Not sure about this. The shares will be substantially diluted coz of entry of new capital converted from debenture. Am not sure how the debenture will be converted. Will it be ordinary sharecapital or will it be preference shares like KPLC. Its better for us old shareholders that it comes in as preference shares.

Uchumi is also facing significant challenges in their business from competoition (Nakumatt, Tuskers and all the rest) and they may not immediately win over investors till people start to see good results on their shop floors

@Chi20, I doubt, should the government convert debt into ordinary shares they will really dilute the company. I think that is the most probable action since converting its debt into preferrential shares is a loan by any other name.

IMHO... the price will drop to around 3/- but then rapidly rise... I think the 5/- number may not be off.

The CATCH is that you have to be patient... Most people are not...

As @mukiha said... if you have waited for 4 years (how long has it been?) then why not wait a little longer.

(Bloomberg) -- Uchumi Supermarket Ltd. of Kenya shareholders voted to end the company’s receivership at a shareholders’ meeting in Nairobi today.

The company’s debenture wll be converted into shares of 10 shillings each, Receiver Manager Jonathan Ciano said at the meeting today.

Planned total shares of 262.5 million, up from 180m - a smaller increase in shares than i had expected. Their target of 500m earnings for the current year would therefore translate to a targeted EPS of about 1.9shs. Shs 19 as trading price seems feasible (translating to a PE of 10) in the short to medium term.
I dont really see a price under 10shs.
But, lets wait and see. This market has its surprises..