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VituVingiSana
#1571 Posted : Friday, April 08, 2011 10:49:55 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,371
Location: Nairobi
stocksmaster wrote:
VituVingiSana wrote:
youcan'tstopusnow wrote:
nahdy wrote:
http://www.nse.co.ke/newsite/pdf/YEAR%202011/Announcements/KenolKobil.pdf

eeh!!!! the guy is loaded....

He's in just in time for the ESOPsmile
Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly


@ VVS: You must have received the 2010 Kenol Kobil Ltd Annual Report and Financial Statements. What do you think of Page 35 - Employee Benefits (Share Options): KK has an options agreement with the CEO under which he is entitled to receive options for units amounting to 4% of the company's shares in respect of the financial years 2010-2014 to be issued on or about 1st May 2011.Also read page 52.
J. Segman will receive about 71M of the newly created 300M ESOP shares.

Positives:
Another James Mwangi being created at KK (expect the KK CEO to utilise every opportunity to play up the share price).
Serious motivation for the CEO to return above average performance.

Happy Hunting
Yes, I am digesting it. I would like more info esp on the vesting but I agree with you!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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the deal
#1572 Posted : Friday, April 08, 2011 10:59:33 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
@Forsport power corrupts...Mugabe started out as a good guy...today he is a villain...all i'm saying is in terms of governance the Esop is not good for KK...JIS is brilliant but wat if looses his way KK will go down with him.
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stocksmaster
#1573 Posted : Friday, April 08, 2011 11:05:59 AM
Rank: Member

Joined: 9/26/2006
Posts: 463
Location: CENTRAL PROVINCE
For Sport wrote:
the deal wrote:
@forsport JIS is now chairman...CEO...Top 10 shareholder...even PRO...even JM at EB is not Chairman...this is so typical of the Mugabes of Africa


@ the deal
bear with me. genuine question - does this adversely affect my position; or will my fortune rise with his?


@ For Sport:
Short term - You are facing about 10%dilution (it should be about 17% dilution but you have to factor in that via the ESOP, the employees get the shares at about 50-60% of prevailing price).
Long term:The ESOP will act as a motivator for the employees to return above average performance since they will be major stakeholders in the business.

Thus, if buying KK for short term (less than 1yr), it would be prudent not to buy coz of the dilution. However, if you can wait until 2014 when Segman will have received all his 71M KK shares, the share price should be hovering in the 30-40 range with an EPS in the range of Ksh 3.5 - 4.0.

Happy hunting.
x handle: @stocksmaster79
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VituVingiSana
#1574 Posted : Friday, April 08, 2011 11:56:30 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,371
Location: Nairobi
@stocksmaster - I am not sure what the exercise price for the options is but 60% of current price would be very cheap!

I think it might be in term of 'options' that they can exercise i.e. whether the price is 10 or 15 or 20 in future years the ESOP will buy them at 9.70...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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For Sport
#1575 Posted : Friday, April 08, 2011 12:06:48 PM
Rank: Veteran

Joined: 12/23/2010
Posts: 1,229
Stockmaster, thanks !!
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2012
#1576 Posted : Friday, April 08, 2011 12:41:31 PM
Rank: Elder

Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
VituVingiSana wrote:
I think it might be in term of 'options' that they can exercise i.e. whether the price is 10 or 15 or 20 in future years the ESOP will buy them at 9.70...


And why would one buy them currently and get locked in for years while he/she can buy off the market? I think @stocksmaster is right, they have to subsidize for employees. I personally don't see the ESOP as a threat, I think it's great, employees will take ownership knowing that their share value is directly proportional to their input.

BBI will solve it :)
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For Sport
#1577 Posted : Friday, April 08, 2011 1:11:51 PM
Rank: Veteran

Joined: 12/23/2010
Posts: 1,229
the deal wrote:
@Forsport power corrupts...Mugabe started out as a good guy...today he is a villain...all i'm saying is in terms of governance the Esop is not good for KK...JIS is brilliant but wat if looses his way KK will go down with him.


True but i dont think he'd do anything to jeopardize his stake in the company. I wouldnt mind an MD with something to lose if things go wrong.
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VituVingiSana
#1578 Posted : Friday, April 08, 2011 1:17:04 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,371
Location: Nairobi
2012 wrote:
VituVingiSana wrote:
I think it might be in term of 'options' that they can exercise i.e. whether the price is 10 or 15 or 20 in future years the ESOP will buy them at 9.70...


And why would one buy them currently and get locked in for years while he/she can buy off the market? I think @stocksmaster is right, they have to subsidize for employees. I personally don't see the ESOP as a threat, I think it's great, employees will take ownership knowing that their share value is directly proportional to their input.
@2012 - Erm, do you know what Call Options are? If not, please read up on them.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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cnn
#1579 Posted : Friday, April 08, 2011 1:34:47 PM
Rank: Veteran

Joined: 6/17/2009
Posts: 1,627
I agree with @vvs,the pricing cant be at such a huge discount,it would beat the purpose of the whole ESOP thing.The average price of the share over the last six months is more realistic.
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selah
#1580 Posted : Friday, April 08, 2011 1:41:23 PM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
The creation of new shares is a bit confusing 300M shares is for the ESOP[why didn't they just buy them straight from the bourse?] what abt the 200M share what do they intend to do with them[Future right issue or bonus shares? what else can they do with this extra shares]
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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