Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi
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mulla wrote:Gatheuzi wrote:I primarily invest for dividends and with no immediate plan to sell. So when faced with a takeover, this distorts my plans since I have to re-invest the proceeds. If KK was to be here for long and pay increasing dividends over time, the benefits far out way the premiums being offered today (23/=).
I think I have no choice but to take the offer given that the Frenchmen have even indicated that they will not continue with the current generous dividend policy that KK was pursuing.
The other consideration is; what was the impact of them buying a clean KK that just recently make major write offs of Segman payments, KPRL's account owing, long standing legal settlement in H1 and so on? Doesn't this obviously mean that future benefits of a cleaner balance sheet will not accrue to current shareholders, which is not a great at all?
As someone mentioned the number of investible firms in NSE continue to diminish and we will perhaps only be left with banks, Safaricom and a few other well run firms.
Like any big business deal such as this one the talks must had been going on for a long time and these must have been conditions set for a takeover. Also explains the going ons towards the public announcement like why Ohana exercised his share options. Having said that as i grow in investing i come to appreciate with gatheuzi,VVS about investing in 'strong transparent' companies with good dividend payouts, and invest long term without ever having thinking of selling, without ever having to look at stock prices daily, as you have confidence in the companies you have invested in and small shocks will not shake you. Though Warren Buffet doesnt necessarily go for dividend payout provided the company is strong,transparent,growing and is being sold at a good value. My investment strategy has been mainly capital gains of >50% then sell. I held alot of KK, tens of thousands, and sold one year ago cause of 70% capital gain. No other reason at all for selling like 'i needed the money or i had lost confidence in the company'. I dont regret selling as that has been a lesson learnt. Investing in companies because they are cheap, example Mumias,Uchumi,HA etc, yet the companies are in financial distress and are not growing etc, is not an investment strategy.  I learnt that lesson in KQ. I sold my shares in 2012 at 13-14 and went into KenRe and KK. KK - Dividends + Price Appreciation + Takeover + Good Management KenRe - Dividends + (smaller) Price Appreciation [but good growth in Shareholder Funds and I will wait] + Good Management for now Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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