obiero wrote:sparkly wrote:Spikes wrote:ProverB wrote:Shak wrote:Ericsson wrote:http://kenyanwallstreet.com/kenya-airways-gets-govt-approval-seek-sh-77-billion-syndicated-loan
According to Citizen TV, Kenya’s cabinet has approved a proposal by Kenya Airways (KQ) to seek a syndicated loan of Sh77 billion from US Based Export-Import Bank and a group of local banks.
Citizen TV reports that the cabinet met last week and gave the go ahead with assurance that it would act as the airline’s guarantor. In the proposal, KQ will seek Sh54 billion from the export-import bank of the United States while the balance of Sh 23 Billion will be given by a few local banks.
The media house further reported that the Cabinet had also “approved the conversion of its Sh4.2 billion current loan to KQ to be converted into equity, a move that would likely see an increase in its shareholding going forward.”
The loan request by the airline is however expected to go through a final approval by the national assembly in the interest of tax-payers whereby the Government owns 29.8 percent.
So is the Rights issue on course or is this a case of fake news?
They need all the money they can get and at the same time, they cannot keep being bridled by financial costs.
So begs the question...what is the cheapest source of long term financing?
Rights Issue..as a matter of prudence..is very much on the table
Issue is, public perception..rights issue might flop horribly.
What of issuing commercial paper on NSE, or even cross listed?
Oh the crap of this counter.
Rights issue wouldn't flop as we've reliable minds at the top of leadership! At least over 80% subscription can be possibly achieved. The 20% untaken rights can be bought later on by international or local institutional inventors. There is so much hope in this stock for now but a rally will take a year or so to start.
@Spikes how many shares do you have in KQ? You sound too hopeful.
Please avoid entertaining the clown.. He says KQ is dying in one post and then praises it to high heaven in another post.. Watermelonic. Fact is that a dilution is coming whether by rights issue, bond or debt conversion.. The least impact would be to convert existing debts to equity and the company confirms today via no less than its Chairman, that its the chosen path. Good times ahead! As for the false claim of oversupply upon rally, less than 15% of KQ shares are freely traded at the NSE.. No more than 2m shares have ever been traded in a single trading day for the last few years. The deluge from Mike Macharia, Chris Kirubi and company will only come at KES 14 or more as the kahoonas mistakenly or otherwise, defended the past rights at that price. Thank me later
Thanking @Obiero since 2012
Whereas I may have missed out on this rally, I don't really care. While the economy slows down, I prefer the firms which are not turnaround stories and could do very well once the elections are over and done with.
KK - We will need fuel no matter what.
KenRe - Folks will run to buy political cover. I hope there is no PEV so KenRe can book the premiums as profits!
Unga - 2016-17 is an awful year for Unga but 2017-18 seems promising. Maize imports have been allowed and wheat import restrictions may be loosened. And we have to eat!
I&M - Not a great (but profitable) 1Q as I&M digests Giro Bank as well as dealing with interest rate caps. (Good) Banks being banks will adjust and do well in FY 2018.
DTB - Increased my stake. Why? Huge jump in the Balance Sheet. Positioned for 2018.
Equity - Huge jump in the Balance Sheet. Positioned for 2018.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett