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Rank: Chief Joined: 1/3/2007 Posts: 18,265 Location: Nairobi
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                nairobby wrote:passiveinvestor wrote:Ebenyo wrote:Going by KQ latest audited numbers I wonder how Gok will pay shareholders kshs 8 per share.
 KQ assets-kshs 136,634,000,000
 
 kq debts-kshs 139,127,000,000
 
 kq shareholders funds-kshs (2,493,000,000)
 
 This means every KQ shareholder is holding a worthless share worth kshs -0.4
 Even the current market price of kshs 2 is indeed a premium.
 
 So how does Gok buy a company worth negative 0.4 per share for kshs 8 per share? or which metrics will be used?
 Gok will have to fork out kshs 45 billion to buy kq shareholders at kshs 8 per share.This will be a huge generous offe
 Thanks for asking a basic question that no-one has been able to answer.  With the new KES5Bn injection approved on Friday, 28th Feb and a weekend of silence, so no chance to trade, Shareholders will be wiped out on Monday.  Especially if it convertible debt with a strike price.  KQ is now a govt. parastatal.  If the banks are getting bought out at 8.25 there's a chance @obiero and his mates will also be bought out at the same price since all shares rank pari passu.  Wouldn't it be complicated to buy out different shareholders with the same class of shares at different price points? This is a gamble of a lifetime however, we'll be here to monitor some people's blood pressure       GoK could pay the banks off separately/later under the agreements they may have in place. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett |