billion Rights Offer to Quadruple Shares in Issue
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