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KenGen’s Kes 141 Billion Rights Offer to Quadruple Shares in Issue
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mlennyma
#51 Posted : Thursday, January 16, 2014 12:04:00 PM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
Different gvts will come with different opinions but the investor story was there,others never feel very comfortable in a company where changing gvts owns majority of it.
"Don't let the fear of losing be greater than the excitement of winning."
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Ericsson
#52 Posted : Thursday, January 16, 2014 12:06:58 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,809
Location: NAIROBI
The governments but the technocrats are the same.
There is nothing different at treasury between president Kibaki's reign and Uhuru's reign.
It's the same fish swimming in the waters.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Ericsson
#53 Posted : Thursday, January 16, 2014 12:11:29 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,809
Location: NAIROBI
KENGEN this year it's hands are full as they have to race to bring on board the 280MW geothermal power.
This project was majority financed by Japanese through JICA.
The Japanese PM Shinzo Abe was in Africa last and early this week.
Expect more loans to be given to KENGEN for the geothermal projects as Japan moves to cut the clout of China in Africa.
That may have been the reason the incoming CEO is now saying they target to raise ksh.15 billion from the rights issue
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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mlennyma
#54 Posted : Thursday, January 16, 2014 12:21:06 PM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
So at the end of the day,japan will be kengens hidden strategic investor.
"Don't let the fear of losing be greater than the excitement of winning."
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mkonomtupu
#55 Posted : Thursday, January 16, 2014 12:27:58 PM
Rank: Veteran

Joined: 2/10/2010
Posts: 1,001
Location: River Road
Quote:
Electricity Government Owned Entities in this sector are involved in electricity generation, transmission and supply, and regulation of the sector. With respect to electricity, it is noted that Kenya Power and Lighting Company (KPLC) and Kenya Electricity Generation Company (KenGen) are partially privatized and may be candidates for further divestment. The two companies are critical in ensuring Kenya has adequate affordable electricity to drive industrialization and economic development. It is therefore important that any further restructuring of the two entities ensures Kenya’s energy requirements in a manner consistent with the national development goals. In this regard it is recommended that the Government Investment Corporation should consider increased shareholding in the Kenya Power and Lighting Company and Kenya Electricity Generation Company in a manner supportive of the national development goals.


This is what the presidential task force recommended on KPLC and Kengen.

Mr. Market is playing havoc on the govt plans. They have now reduced the rights to 15 billion. My thinking is the GoK may need to mop up the shares from the market before the rights issue or during the rights to prevent price volatility. This will not be last rights issue Kengen will need to keep coming back every 3 years for rights. Think long term act short term
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the deal
#56 Posted : Thursday, January 16, 2014 12:33:45 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
mkonomtupu wrote:
Quote:
Electricity Government Owned Entities in this sector are involved in electricity generation, transmission and supply, and regulation of the sector. With respect to electricity, it is noted that Kenya Power and Lighting Company (KPLC) and Kenya Electricity Generation Company (KenGen) are partially privatized and may be candidates for further divestment. The two companies are critical in ensuring Kenya has adequate affordable electricity to drive industrialization and economic development. It is therefore important that any further restructuring of the two entities ensures Kenya’s energy requirements in a manner consistent with the national development goals. In this regard it is recommended that the Government Investment Corporation should consider increased shareholding in the Kenya Power and Lighting Company and Kenya Electricity Generation Company in a manner supportive of the national development goals.


This is what the presidential task force recommended on KPLC and Kengen.

Mr. Market is playing havoc on the govt plans. They have now reduced the rights to 15 billion. My thinking is the GoK may need to mop up the shares from the market before the rights issue or during the rights to prevent price volatility. This will not be last rights issue Kengen will need to keep coming back every 3 years for rights. Think long term act short term

How about GoK buys the company and delist? That way GoK can do what ever they want without harming Wanjiku...it was even a mistake to list a strategic company like KenGen...That task force was not thinking.
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mlennyma
#57 Posted : Thursday, January 16, 2014 12:37:48 PM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
A rights issue means the gava will be paying like 10b,do they have money to mop up any other shares if taking their rights is still a heavy task?
"Don't let the fear of losing be greater than the excitement of winning."
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mkonomtupu
#58 Posted : Thursday, January 16, 2014 12:48:09 PM
Rank: Veteran

Joined: 2/10/2010
Posts: 1,001
Location: River Road
@deal, the market has been kind to kengen if you bought the PIBO so it was not a mistake the company has actually grown from 2006. Companies operate on the same basis. Anyway here are some recommendation of the taskforce which should show you the kind of thinking in govt right now

Quote:
This report also recommends that the current privatization programme be referred to the GIC which will determine how best to proceed with the programme. As far as is possible, there should be active efforts to grow the value of existing assets before disposal. The functions of the Privatization Commission will be transferred to the GIC. In addition, the proposed Government Investment Corporation be empowered to make Government investment decisions on portfolio basis and to hold the government shares in Government Linked Companies.


@mlennyma, gava came through on the KQ rights issue you will be surprised
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Ericsson
#59 Posted : Thursday, January 16, 2014 12:51:49 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,809
Location: NAIROBI
@mlennyma;
JICA has been KENGEN's hidden strategic investor for majority of their projects.
@the deal;
Listing of KENGEN was a good idea for Kenyans to share some of the fruits of the company like dividends and the share appreciation that was there in the initial years
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Ericsson
#60 Posted : Thursday, January 16, 2014 12:54:32 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,809
Location: NAIROBI
@mlennyma;
the government will just defend it's share so that it remains with 70% stake.
This company has been giving them consistent and handsome dividends since listing to gava.
Out of the approximately ksh.1.32 billion they will pay as dividends end month gava will get around ksh.924million
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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