My 2 cents wrote:One suitor was actually Sudanese (one of the richest Africans I believe). My beef with Nakumatt is that they almost seem to fear going public. What are they hiding? I will never forget one year in which they paid KRA 60million in taxes while a struggling Uchumi paid over 500million. Do they fear that by going the IPO way they will have to lay their bare their books for scrutiny?
Nonsense (well, some of it)!
Going public has little to do with 'fear'. Many of the world's most successful firms are private coz they can make decisions independent of the (often) short-term needs/wishes of funds, etc. Some public firms controlled by individuals will also act (almost) private like Berkshire Hathaway.
Mars (the chocolate maker) is notoriously private as are many other mid-sized global firms... BTW, BH has an investment or deal with Mars...
What you need to ask is why do firms go public?
(BTW, Nakumatt was NOT going public but planned to raise cash thru a private placement) Are they raising cash? Do the shareholders want out? Price discovery?
On the taxes... Unless you have the detailed financial statements, I think you are blowing hot smoke! I am a fan of KenolKobil & they faced some criticism from some idiots regarding taxes, etc... I am a defender of private businesses vs the blood-suckers in GoK or its entities!
Profits are NOT equal to Revenue... A smart firm will avoid taxes by taking tax credits & investment allowances... Nakumatt unlike Uchumi has been going into locations OUTSIDE of Nairobi & Mombasa thus qualifying for these tax credits/allowances...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett