MatataMingi wrote:Hi Guys,
Was in the Woolworths at lunch time. Got a 2 page "Fact Sheet". It has a fair bit of infomation. The Information Memorrandom is available at the offices of Standard Investment Bank & Kestral Capital.
Hope this of help. Would like your comments .
Regards.
@Deacons interested wazuans
Got the DEACONS KENYA LTD PUBLIC OFFER FOR SHARES |FACT SHEET 17 NOV – 2010. But the graphics will not appear here.
If you need the original, put your E-mail here.
Offer price : KES 62.50
Offer opens : 17th November 2010
Offer closes : 30th November 2010
Shares on offer : 12,800,000 shares
Offer size : KES 800 Million
Forecast Net Earnings FY10 : KES 149 Million
Prospective Offer P/E : 8.23x
Minimum Subscriptions
Qualifying Institutional Investors : 16,000 Shares [KES 1Million]
Individual/Corporate Investors : 2,400 Shares [KES 150,000]
Existing Shareholders : 10,000 Shares [KES 625,000]
Employees (share save scheme) : 80 Shares [KES 5,000]
Details of the Offer
The company and its businesses have been expanding and diversifying
into new products and franchises in the last five years
across the region. Deacons currently holds franchise for well
known brands such as;
• Woolworths in Kenya
• Truworths in Kenya and Tanzania
• Identity in Kenya and Tanzania
• Mr. Price in Kenya, Uganda and Rwanda
• Adidas in Kenya
• Life Fitness in East Africa (acquired in 2010) and
• Own brands namely; 4U2 and Angelo.
DEACONS KENYA LTD PUBLIC OFFER FOR SHARES |FACT SHEET 17 NOV – 2010
Company Background & Principle Business
Deacons Kenya Limited (Deacons) was incorporated in Kenya as
a private limited liability company in 1973 and has recently converted
to a public company on 26 October 2010. Deacon’s principle
business is to operate retail establishments including franchise
and department stores selling ladies', men's and children’s clothing,
footwear, accessories, gift items, home furnishing, toiletries,
cosmetics and sporting goods amongst other items.
Business Network
Objectives of the Offer
The medium term strategy of the Company is to increase its
store footprint from current 23 stores to over 50 stores in next
five years within Kenya and the region. The Company requires
additional funding for its expansion plans and the issue of
shares will strengthen its balance sheet, which will provide opportunity
for further leveraging. The net proceeds from the offer
will enable the company to;
• Expand the store footprint for its existing brands within
Kenya.
• Facilitate the expansion in East African Market (particularly
Uganda and Rwanda).
• Pursue new opportunities and grow the group portfolio of
international brands.
• Develop/acquire central warehousing and head office facilities.
Historical and FY10 Financial Performance
Transaction Advisors and Authorised Selling Agents to the Offer
Profits in the FY09 were boosted by a 30% increase in turnover
following an introduction of four new stores that commenced
trading in the last quarter of 2009.
During the current financial year 2010,the company forecasts
sales to touch approximately KES 2 billion compared to KES
1.5 billion in FY09 on the back of continued diversification and
expansion programs through restructuring and addition of new
stores.
Investors wishing to participate in the offer are advised to carefully read the Information Memorandum dated 12th November 2010
available at the offices of the below advisors to the offer and authorised selling agents.
STANDARD INVESTMENT BANK
16th Floor, ICEA Building, Kenyatta Avenue
Nairobi, Kenya
Tel: +254 (20) 2220225
KESTREL CAPITAL (E.A) LIMITED
5th Floor, ICEA Building, Kenyatta Avenue
Nairobi, Kenya
Tel: +254 (20) 2251758
Financial Information
Deacons’ sales trend peaks in second half of each financial year as illustrated below. The month of December has always reported the
highest sales due to festive season. The sales in second half of the year in the period 2005-2009 averaged 61% compared to 39% in the
first half of the year.
Seasonality of Sales
Existing Shareholders Trading of shares
The company will not engage in any unregulated
trading, except that, willing sellers can sell their Shares
to willing buyers at such price as may be agreed
between them, and shares can be transferred using a
duly executed share transfer form which should be
deposited with the Registrar together with the relevant
share certificate in relation to such Shares (if
applicable). Share transfer forms can be obtained from
the Company or the Registrar. Buyers of shares will
have to pay the applicable stamp duty on such
transfers to the Collector of Stamp Duty, and any
direct or other costs.
The authorised selling agents will facilitate Over
The Counter (OTC) trading in the shares of the
company.
Investment Merits
A pre-NSE Listing opportunity to invest in a
company with;
• The leading Fashion retail stores in E.A
• Franchise Agreements with International store
brands
• Premier shopping malls located across E.A
• Planned growth of upto 50 shopping malls
across East Africa by 2014
• Growing loyal customer base
• State of the art IT system and inventory control
• Proven and experienced management
• Within a business environment of growing disposal
income from East Africa’s growing middle
and upper income classes.
Current shareholding No. Of Shares %age Shareholding
Swedefund International Aktiebolag 3,816,225 19.45%
Pinpoint Investment Limited 2,365,940 12.06%
Charles Mwangi Gathuri 2,165,940 11.04%
Diana Bird 2,165,642 11.04%
Kirimara Limited 1,999,273 10.19%
Trikay Development 1,717,273 8.75%
Aureos East Africa Fund LLC 1,382,667 7.05%
Muchiri Wahome 778,672 3.97%
Subtotal 16,391,632 83.54%
Others 3,229,965 16.46%
19,621,597 100.00%
Subject to the Company meeting the necessary eligibility criteria and obtaining the requisite approvals, it is the intention to list the
Company’s shares on the Official List of the Nairobi Stock Exchange (“Listing”) by Introduction at a later date. Under the Capital
Markets (Securities) (Public Offers, Listing and Disclosures Regulations 2002), the Listing can only happen after the expiry of 12 months
from the date the Offer Shares are allotted in accordance with the provisions of this Information Memorandum. The Shares will not be
traded on the Nairobi Stock Exchange until such time as the Listing occurs. In this respect, this Offer is a step towards achieving this
objective.
Stock Exchange Listing
Important Notice
Investors are encouraged to open new special CDS account into which the shares will be deposited for ease of trading under the OTC
platform to be facilitated by the Authorised Selling Agents and the Share Registrar, CDSC Registrars Limited. The Offer may close early
at the discretion of the issue subject to the necessary CMA approval. Investors are therefore requested to apply for the shares early.
Deacons Kenya Limited Public Offer -Fact Sheet-17 Nov 2010
Go overdrive in purchasing the goods when there's blood on the streets, expecially if the blood is your own