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National Bank - Rights Issue
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VituVingiSana
#11 Posted : Tuesday, March 04, 2014 12:52:17 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,354
Location: Nairobi
That is a HUGE Rights Issue to raise KES 13bn but a large chunk will be the conversion of Preference Shares to Common Shares so do NOT expect NBK to get a huge boost in it's Shareholders' Capital.

The good news for NBK is it will not have to pay Preference Dividends to NSSF but it will have to pay common dividends. The bad news is that NSSF will have a larger direct say in NBK due to the Preference [non-voting] shares to [voting] Common shares.

Can NBK become a Takeover Target? Yes, but only if NBK allows it. Will CBK allow NSSF to own more than 25% of NBK? That needs to be seen.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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hisah
#12 Posted : Tuesday, March 04, 2014 4:09:09 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
Another huge rights issue... This has put a dumper on this laggard and I'm forced to strike it out from the laggards bus until the rights issue becomes clear. KQ rights mess was as messy as it can get.

Possible for it to break below the 30/- handle as the rights is digested even with super results!
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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mlennyma
#13 Posted : Tuesday, March 04, 2014 7:21:40 AM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
A rights price of above 20 wont be attractive and they should be very careful that the market price might meet the rights price.very many counters are turning to be a sell lol!!
"Don't let the fear of losing be greater than the excitement of winning."
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VituVingiSana
#14 Posted : Tuesday, March 04, 2014 7:31:36 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,354
Location: Nairobi
VituVingiSana wrote:
That is a HUGE Rights Issue to raise KES 13bn but a large chunk will be the conversion of Preference Shares to Common Shares so do NOT expect NBK to get a huge boost in it's Shareholders' Capital.

The good news for NBK is it will not have to pay Preference Dividends to NSSF but it will have to pay common dividends. The bad news is that NSSF will have a larger direct say in NBK due to the Preference [non-voting] shares to [voting] Common shares.

Can NBK become a Takeover Target? Yes, but only if NBK allows it. Will CBK allow NSSF to own more than 25% of NBK? That needs to be seen.
And here is an article http://www.standardmedia...ank-s-rights-issue-plan
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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the deal
#15 Posted : Tuesday, March 04, 2014 7:50:25 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
This stock I will buy below Ksh20 at some point during the year...thats if I become interested.
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mkeiy
#16 Posted : Tuesday, March 04, 2014 11:04:18 AM
Rank: Member

Joined: 1/27/2012
Posts: 851
Location: Nairobi
hisah wrote:
Another huge rights issue... This has put a dumper on this laggard and I'm forced to strike it out from the laggards bus until the rights issue becomes clear. KQ rights mess was as messy as it can get.

Possible for it to break below the 30/- handle as the rights is digested even with super results!



@hisah, With Msc getting one year extension and Nbk calling for rights,only Kk and Kq remain on the laggards list. 2014 might turn out to be a difficult year as the bear reigns.
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  | | Edit by user: Tuesday, March 04, 2014 11:10 AM | Reason: Not specified
hisah
#17 Posted : Tuesday, March 04, 2014 11:17:57 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
mkeiy wrote:
hisah wrote:
Another huge rights issue... This has put a dumper on this laggard and I'm forced to strike it out from the laggards bus until the rights issue becomes clear. KQ rights mess was as messy as it can get.

Possible for it to break below the 30/- handle as the rights is digested even with super results!



@hisah, With Msc getting one year extension and Nbk calling for rights,only Kk and Kq remain on the laggards list.

The list now has KPLC, KQ and KK. I'm now scoping TPSE and TCL. I've got an eye too on KEGN if the price breaks below 10 and lower.

For 2014 I've picked WTK and NMG and still hold KQ (Q4 2013) and a small SCOM lot and CFC (the only long term play). I'm playing purely defensive until the eurobond issue becomes clear.

$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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  | | Edit by user: Tuesday, March 04, 2014 11:20 AM | Reason: Not specified
Metasploit
#18 Posted : Tuesday, March 04, 2014 11:33:43 AM
Rank: Veteran

Joined: 3/26/2012
Posts: 985
Location: Dar es salaam,Tanzania
Blood bath!

25 isnt a mirage

“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.”
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PKoli
#19 Posted : Tuesday, March 04, 2014 11:53:59 AM
Rank: Elder

Joined: 2/10/2007
Posts: 1,587
Metasploit wrote:
Blood bath!

25 isnt a mirage

It looks there is blood bath on NBK. I never saw this coming.
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mlennyma
#20 Posted : Tuesday, March 04, 2014 1:03:04 PM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
if you didn't get out wait for the sword.its very sharp.investors don't want to hear the word rights of huge amounts and I feel nervous the market is showing bear signs everyday.we might never know when the mother bear reaches.
"Don't let the fear of losing be greater than the excitement of winning."
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