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Kenya Airways...why ignore..
Rank: Elder Joined: 6/23/2009 Posts: 14,213 Location: nairobi
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Ericsson wrote:If GOK and KLM sit out in the rights issue chances of undersubsription very high @ericsson its not a Rights Issue but an Open Offer. please read the circular and understand its contents to avoid an open display of high ignorance. the two primary shareholder entities sitting out the Open Offer, increases chances of heavy loading up by other existing shareholders. Further, the board has stated clearly that existing shareholders will be allowed to buy at a discount to the conversion price. Click here to read the KQ Project Safari circular
KQ ABP 4.26
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Rank: Elder Joined: 6/23/2009 Posts: 14,213 Location: nairobi
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Spikes wrote:obiero wrote:Ericsson wrote:obiero wrote:actuarywahisa wrote:obiero wrote:Ericsson wrote:
Kq is still in negative equity. Government loans amounting to $243mn is what will be converted to equity.
$525mn owed to US Exim Bank and $225mn owed to local lenders will have to be repaid with GOK acting as guarantor.
Local lenders/banks will not own any stake in KQ.
You could be right and that would imply less dilution.. Meanwhile, airlines and negative equity go hand in hand.. It's a normal thingy which we have already discussed here. The cash flow is what will be increased via the tenor concessions.. And that is a very good thing... As for bank debt to equity position, soma hii link along with the cautionary statement http://mobile.reuters.com/article/idUSKBN1962OA
The $225m for local banks will be converted to equity and then the deal appears for them to exit through open market. In the event that they are unable to exit and recover their money within the set timelines because of share price not recovering sufficiently then the government has to step in and compensate. And in the unlikely event that KQ folds then the Government wires capital + interest. @actuary seems @Ericsson did not go to school.. Could we team up and send the guy for gumbaru Kweli sikwenda shule. Tafakari haya basi "KQ, as it is known by its international code, secured House approval that will see the Treasury guarantee long-term loans that the airline owes the US Exim Bank ($525 million) and local lenders ($225 million). These guarantees are being made in exchange for “material concessions” that include an extension of debt tenors, which will improve the airline’s repayment obligations." http://www.businessdaily...76768-cxrmd3/index.html
@ericsson learn to listen to people who know what is happening.. KQ Lenders Co. LTD registered on 09.06.2017 shall now be a KQ shareholder. Total shares issued now rises to 29.9B.. Conversion price KES 2.13.. The same occurring via a share split and eventual consolidation with a factor of 1:4, resulting in 7.4B final listed shares. I await the Open Offer of 1.5B whose price the exchange bar notes has been agreed in principle to fall below KES 1.6.. There is no rights option so indeed I will buy to mitigate dilution of 95.5%, noting that the KQ Lenders Co Ltd, GoK & KLM will not participate in the issue. GoK now holds 45% of KQ.. KLM founding agreement of 1995 abolished. KQ now in positive equity of KES 11.5B. Sit tight Which means my prophecy of 2/ bob is already smashed! Please read the circular to understand the basis of arrival at KES 2.13. Its not as simple as you imagine, but definitely tomorrow the share may tank due to similar misunderstanding by Wanjiku. Meanwhile, the EGM will obviously approve the Open Offer on 07.08.2017. Plain calculations show that the fair value post-consolidation in a ratio of 1:4, to be KES 8.5 per KQ share, down from previous fair value of KES 10; still, PJT Partners, MJ, MN & SM have done a splendid job in the capital restructure.. Hats off
KQ ABP 4.26
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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obiero wrote:Spikes wrote:obiero wrote:Ericsson wrote:obiero wrote:actuarywahisa wrote:obiero wrote:Ericsson wrote:
Kq is still in negative equity. Government loans amounting to $243mn is what will be converted to equity.
$525mn owed to US Exim Bank and $225mn owed to local lenders will have to be repaid with GOK acting as guarantor.
Local lenders/banks will not own any stake in KQ.
You could be right and that would imply less dilution.. Meanwhile, airlines and negative equity go hand in hand.. It's a normal thingy which we have already discussed here. The cash flow is what will be increased via the tenor concessions.. And that is a very good thing... As for bank debt to equity position, soma hii link along with the cautionary statement http://mobile.reuters.com/article/idUSKBN1962OA
The $225m for local banks will be converted to equity and then the deal appears for them to exit through open market. In the event that they are unable to exit and recover their money within the set timelines because of share price not recovering sufficiently then the government has to step in and compensate. And in the unlikely event that KQ folds then the Government wires capital + interest. @actuary seems @Ericsson did not go to school.. Could we team up and send the guy for gumbaru Kweli sikwenda shule. Tafakari haya basi "KQ, as it is known by its international code, secured House approval that will see the Treasury guarantee long-term loans that the airline owes the US Exim Bank ($525 million) and local lenders ($225 million). These guarantees are being made in exchange for “material concessions” that include an extension of debt tenors, which will improve the airline’s repayment obligations." http://www.businessdaily...76768-cxrmd3/index.html
@ericsson learn to listen to people who know what is happening.. KQ Lenders Co. LTD registered on 09.06.2017 shall now be a KQ shareholder. Total shares issued now rises to 29.9B.. Conversion price KES 2.13.. The same occurring via a share split and eventual consolidation with a factor of 1:4, resulting in 7.4B final listed shares. I await the Open Offer of 1.5B whose price the exchange bar notes has been agreed in principle to fall below KES 1.6.. There is no rights option so indeed I will buy to mitigate dilution of 95.5%, noting that the KQ Lenders Co Ltd, GoK & KLM will not participate in the issue. GoK now holds 45% of KQ.. KLM founding agreement of 1995 abolished. KQ now in positive equity of KES 11.5B. Sit tight Which means my prophecy of 2/ bob is already smashed! Please read the circular to understand the basis of arrival at KES 2.13. Its not as simple as you imagine, but definitely tomorrow the share may tank due to similar misunderstanding by Wanjiku. Meanwhile, the EGM will obviously approve the Open Offer on 07.08.2017. Plain calculations show that the fair value post-consolidation in a ratio of 1:4, to be KES 8.5 per KQ share, down from previous fair value of KES 10; still, PJT Partners, MJ, MN & SM have done a splendid job in the capital restructure.. Hats off https://photos.app.goo.gl/wrEb6X1GzBw4V1b93 sincerely it would not be any easy here, held by the steel balls. Somebody must be wondering how it got all the way to this difficult situation.   ,Behold, a sower went forth to sow;....
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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obiero wrote:Spikes wrote:obiero wrote:Ericsson wrote:obiero wrote:actuarywahisa wrote:obiero wrote:Ericsson wrote:
Kq is still in negative equity. Government loans amounting to $243mn is what will be converted to equity.
$525mn owed to US Exim Bank and $225mn owed to local lenders will have to be repaid with GOK acting as guarantor.
Local lenders/banks will not own any stake in KQ.
You could be right and that would imply less dilution.. Meanwhile, airlines and negative equity go hand in hand.. It's a normal thingy which we have already discussed here. The cash flow is what will be increased via the tenor concessions.. And that is a very good thing... As for bank debt to equity position, soma hii link along with the cautionary statement http://mobile.reuters.com/article/idUSKBN1962OA
The $225m for local banks will be converted to equity and then the deal appears for them to exit through open market. In the event that they are unable to exit and recover their money within the set timelines because of share price not recovering sufficiently then the government has to step in and compensate. And in the unlikely event that KQ folds then the Government wires capital + interest. @actuary seems @Ericsson did not go to school.. Could we team up and send the guy for gumbaru Kweli sikwenda shule. Tafakari haya basi "KQ, as it is known by its international code, secured House approval that will see the Treasury guarantee long-term loans that the airline owes the US Exim Bank ($525 million) and local lenders ($225 million). These guarantees are being made in exchange for “material concessions” that include an extension of debt tenors, which will improve the airline’s repayment obligations." http://www.businessdaily...76768-cxrmd3/index.html
@ericsson learn to listen to people who know what is happening.. KQ Lenders Co. LTD registered on 09.06.2017 shall now be a KQ shareholder. Total shares issued now rises to 29.9B.. Conversion price KES 2.13.. The same occurring via a share split and eventual consolidation with a factor of 1:4, resulting in 7.4B final listed shares. I await the Open Offer of 1.5B whose price the exchange bar notes has been agreed in principle to fall below KES 1.6.. There is no rights option so indeed I will buy to mitigate dilution of 95.5%, noting that the KQ Lenders Co Ltd, GoK & KLM will not participate in the issue. GoK now holds 45% of KQ.. KLM founding agreement of 1995 abolished. KQ now in positive equity of KES 11.5B. Sit tight Which means my prophecy of 2/ bob is already smashed! Please read the circular to understand the basis of arrival at KES 2.13. Its not as simple as you imagine, but definitely tomorrow the share may tank due to similar misunderstanding by Wanjiku. Meanwhile, the EGM will obviously approve the Open Offer on 07.08.2017. Plain calculations show that the fair value post-consolidation in a ratio of 1:4, to be KES 8.5 per KQ share, down from previous fair value of KES 10; still, PJT Partners, MJ, MN & SM have done a splendid job in the capital restructure.. Hats off I think @obiero you're being relieved by the act of consolidation. The 2bob prophecy applies to debt conversion only before consolidation .....not to every shareholder including oKQiero....Sit tight and wait for a take off... John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Elder Joined: 6/23/2009 Posts: 14,213 Location: nairobi
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Spikes wrote:obiero wrote:Spikes wrote:obiero wrote:Ericsson wrote:obiero wrote:actuarywahisa wrote:obiero wrote:Ericsson wrote:
Kq is still in negative equity. Government loans amounting to $243mn is what will be converted to equity.
$525mn owed to US Exim Bank and $225mn owed to local lenders will have to be repaid with GOK acting as guarantor.
Local lenders/banks will not own any stake in KQ.
You could be right and that would imply less dilution.. Meanwhile, airlines and negative equity go hand in hand.. It's a normal thingy which we have already discussed here. The cash flow is what will be increased via the tenor concessions.. And that is a very good thing... As for bank debt to equity position, soma hii link along with the cautionary statement http://mobile.reuters.com/article/idUSKBN1962OA
The $225m for local banks will be converted to equity and then the deal appears for them to exit through open market. In the event that they are unable to exit and recover their money within the set timelines because of share price not recovering sufficiently then the government has to step in and compensate. And in the unlikely event that KQ folds then the Government wires capital + interest. @actuary seems @Ericsson did not go to school.. Could we team up and send the guy for gumbaru Kweli sikwenda shule. Tafakari haya basi "KQ, as it is known by its international code, secured House approval that will see the Treasury guarantee long-term loans that the airline owes the US Exim Bank ($525 million) and local lenders ($225 million). These guarantees are being made in exchange for “material concessions” that include an extension of debt tenors, which will improve the airline’s repayment obligations." http://www.businessdaily...76768-cxrmd3/index.html
@ericsson learn to listen to people who know what is happening.. KQ Lenders Co. LTD registered on 09.06.2017 shall now be a KQ shareholder. Total shares issued now rises to 29.9B.. Conversion price KES 2.13.. The same occurring via a share split and eventual consolidation with a factor of 1:4, resulting in 7.4B final listed shares. I await the Open Offer of 1.5B whose price the exchange bar notes has been agreed in principle to fall below KES 1.6.. There is no rights option so indeed I will buy to mitigate dilution of 95.5%, noting that the KQ Lenders Co Ltd, GoK & KLM will not participate in the issue. GoK now holds 45% of KQ.. KLM founding agreement of 1995 abolished. KQ now in positive equity of KES 11.5B. Sit tight Which means my prophecy of 2/ bob is already smashed! Please read the circular to understand the basis of arrival at KES 2.13. Its not as simple as you imagine, but definitely tomorrow the share may tank due to similar misunderstanding by Wanjiku. Meanwhile, the EGM will obviously approve the Open Offer on 07.08.2017. Plain calculations show that the fair value post-consolidation in a ratio of 1:4, to be KES 8.5 per KQ share, down from previous fair value of KES 10; still, PJT Partners, MJ, MN & SM have done a splendid job in the capital restructure.. Hats off I think @obiero you're being relieved by the act of consolidation. The 2bob prophecy applies to debt conversion only before consolidation .....not to every shareholder including oKQiero....Sit tight and wait for a take off... I hastily forgive you as you do not know what you are saying.. Watch and learn. Only the liquid will survive.
KQ ABP 4.26
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Rank: Elder Joined: 6/23/2009 Posts: 14,213 Location: nairobi
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omega wrote:sparkly wrote:omega wrote:obiero wrote:@ the exchange bar.. word is out; 7.8B new shares needed to cover 48B conversion of GoK and financiers debt at KES 25B & 23B, respectively.. Share price agreed between parties for purchase is KES 7.2.. Fundamentally, KQ has obtained a new lease of life. Due to this fact, National Assembly has agreed to pass the Sessional Paper 3 in Wednesday's sitting. I sit tight, noting that in stock investment you must be prepared mentally to loose everything or gain it all.. 7.8B plus the current issued shares (1.5B) comes to 9.3B. If we use a profit after tax of 3.5B (2011), which is best result that KQ has managed in the last ten years, then the EPS would be 0.38. With a generous PE of 10, it would then trade at ksh 3.8 per share. Given the full recovery is a way off, I wouldn't be surprised if KQ traded at below ksh 2 per share. What if we use KQ's current operating profit without finance costs? That would be a disaster as 2017 operating profit was 897 M. That's an EPS of .096 (.897/9.3). I am being generous with 2011 financial results. Push has come to shove.. Post consolidation, we end up with 7.4B new shares, as expected; awaiting the Open Offer allocation that will run closing figure to circa 9.3B shares. Minimum new share price KES 7.5
KQ ABP 4.26
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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obiero wrote:Spikes wrote:obiero wrote:Spikes wrote:obiero wrote:Ericsson wrote:obiero wrote:actuarywahisa wrote:obiero wrote:Ericsson wrote:
Kq is still in negative equity. Government loans amounting to $243mn is what will be converted to equity.
$525mn owed to US Exim Bank and $225mn owed to local lenders will have to be repaid with GOK acting as guarantor.
Local lenders/banks will not own any stake in KQ.
You could be right and that would imply less dilution.. Meanwhile, airlines and negative equity go hand in hand.. It's a normal thingy which we have already discussed here. The cash flow is what will be increased via the tenor concessions.. And that is a very good thing... As for bank debt to equity position, soma hii link along with the cautionary statement http://mobile.reuters.com/article/idUSKBN1962OA
The $225m for local banks will be converted to equity and then the deal appears for them to exit through open market. In the event that they are unable to exit and recover their money within the set timelines because of share price not recovering sufficiently then the government has to step in and compensate. And in the unlikely event that KQ folds then the Government wires capital + interest. @actuary seems @Ericsson did not go to school.. Could we team up and send the guy for gumbaru Kweli sikwenda shule. Tafakari haya basi "KQ, as it is known by its international code, secured House approval that will see the Treasury guarantee long-term loans that the airline owes the US Exim Bank ($525 million) and local lenders ($225 million). These guarantees are being made in exchange for “material concessions” that include an extension of debt tenors, which will improve the airline’s repayment obligations." http://www.businessdaily...76768-cxrmd3/index.html
@ericsson learn to listen to people who know what is happening.. KQ Lenders Co. LTD registered on 09.06.2017 shall now be a KQ shareholder. Total shares issued now rises to 29.9B.. Conversion price KES 2.13.. The same occurring via a share split and eventual consolidation with a factor of 1:4, resulting in 7.4B final listed shares. I await the Open Offer of 1.5B whose price the exchange bar notes has been agreed in principle to fall below KES 1.6.. There is no rights option so indeed I will buy to mitigate dilution of 95.5%, noting that the KQ Lenders Co Ltd, GoK & KLM will not participate in the issue. GoK now holds 45% of KQ.. KLM founding agreement of 1995 abolished. KQ now in positive equity of KES 11.5B. Sit tight Which means my prophecy of 2/ bob is already smashed! Please read the circular to understand the basis of arrival at KES 2.13. Its not as simple as you imagine, but definitely tomorrow the share may tank due to similar misunderstanding by Wanjiku. Meanwhile, the EGM will obviously approve the Open Offer on 07.08.2017. Plain calculations show that the fair value post-consolidation in a ratio of 1:4, to be KES 8.5 per KQ share, down from previous fair value of KES 10; still, PJT Partners, MJ, MN & SM have done a splendid job in the capital restructure.. Hats off I think @obiero you're being relieved by the act of consolidation. The 2bob prophecy applies to debt conversion only before consolidation .....not to every shareholder including oKQiero....Sit tight and wait for a take off... I hastily forgive you as you do not know what you are saying.. Watch and learn. Only the liquid will survive. @ 0biero are you truly liquid? John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Elder Joined: 6/23/2009 Posts: 14,213 Location: nairobi
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Spikes wrote:obiero wrote:Spikes wrote:obiero wrote:Spikes wrote:obiero wrote:Ericsson wrote:obiero wrote:actuarywahisa wrote:obiero wrote:Ericsson wrote:
Kq is still in negative equity. Government loans amounting to $243mn is what will be converted to equity.
$525mn owed to US Exim Bank and $225mn owed to local lenders will have to be repaid with GOK acting as guarantor.
Local lenders/banks will not own any stake in KQ.
You could be right and that would imply less dilution.. Meanwhile, airlines and negative equity go hand in hand.. It's a normal thingy which we have already discussed here. The cash flow is what will be increased via the tenor concessions.. And that is a very good thing... As for bank debt to equity position, soma hii link along with the cautionary statement http://mobile.reuters.com/article/idUSKBN1962OA
The $225m for local banks will be converted to equity and then the deal appears for them to exit through open market. In the event that they are unable to exit and recover their money within the set timelines because of share price not recovering sufficiently then the government has to step in and compensate. And in the unlikely event that KQ folds then the Government wires capital + interest. @actuary seems @Ericsson did not go to school.. Could we team up and send the guy for gumbaru Kweli sikwenda shule. Tafakari haya basi "KQ, as it is known by its international code, secured House approval that will see the Treasury guarantee long-term loans that the airline owes the US Exim Bank ($525 million) and local lenders ($225 million). These guarantees are being made in exchange for “material concessions” that include an extension of debt tenors, which will improve the airline’s repayment obligations." http://www.businessdaily...76768-cxrmd3/index.html
@ericsson learn to listen to people who know what is happening.. KQ Lenders Co. LTD registered on 09.06.2017 shall now be a KQ shareholder. Total shares issued now rises to 29.9B.. Conversion price KES 2.13.. The same occurring via a share split and eventual consolidation with a factor of 1:4, resulting in 7.4B final listed shares. I await the Open Offer of 1.5B whose price the exchange bar notes has been agreed in principle to fall below KES 1.6.. There is no rights option so indeed I will buy to mitigate dilution of 95.5%, noting that the KQ Lenders Co Ltd, GoK & KLM will not participate in the issue. GoK now holds 45% of KQ.. KLM founding agreement of 1995 abolished. KQ now in positive equity of KES 11.5B. Sit tight Which means my prophecy of 2/ bob is already smashed! Please read the circular to understand the basis of arrival at KES 2.13. Its not as simple as you imagine, but definitely tomorrow the share may tank due to similar misunderstanding by Wanjiku. Meanwhile, the EGM will obviously approve the Open Offer on 07.08.2017. Plain calculations show that the fair value post-consolidation in a ratio of 1:4, to be KES 8.5 per KQ share, down from previous fair value of KES 10; still, PJT Partners, MJ, MN & SM have done a splendid job in the capital restructure.. Hats off I think @obiero you're being relieved by the act of consolidation. The 2bob prophecy applies to debt conversion only before consolidation .....not to every shareholder including oKQiero....Sit tight and wait for a take off... I hastily forgive you as you do not know what you are saying.. Watch and learn. Only the liquid will survive. @ 0biero are you truly liquid? No. I'm actually an inmate posting from Kamiti Maximum
KQ ABP 4.26
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Rank: Elder Joined: 6/23/2009 Posts: 14,213 Location: nairobi
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To discuss this thing with an educated mind, let us read the 41 page KQ Project Safari circular
KQ ABP 4.26
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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KQ's Wanjiku sacred to death.... ! John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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