selah wrote:@agra RVR is a very good cash cow if well managed TCL and citandel might turn around this company and I see a bright future if its well managed.
TCL has invested in I think Helios a very successful african fund not forgetting their investments in engineering sectors i.e electrical items like transformers and conductors.
I presume the reason they are listing might, apart from raising funds, help existing shareholders with an avenue to exit the business whenever they feel like it, case in point the family of the director who passed away last year might want to divest from the company so the best way the family can get a true value of the shareholding is thru the NSE.
Is the company raising capital by issuing new capital or are existing shareholders selling some of their shares?
I think its the latter, I may be wrong.
If indeed shareholders are "selling" and thus diluting their shareholding,
do I want to get in when they are getting out?
Which shareholders are cashing in?
What amounts respectively?
Why?
Maybe the business may loose some GoK goodwill whe Kibaki retires... how much, I don't know.
If it is mostly the family of the late Chairman James Gachui then fine... still that is not a good reason to list... the other wazees can more easily raise the capital (to pay out Gachui's beneficiaries) themselves or let in private investors into the "cash cow". I'm sure if they wanted they could get one or two billionaires from their social circles to get in... Jimnah Mbaru is an Investment Banker!!!!!
On the flip side taxes for public companies are lower so i guess that is incentive.
I cannot discount @erifloss's dire opinion... infact I agree with him... this one smells fishy... these guys need to do a press release after that post
!
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