This is definatly an april fools day prank.my broker hasnt emaild me the OFFICIAL communication from the company.
This is very careless of n.s.e to play jokes on such important matters.

I pray that it is a joke but it bears Jacob Segman's signature and is dated 31st March 2011 NOT April 1st 2011. In any case, April fools pranks are supposed to end by midday if I am not wrong. Hence, I presume you can sue NSE for distributing false/misleading/Stress inducing information etc if it turns out to be incorrect.

I doubt this is an April Fool's prank. It is a serious matter.

I am OK with the issuance of additional shares under an ESOP but they have to be at the market price OR given only when certain benchmarks are made.

In essence the question is of COMPENSATION...

I prefer shares [300mn shares = KES 3bn] given as compensation over time than cash. KQ's management has hardly any shares but are paid in cash so do not care about the shareholders as much if at all except for GoK & KLM.

My gut tells me the shares will be issued over 5 years thus there is a dilution factor but if the employees can generate KES 600mn+ over & above the current profits, then it is OK.

Also, the cash that would go to pay employees will be reduced & go into KK's capital as shareholders' funds...

No wonder the share price has remained stagnant, insiders new this was coming, i say 300 Mil of new shares is too much and the dilution will be massive unless Segman anticipates 50+% growth in coming years, but at least employees will buy shares at the current price...OVERALL this is bad news and the timing is wrong.

300 Mil new shares is BullS***t Segman can't just wake up and dilute us like that...i urge shareholders who are going to the AGM to vote against it.