muandiwambeu wrote:nashx wrote:citymayor wrote:nashx wrote:VituVingiSana wrote:Dear KenGen shareholders,
Pole sana.
VVS.
For my own information someone educate me on what would be the potential implications to the share price if the rights were undersubcribed
Section 3.5 of the IM: “A minimum of 65% of the Rights Issue is requires to be accepted for it to be declared successful. This implies that a minimum of 2,857,869,893 New Shares need to be taken up and fully paid for.”
Government is taking up its full 70 % stake so whatever you decide to do(or not do) you are facing a massive dilution since the rights issue is already “technically” successful
@citymayor
Asante that was the kind of answer I was looking for...
u should know your bedmate @citymayor. Gova's offered to convert wrong before the pie was put into the table and successfulness of such is not in question. the question is how will the 30% responded is the quiz. Gova does little of daily market price movements and if it does it would have save u by fronting a formidable ppt to save the stock price plunge being experienced. so, whoil is your bedmate here. could have arrangent the conversion privately here and save your heart the ache bumps.
what a cruel cold treatment affair. look and see how your big bro got you monkeyed here.
70% is successful, so what about 30% that says what trades and at what price? what are they left felleling, .....shafted ofcoarse.
@muandiwambeu overlooking the fact you are either striving to be a vernacular comic or we have to adapt to the incoherrent grammar, you do raise a valid
point. Assuming the 30 % take up their rights in full or by selling the Nil rights in the market(price dip below rights complicates matters), I still expect a reasonable FY16EPS post rights to mitigate any serious effects on the shareprice on a fundamental perspective.
Those feeling severely shafted are the fellows that bought into the share on FY15 announcements without looking into the books(cow fattening) and were unlucky to still be holding by rights issue book closure.
That said, it's a solid company at the 'right' price for longterm investors
The Emotional Dog and Its Rational Tail