I tend to agree with the Deal. The 0.3B new shares out of about 1.772B represents almost 17% of the entire shareholding of the company.If not spread over at least 10 years (the first ESOP by Kenol Kobil of 2003 only apportioned about 0.65% of the total shareholding of the company), then the 467 employees (as at March 2010)through the ESOP will rank among the top three shareholders of KK. I wonder what the percentage of issued shares constitutes the ESOP in the other NSE listed companies.The management will need to do alot of justification for this even to the CMA (does CMA have a limit of what the ESOP should constitute as a percentage of the total issued shares?).

Having said that, the management must be very optimistic of growth especially with the ongoing expansion for them to seek such a collosal amount of shares for the ESOP. By the time all the ESOP shares have been allocated to employees (in 5 - 10 years), the issued shares should be in the range of 6B in order for the employee stake to be about 5%.

Happy hunting.

SELL, SELL, SELL!!

. this issue is so hot till it removed @ stockmaster where he was hidding...Mr.Stockmaster how do you like the bear markets so far. are you invested in any defensive stocks.coz its the only way you can do another 100% (ifnot close to) in this market.as for me my stand is know am bearish till year's end.

@qw,over time the company profits should also grow to justify any employee rewards,otherwise they should pay for them at market price,like the case at Access.
At Equity bank the ESOP has a 3.8% holding,which is reasonable.That is why i do not expect the management at KK to be blind to the dilution angle and expect issuance over a period backed by growth.But hey if they can sustain 40% YOY,that is another matter.

The CMA should look into this. E in ESOP means employee but we know its only the executives who benefit. When the dust settles Segman will be a few billions richer