http://www.businessdaily.../-/m951cfz/-/index.html

Extract....
“We have grown big over the years on our own but now we need to bring in a strategic foreign investor to further expand our business on the continent,” Jacob Segman, Kenol’s managing director, told an investor briefing Wednesday without giving details.
The oil marketer did not say whether its top shareholders will cede shares to accommodate the strategic investors or if it will create new shares to tap the high net worth shareholder.
Analysts say major shareholders are unlikely to sell off their stakes in the highly profitable company, arguing that the strategic investor could be accommodated by creating new shares or by going into a joint venture with Kenol.
“The company is undervalued and current shareholders can only sell their stakes by attaching a premium to the share price. A joint venture or creation of new shares is a more probable option,” said Eric Musau, an analyst at Standard Investment Bank.
...............If Kenol creates new shares to accommodate the targeted investors, it will follow the path taken by companies such as Equity Bank and ScanGroup that have benefited from new capital and expertise from strategic investors.

I will break it down to cases where the strategic investor gets 10%, 20% & 30% of kenol kobil by diluting current shareholder..

At 10% dilution
Kenol will have to add 165mn new shares bringing the EPS down to 2bob.. The shareholders will love this one because their wealth and control is maintained plus they get improvement in earnings from the Strategic investors advice..

At 20% dilution
Kenol will have to add 370mn shares bringing the EPS down to 1.75bob.. This move will be shunned by the market as it will probably lead to a fall in dividend and the risk is higher if the investor underperforms in his duties..
Although the share will still be cheap at 11.5

At 30% dilution
Kenol will have to add 650mn shares bringing EPS down to 1.5bob.. This will mean giving up a lot of control in the company to a stranger & DPS will fall to 60cents from 1bob ..
And yet even with 30% dilution the stock looks relatively CHEAP at 11.5

I agree Engen would be a better partner...they have a strong precense in most of this countries KK wan't to venture into.

i totally agree with you @Gekko.i dont understood why kenyan companies are all rushing to real estate for revenue growth.Does this mean that their businesses in those particular industries are fully mature.They should stick to their core business.Good companies and good managements stick to their main core business.

Williamson gave 50/- as Interim. I would be very happy to get that as the Final.

I don't have the info at my fingertips but there are many firms that have paid either:

1) Larger Interim divs vs final
2) Interim divs then no final