Does anyone out there know what effect the cancellation of RVR contract will affect the financial position of Centum as it is part of the RVR shareholding?

I understand they've been unwinding their KCB position at 30+ big time; they'd entered at less than 3bob - I know since we moved into KCB at the same time around 2002,but I made a big mistake when I exit long ago. Poor me. So they're headed for a phenomenal profit growth in Mar/2009 (maybe even beat Eqty). But what next for the Centum - the quamire in RVR will drain their cash - investing in transport MATATU,RAILWAYS,AIRLINE is a risky business. Just my view...

Hey...Somebody might make a killing out of me...?!

Correct me if I am wrong,but I think Centum's exposure to RVR was about 1bn.They have a long term investment strategy.The current woes at RVR is not causing them sleepless nights.If you have noticed,the press hardly mention them.Transcentury gets all the attention

Methinks they invested in RVR for strategic reasons and to have a say or clout in the transportation business that is critical for their other regional investments.

For example,if they invest in copper in Zambia or coffee in Uganda,they will need transportation services and RVR will fit perfectly.As shareholders,they could be offered cheaper transport charges.

But on the flipside,railway concessioning worldwide has been a risky and disappointing move by governments.In estonia,the goverment took back the railway business after concessioning to the private sector.

So,lets hope the same wont happen here in Kenya. The new team should atleast DO something and salvage the situation.

I dont think Centum will lose out in the years to come. They did their homework

Happy investing !

So much for RVR


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