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Rea Vipingo takeover at 40/= per share
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muganda
#31 Posted : Tuesday, December 03, 2013 1:59:51 PM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
Whatever the motive, it's clear Centum will likely succeed in either keeping status quo with a price of 50/= for everyone, or simply raising the offer price to 55/= then a bidding war https://www.nse.co.ke/li...r-nse-press-notice-2013

Spoiler alert
3.1 Issued share capital of RVP comprises 60 million ordinary shares. Centum owns 296,000 ordinary shares

4.1 Subject to whether Centum receives acceptances (waiver at their discretion) aggregated to 25% of issued shares RVP.

5.1 Centum wants RVP to continue to remain listed on the NSE.
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mv_ufanisi
#32 Posted : Tuesday, December 03, 2013 2:18:44 PM
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Joined: 1/15/2010
Posts: 625
Got to love Centum.
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muganda
#33 Posted : Wednesday, December 04, 2013 10:20:25 AM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
mv_ufanisi wrote:
Got to love Centum.


Indeed, they've succeeded to raise their share price 10% thus far, and perhaps up to 25% by the time this blows over.

Considering they could have easily bought over 2m shares of REA before the takeover offer by simply bidding at 30/= in the open market, will wait to see how smart buying 15m at 50/= pans out in terms of strategy.
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VituVingiSana
#34 Posted : Wednesday, December 04, 2013 11:01:02 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,347
Location: Nairobi
muganda wrote:
mv_ufanisi wrote:
Got to love Centum.


Indeed, they've succeeded to raise their share price 10% thus far, and perhaps up to 25% by the time this blows over.

Considering they could have easily bought over 2m shares of REA before the takeover offer by simply bidding at 30/= in the open market, will wait to see how smart buying 15m at 50/= pans out in terms of strategy.
Another Two Rivers coming up in Vipingo if Centum gets the 25% shareholding. Vipingo is 35 kms from Mombasa. A new multi-lane Mombasa-Malindi Highway would open the Vipingo Area just as Nairobi-Thika Highway has opened up Juja, Ruiru and Thika.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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mkonomtupu
#35 Posted : Wednesday, December 04, 2013 11:18:45 AM
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Joined: 2/10/2010
Posts: 1,001
Location: River Road
Sasini would have been a better takeover candidate for centum than REA. It has prime properties in some good areas plus it has a market value close to the 3 billion on offer.

I always wonder about centum what is their area of core competence or do they just like acquisitions
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guru267
#36 Posted : Wednesday, December 04, 2013 11:41:24 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
mkonomtupu wrote:

I always wonder about centum what is their area of core competence or do they just like acquisitions

Centum is just an investment firm and investment opportunities do not discriminate!
Mark 12:29
Deuteronomy 4:16
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jerry
#37 Posted : Wednesday, December 04, 2013 11:51:45 AM
Rank: Elder

Joined: 9/29/2006
Posts: 2,570
the deal wrote:
LOL If the bizarre bid from Centum is all about land then Kenyans are obsessed with land...btwn who is going to back Centum's bid? Centum is just a spoiler and just prolongs the process...

Now see the share price. Some pple will forget to alight at their destination!
The opposite of courage is not cowardice, it's conformity.
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Pesa Nane
#38 Posted : Wednesday, December 04, 2013 1:18:15 PM
Rank: Elder

Joined: 5/25/2012
Posts: 4,105
Location: 08c
Aly-Khan Satchu's conclusion of the FY2011:

"See Below and I had been telegraphing a High Beta FY Turnaround. Rea Vipingo essentially trades on a PE of 1.887 which is an absurd Valuation. The Decision to raise the Dividend 37.5% where EPS has
increased 595.5% is only explained as follows - Either Management does not comprehend that a 14.12% Dividend Pay Out Ratio for a Mature Agricultural Business is simply so absurd its off the charts or they are deliberately trying to suppress the Price."
Pesa Nane plans to be shilingi when he grows up.
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sparkly
#39 Posted : Wednesday, December 04, 2013 1:27:02 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
stocksmaster wrote:
muganda wrote:
Now now does Centum have the wherewithal to run ReaVipingo if founders leave?
Or maybe an effort to raise the takeover consideration they obtain?
Or an undercover agreement with the brothers?
Perhaps another Centum share price summersault!



Its the land.........I don't think Centum are interested in farming sisal. The over 10000 acres at Rea Vipingo even at a conservative Ksh 1M per acre values the share at about Ksh 200. Factor in Kibwezi and TZ acreage plus the retained earnings minus debts and you realise even Ksh 400 (10 times the initial offer price) would be a steal. The valuation of this company as far as a takeover is concerned should not be based on the 6 months share price average plus some token but on the value of the balance sheet and in particular the land at play.

Am happy Centum is putting in a fight for the locals whose assets are almost going for a song.

Happy hunting.


I am going to add more of Centum, cross my fingers and hope they succeed in their bid.

Vipingo Ridge bought some sisal estate at KShs 30k per acre 7 years ago but are selling at KShs 14m per acre after building the golf course.
Life is short. Live passionately.
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Kausha
#40 Posted : Wednesday, December 04, 2013 6:01:27 PM
Rank: Member

Joined: 2/8/2007
Posts: 808
Interesting play by Centum. The value of that land is crazy. Reminds me of the theft Unilever carried out by delisting when markets were rock bottom in 2009 yet the carrying value of the land was so low.

Great to see Centum reading in between the mischief REA holdings were about to carry out.
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