wukan wrote:watesh wrote:young wrote:REIT NOT LIKELY TO BE DELISTED AFTER ALL BECAUSE OF TAX BENEFIT TO INVESTEE COMPANY.
As per the latest cytonn report REIT will be of benefit to ICEA so it is almost out of question for it to be delisted.
Excerpts below :-
As for the approved Finance ACT 2019 amendment assented by the president, the income of REITs investee companies have been exempted from income tax and thus translates to higher profits from the investees
Previously only the income of REITs were exempt from corporate tax. This amendment aims at the flexibility of REITS in making investments and thus attract more investor interest in buying into the product.
https://cytonnreport.com...ts-report-2019#equities
This is a great incentive from GOK to the REIT market.
They might as well list a good portion of their properties under the REIT to enjoy the tax benefits
They have clarified their position. They don't need those properties in the REIT. They have way better prime real estate.
Quote:The transaction has sparked speculation that the Ndegwas could sell some of their buildings to the Reit in exchange for shares.
Others are assuming that the family could also buy out the property fund manager, which is trading at less than half of its net asset value per share of Sh20.2.
The Reit’s shares hit highs of Sh9 on Friday after the deal was announced.
Sources privy to the deal told the Business Daily that ICEA currently has no plans to acquire shares in the Reit.
“Buying or selling shares in the Reit is not part of this transaction,” a source said, adding that current owners including Stanlib (with a 10.2 percent stake) could still sell their holdings to any party in the future.
https://www.businessdail...4610-12nkq6d/index.html
Attached business daily report is ambiguous neither here nor there and therefore unsure of the true facts.
Read again line by line.
All information from business daily on this subject matter are mere speculation and hearsay.
That is why the author is using OTHERS ARE ASSUMING THAT and the phrase SOURCES PRIVY TO THE DEAL.......
The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .