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Drama at Housing Finance board room
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muganda
#1 Posted : Wednesday, April 07, 2010 9:28:03 PM
Rank: Elder


Joined: 9/15/2006
Posts: 3,905
Chairman Kungu Gatabaki resigns on Tuesday in a huff and a puff due to pressure from directors representing Equity Bank and British American shareholders.

I consider this unwarranted intervention of shareholders in the operational affairs of a listed company as a blatant abuse of the fundamental principles of governance and borders on corporate impunity if not thuggery.

Noting that HFCK posted 73% growth in pre-tax profits, is this a problem of too much money?

http://www.standardmedia...d=2000007207&cid=14
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stock.enigma
#2 Posted : Thursday, April 08, 2010 7:20:59 AM
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Joined: 8/14/2009
Posts: 244
Good riddance. HF is underperforming and is high time new blood is injected to the board.
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Wa_ithaka
#3 Posted : Thursday, April 08, 2010 8:18:48 AM
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Joined: 1/7/2010
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Location: nbi
As far as I know, HFCK is not a subsidiary of Equity, hence its seems some form of thuggery was carried out to in effect give Equity a controlling influence...
Lakini, without Equity's money, I'm not sure HFCK would have turned round as quickly as it has...
The Governor of Nyeri - 2017
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Layman
#4 Posted : Thursday, April 08, 2010 9:33:03 AM
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Joined: 9/21/2006
Posts: 422
Location: Nairobi
muganda wrote:
Chairman Kungu Gatabaki resigns on Tuesday in a huff and a puff due to pressure from directors representing Equity Bank and British American shareholders.

I consider this unwarranted intervention of shareholders in the operational affairs of a listed company as a blatant abuse of the fundamental principles of governance and borders on corporate impunity if not thuggery.

Noting that HFCK posted 73% growth in pre-tax profits, is this a problem of too much money?

http://www.standardmedia...d=2000007207&cid=14


Such boardroom takeovers are rampant in private limited companies......
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QD
#5 Posted : Friday, April 09, 2010 6:36:58 AM
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Joined: 8/5/2009
Posts: 597
HFCK boardroom theatricals, how will it affect the stock price btw this Peter Munga vehement denials "No no no we are not known for that . we don't even have th muscle" an indication of something up his sleev.
The problem with the world is that the intelligent people are full of doubts while the stupid ones are full of confidence
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guru267
#6 Posted : Friday, April 09, 2010 6:48:48 AM
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Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
Layman wrote:
Such boardroom takeovers are rampant in private limited companies......


@layman but HFCK is a public limited company so i dont think its right for these things to happen as it is not good for the share price
Mark 12:29
Deuteronomy 4:16
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Pablo
#7 Posted : Friday, April 09, 2010 7:54:32 AM
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Joined: 3/17/2008
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Location: Nairobi
In all honesty HF board was underperforming while the investors were seeing the potential it has. Their profit increase was due to lower cost of funds not due to any new strategies.

Note its P/E ratio of 19 compared to average industry of 12, 58% more!!!! . Investors want to unlock this potential. IF it is JM who will do it so be it.
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Sober
#8 Posted : Friday, April 09, 2010 7:58:20 AM
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Joined: 11/27/2007
Posts: 3,604
If this is happening with 25 percentage ownership, am trying to imagine if thex had fifty
African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'
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mozenrat
#9 Posted : Friday, April 09, 2010 9:20:59 AM
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Joined: 5/18/2008
Posts: 796
I really don't see what the issue is... HF has been underperforming and the current (recently deposed) members of the board have not really been doing anything about it. As a shareholder of Equity (with a stake in HF) am happy that to see that Munga is grabbing the bull by the g*nads.

If they can come up with an Equity model for HF, fine! thats more money in my pocket.
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Jaina
#10 Posted : Friday, April 09, 2010 9:49:40 AM
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Joined: 5/13/2008
Posts: 558
Next will be the CEO, Unless of course if he had something to do with what happened in the Board. In most Cases, Boards implements strategies brought forth by the Management. If the Board fails to give approvals for drastic strategic actions, then the management is screwed.

I can read Frank Ireri's Hand in the whole issue. He wants to have in place a board that he can convince. The Nayser's in the Board had to leave and what a better way than use Equity and Britak's influence.
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mkonomtupu
#11 Posted : Friday, April 09, 2010 10:23:11 AM
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Joined: 2/10/2010
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Location: River Road
Mixing the old and the new, i had a hunch when i exited this counter in 2006 that the chemistry would not last. Frank Ireri has really played Gatabaki. Plucked from BBK to head a moribund HF and now Adan Mohammed wants to replace Naftali Mogere. Very interesting!
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Gordon Gekko
#12 Posted : Friday, April 09, 2010 1:02:02 PM
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Joined: 5/27/2008
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Adan cant replace Mogere. As far as I know Mogere was there on behalf of NSSF, so NSSF is still entitled to the seat. Unless NSSF nominate Adan...
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pkibathi
#13 Posted : Friday, April 09, 2010 1:05:54 PM
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Joined: 1/20/2010
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Location: Bermuda
Gordon Gekko wrote:
Adan cant replace Mogere. As far as I know Mogere was there on behalf of NSSF, so NSSF is still entitled to the seat. Unless NSSF nominate Adan...


I think Adan is the Chairman of the NSSF Board of Trustees??
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Gordon Gekko
#14 Posted : Friday, April 09, 2010 1:12:54 PM
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There is Adan 'Barclays' Mohamed and Adan 'NSSF' Mohamed. Which Adan are you referring to?
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mkonomtupu
#15 Posted : Friday, April 09, 2010 2:33:36 PM
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Joined: 2/10/2010
Posts: 1,001
Location: River Road
Adan Mohammed NSSF, why did NSSF choose him and not the managing trustee or did he nominate himself?
HF needs independent directors who are not there to cater to the shareholder interests. Remember what happened to Uchumi when one director bulldozed the entire board. The intrigue is not good for a listed company.
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VituVingiSana
#16 Posted : Sunday, April 11, 2010 9:04:52 PM
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Joined: 1/3/2007
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Equity shud just buy the remainder 75% of HF... and do things its way...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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smano
#17 Posted : Monday, April 12, 2010 8:32:51 AM
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Joined: 12/13/2006
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I would do the same if I injected the very much required capital that HF had sought for quite sometime...
BEER IS LIVING PROOF THAT GOD LOVES US AND WANTS US TO BE HAPPY!
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2012
#18 Posted : Wednesday, April 21, 2010 10:36:31 AM
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Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
Looks like the boardroom war outcome was taken positively by investors. The counter is heading north. Have their books closed?

BBI will solve it :)
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luxel
#19 Posted : Wednesday, April 21, 2010 2:18:53 PM
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Joined: 7/17/2008
Posts: 152
Thats true. It has now emerged that equity wants to use HF as a short cut to buying National bank through NSSF, this can only be interpreted as good news. Investors wouldnt care much who is moved from the board for as long as the company performs.
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VituVingiSana
#20 Posted : Wednesday, April 21, 2010 7:13:37 PM
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Joined: 1/3/2007
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@luxel - Please explain how buying HFCK helps Equity buy NBK?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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