obiero wrote:littledove wrote:obiero wrote:Ericsson wrote:obiero wrote:Spikes wrote:Ericsson wrote:obiero wrote:Ericsson wrote:Hii consolidation and split of shares is coming from where.
From the last information new shares were created and allocated to kq lenders and GOK conversion of debt to equity.The par value of kq shares wasn't adjusted.
The total issued shares of kq is now 5.82bn.
I will wait for tomorrow to see
I will not laugh, since the PJT Partners deal is indeed quite complex to understand.. Read more here
https://www.kenya-airway...the%20restructuring.pdf
23.28B shares after restructuring of the debt to equity at KES 2.13 per share were consolidated at a ratio of 1:4 to 5.82B shares, though existing shareholders are yet to defend their diluted stake via an Open Offer which was assured by the board to be at a price lower than that issued to GoK, KLM and KQ Lenders Co Ltd with the Open Offer expected to raise KES 1.5B automatically implying a ratio of 5 new shares at price of KES 1.8 i.e 813,160,565 new Open Offer shares.
I have read the article and its very straight forward and simple.No need trying to calculate complex stuff like 23.28bn shares at 2.13 then consolidation.
There will be no consolidation taking place post the 5.82bn shares.
@Obiero as it stands your shares should be 266,000 and not the 66,000 shares you are posting.
@ Ericsson are you expecting a rally tomorrow?
@ericsson has sworn KES 1.5 will print
Range of ksh.1.5-2.2
Tomorrow wazua finds out who amongst the elders remains solid in analysis.. Some are hinting at 1.5 others at 21.. I stick to 8.52 as the very minimum with possibility of reaching 12 or more as a high
if somebody bought 4000 shares at ksh 5 total cost = ksh 20000. If the shares are consolidated to 1000 then buying price will change to ksh 20 . That means if original shares were also consolidated 8.52 will be a massive loss for original shareholders. Eg those who bought at 4 will break even at ksh16, those who bought at 6 will break even at ksh 24 . This also means banks have a upper hand as they will break even at 8.52 and any price above that factoring in their interest they can start exiting if no lock in period.
You are the first one to observe the intricacy.. But you miss out the Open Offer details which makes KES 8.52 adequate since averaging down for the existing shareholders shall be at KES 1.8 per share
https://imgur.com/a/KcJXl
Further, few of the larger banks shall be willing to dispose on the spot due to the guarantee notes of KES 11B for KQ by GoK in future business, and even if they did, there shall be no large buyers of that scale, noting that both KLM and GoK are also not selling.. There shall be a vacuum, with next to zero sellers below KES 21 until the Open Offer circular is released
using the word consolidation incase of KQueer restructuring is committing first degree murder and thus why learning shall be hard for those still inside. Kichapo cha mbwa. Kqueer assets got impaired necessitating restructuring to avert statutory winding up legally pressed by aggrieved creditors. this was practically eminent as a result of negative equity and impaired assets as a result of nguzios and the croonies thieving and lopsided hotac deals that wiped out value for money for kqueer.
Our so kind and generous government pulled out a smart one in an electioneering period to avoid wanjikus backlash and found it favorable to cushion the wanjiku from the harsh reality of the risks of an ordinary shareholder. this was retaining 1/4qr of all allotted and paid up share in numbers and not for value (since technically kqueer already was an asset fully claimable by creditors without leaving anything for shareholders).
ILLUSTRATION WISE KQUEER TO ME LOOKS LIKE BELOW
WHEN KQ WAS DOING FINE
1share was equal to one ndondo held by and at KQueer by the managers
at that time each ndondo sold at 100/-
a shareholder with 4shares equivalent to 4 ndondos demanded 125/X4 or 500/- including good will to exit position held at kqueer since kqueer was a promissing kairu with potential to give birth to project mawingu calf
WHEN MAGGOTS STARTED INFESTING INTO KQUEER MANINJAS BRAINS(BAD DAYS)
So as the proverbial saying goes there happy seasons and crying seasons.(only that the seasons were orchestrated for yours the asking)
exactly,
after taking stock, for every four ndondos three were either stolen, rotten or eaten by aliens at kqueer.thus for sure there was no more need to talk about them and thus were to be removed from stock of ndondos held at Kqueer.
similarly, shareholders had to drop three shares for ever four shares held as the three represented hotair, nothing simply stated.
further the ndondos had manay owners these being creditors to the kampuni who let their money their.
after revaluation the creditors agree to take shares in kqueer attaching the value to the remaining quarter of the original ndondos, diluting further the claim made by original owners of the ndondos. the value of ndondos further has gone down after entrant of a more valued fruit(avocado) becoming into season. thus each ndondo can only fetch five bob and with alot of hyping
so, in conclusion, if each remaing ndondo is owned by four new owners and is trading at five bob, what will each owner claim after selling the single ndondo?
5/4 equals 1.25/-
what would be the potential paper loss for the original share holder for four held shares
4X125-1.25 equals????????
why cannot the original owner of the ndondos dictate the selling price of the ndondos?
the creditor has the upper hand since hewill take a propotionate of the ndondos to cover is investment in the company so represented by the proportion of shares allocated to the overall shares issued after restructuring.
Hii ndondo business is not for the faint hearted at little dove.
ya mungu ni mengi, ya obiero nayo....
,Behold, a sower went forth to sow;....