@muandiwambeu. Weekendi njema.

If the rights issue was at the current moderate price of 7.50, KEGN would have to issue extra 3.8 Billion shares approx'

Add to that the Govt's Debt to Equity Conversion.

What are the predictions of where the rights price will be at in June . . .

Four for every one held. Where are you getting 2:1 from. Total shares to be issued 7.8, current issued 1.9. Hii hesabu ngumu kweli.
Dilution is what you get here. Approx. Six years to recovery kama utafunga mshipi vizuri. At 3.5/= am a buyer.

Classic case of fear mongering...your analysis of this is too simplistic.It will require a significant change of fundamentals for the share price to go below the rights price (assuming its 5/=).Mark you these are not bonus shares accruing to a shareholder at zero cost.Therefore a sale below the rights price would require some drastic information.The rights can only be at a maximum of 3 for every 1 held.Issued shares are at 2.1Billion and as per the shareholder approval a maximum of 7.8Billion can be issued.To issue 4 for 1 they will require 8.4Billion shares which the shareholders did not authorise.

@mthaka
2:1 means the rights issue price will be at 6.50 since private shareholders are expected to raise ksh.8.58bn.
The government will maintain its stake at 70% and will defend via converting sh.20bn debt to equity.
The number of shares entitled to private shareholders is therefore
4.4bn*0.3=1.32bn.

@muandiwambeu
Not all the 7.8bn authorised shares will be issued during the upcoming rights issue.