The TCL saga is the biggest indictment of CMA. The CMA is following the principle of the mystic apes "see no evil, hear no evil, speak no evil".

Kuramo Capital have signed a definitive agreements to make capital injection but the minority shareholders and the public are not aware of what their equity stake will be. How many shares do they get? What is the dilution? Your guess is as good as mine. I am also surprised no one brought this up at the AGM. The dilution will probably have a higher impact on future dividends compared with the director's pay.

The annual report only mentions how the debt will be treated and when it will be repaid (September 2016).

Probably best proxy is the NAV and FV numbers on pg. 98 of the annual report. NAV = KES 3 Billion, FV = KES 9 Billion. Therefore KES 2 Billion injected by Kuramo will give them ~22% if KES/USD holds at current rate until Sep 2016.

Kuramo is bringing 2 billions shhillings in exchange of 94 million shares...elementary arithmetic tells me that each share is worth kshs. 21.27....is this the fair value of this laggard?

@Fyatu i think there is something else going on. My postulation would be to see where else Kuramo has deployed capital especially on the continent and see whether there are potential synergies to be struck via TCL.

Alternatively, they might have met a savvy TCL management who oversold themselves. Practitioners in our continent often lament how difficult it is to get a good size-able deal and also to value a company prior to a brownfield investment.

https://kuramocapital.com/about/team/[/quote]


I have tried to dig where else Kuramo has invested but has not been successful. But all indications are that there are synergies between TCL and Kuramo, moreso in the infrastructure space. At the AGM shareholders were informed that Kuramo was finalizing due diligence on TCL subsidiaries in Zambia, TZ, Congo and SA. Seems like after doing their math they concluded that 21 bob is a good entry point. I concur with you that "Tusomeshe watoto wetu"

What is the big news on TCL today?