As much as the conversion of the 7.85% non-cumm Pref stock to equity will see the Govt end up being the majority s/holder, not a good thing for you and i, i believe the Rights issue which makes no financial sense to the investor who can't be able to borrow at 7.85% or low, is intended to bring down the Govt s/holding to slightly above 50% from highs of 70% after the conversion, by the Govt renouncing some of its rights n trade them at the NSE. With a majority stake, the Govt will be able to qualify for sovereign loans n hav itself as the guarantor, due to its majority stake.

http://www.afdb.org/en/p...loans-for-public-sector/

Just like KCB

@renegade i'd be very happy to do so....

If they do the conversion at 180(i'm using worst case scenario from your question)... this will give
15.9billion/180 which creates 88.3million new shares....

Add this to the existing 79.128 million shares and you get 167.4 million shares....

If current profits rise by 10% then diluted EPS will be 24.3bob...

Multiply this by the market or sector P/E of 14 and you have a share price of 340 AFTER the share conversion...

Now you can only imagine if they convert at 300 like @VVS wants...

this share traded at 355 at one time when the company was not yet out of the woods in terms of the balance sheet. assuming an even greater thirst will be there when the restructuring occurs and the great pachage (dividends) i am raising my bet to over 320 KES per share.