@Horton

You are on to something...I make it a policy not to trust the govt.Woe to the people who believe in the goodwill of the govt to the ordinary folk.

@muganda if @hortons argument had any weight then we would all expect the price for this counter to be falling through the ground and not to rise 22% in less than a month...

GOK is converting 13.8bn worth of pref shares... if they convert at current price then there will be about 76.2mn new ordinary shares bringing total issued ordinary shares to 155.3mn shares adding the 79.128mn already issued...

this will cause last years EPS to drop to around 21.59 and P/E will then be about 8.4... but taking into account this years half year results the EPS may be rise to about 27.7 and give a p/e of 6.5...

after the split it will be a penny blue chip stock and these stocks always trade with a P/E above 13...

so if one does the math one can easily make money without even having to take up his/her rights in the rights issue...

@tupac.. we all need to realise and understand that this "bluechip" stock is trading with a P/E of less than 5 when the market p/e is 13 and rising...

so even if GOK dilutes the stock it will still be trading at a p/e of less than 9 which is cheap for a growing bluechip company...

i expect the announcement on restructuring either this week or next week

What I am foreseeing is after Gok reducing its stake,It will force KPLC to lower elec. cost to consumers which means lower profitability.Just thinking...

@sheep GOK currently owns 40% of KPLC and after conversion of the prefs it will own more than 70% and then after rights issue it will own a little more than 50%.. this represents an overall increase in their stake in the company...

point of onformation KPLC last tuesday printed on the daily nation that they desire to maintain profitability at 10%-12% of the total asset base which currently stands at around sh70billion and this is bound to rise with an increase in capital expenditure