Selling such a huge chunk of land should have required minority shareholders' approval!!!!

I hope that Eagaads did not 'sell' the land but got a share of Tatuu...

Minority shareholders have been screwed over. Eagads is now Waguthu, but Waguthu is not Eagads! That leaves the minority shareholders with extremely scaled down operations and a parent company not interested in the business of Eagads. If you are in Eagads you might get a large one-off special dividend and told to bounce. Wooooiii where is stella kilonzo.

@the deal I think you are quite right... I was watching Aly Khans Interview on CNBC and he said based on the land revaluations and premiums to be paid Eaagads is worth 400bob per share

At a current price of 55 I will buy ONLY 1000 shares since i'm speculating and watch this grow or get wiped out...

But right now this stock seems to offer more prospects of return than ris

Waguthu Holdings acquired 62% of issued share in Eaagads LAST YEAR! Then, nobody except Waguthu's & RenCap knew there will be a TATU city.

@thedeal

Was this the story

Aly Khan Satchu Nov 1, 2010
Agricultural firms sitting on the jackpot
The launch of Tatu City, a project by Renaissance Group, last week is apparently the largest post colonial planned city in sub Saharan Africa. It is bigger than Sandton in South Africa and will house 66,000 residents, it is estimated to be a Sh400b project and covers 1000 hectares of land off the Thika super highway
The news flow made people begin to visualise the scope of the project
That’s a game changer right there
Some years ago, I had done my analysis and pored through the balance sheets of all the agricultural counters listed at the Nairobi Stock Exchange
And I had noticed that the vast land banks were being carried in the accounts at the historic price. This was the case with Eaagads, Sasini Tea and Coffee, Kakuzi, Williamson and Kapchorua Tea
I then started paying a great deal more attention to the location of the land. I had a supreme conviction that tea and coffee prices were headed to multi year highs so I saw the underlying metrics improving and on top of that I saw this ‘jackpot’ trade where these agricultural companies would convert some land into residential real estate and unlock value for their shareholders
For example, I estimated Eaagads to be worth 400 shillings a share, Sasini Tea and Coffee about 70 shillings a share, Kakuzi something like 500 shillings a share
Basically between seven to ten times the current share price
Eaagads is up 150% over the last 12 months and rallied over 15% from Wednesday last week
You see in any financial market from Timbuktu to New York, there is one reality. You have to create value for shareholders otherwise you are toast. If you are not maximising returns for shareholders, you are in fact in gross dereliction of your duty
I asked myself every day, why have the management of these agricultural companies been so derelict in this one and preeminent role of creating value for their shareholders? Why has it taken a company from Russia to show us what needs to be done? Why have Sasini, Kakuzi and each and every company that should have instituted this play book long before Rennaissance even sniffed it not done so? The 21st century has now arrived and we all have to take a long and hard look at two things as shareholders: competence of leadership at creating value for its shareholders and ways of compulsion of making majority shareholders operate at best practice
I can assure you the whole world is now looking through the inner workings of these agricultural companies
In fact, I invite all of you to do so because it is an information century
Shares go up and down and readers are advised that this column represents Mr Satchu’s personal opinions.