Rank: Veteran Joined: 4/4/2016 Posts: 2,016 Location: Kitale
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Mkondoa Macho wrote:VituVingiSana wrote:Elephant Man wrote:I understand that Kenya-Re now holds a 20% or thereabouts stake in ZEP-Re.
Are they competitors?
Anyone know whether they share common facilities/resources in the countries in which they have a physical presence i.e. Kenya, Zambia and Ivory Coast?
In my view in would be in the interest of the GoK to urgently seek to divest a significant stake to a 'strategic investor' (Munich Re, Swiss Re, Lloyd's, Gen Re (part of Berkshire Hathaway), Zurich Re, China Re etc spring to mind) so as the 'true' value of this company can be obtained.... Yes, now that KenRe is going "regional" they are competitors BUT ZepRe is a "transnational" that has goodwill [thanks to the ownership structure] that KenRe doesn't have in many markets. ZepRe has many government & quasi-government shareholders. In Kenya, ZepRe has it own offices in Upper Hill. No idea about the other countries. Yes, KenRe needs a strategic investor who, hopefully, pays "intrinsic" value to acquire shares in KenRe. Offer me 35/- today and my shares are yours! This is the only reason I dont buy the shares of this counter. Despite the good performance, the value remains locked because GoK owns 60% of the business. When GoK decides to offload (to less than 40%)Safaricom style, which may take forever, I will buy in bulk. Until then, I will watch from the sidelines. a look at the listed insurance companies indicates that kenya re is the only counter that offers true value to an investor.Kenya-re was the only one that posted profit for FY 15.Cic was only helped by its big sister co-op bank. Towards the goal of financial freedom
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