Wazua
»
Investor
»
Stocks
»
Kenya Airways...why ignore..
Rank: Veteran Joined: 2/2/2012 Posts: 1,134 Location: Nairobi
|
VituVingiSana wrote:So I understand this... [Purely for curiosity and not as an investment]
For minority shareholders:
KQ will issue 19 deferred (useless) shares for each existing share.
KQ will then cancel the deferred shares post-restructuring.
KQ will then consolidate 4 of the existing KQ shares into 1
So a (minority) shareholder will 1,000 shares will end up with 250 shares. Current price 4.50 so a 4,500 (1,000 x 4.50) value today will be worth 2,130 (8.52 x 250) post-restructuring. These convoluted transactions never end well for investors!
|
|
|
Rank: Veteran Joined: 8/28/2015 Posts: 1,247
|
VituVingiSana wrote:So I understand this... [Purely for curiosity and not as an investment]
For minority shareholders:
KQ will issue 19 deferred (useless) shares for each existing share.
KQ will then cancel the deferred shares post-restructuring.
KQ will then consolidate 4 of the existing KQ shares into 1with a nomial value of 1bob all the way from 5*4
So a (minority) shareholder will 1,000 shares will end up with 250 shares. Current price 4.50 so a 4,500 (1,000 x 4.50) value today will be worth 2,130 (8.52 x 250) post-restructuring. @vvs, point on. I have made xtimes attempts to put this to light but vehement prayers of @obiero saw all my well wrote posts flops. This co will be worth only the injected capital to minority shareholders plus a minis-cue of the itch the gova would suffer for loss of its strategic interests. the rest is panganga ,Behold, a sower went forth to sow;....
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
|
muandiwambeu wrote:VituVingiSana wrote:So I understand this... [Purely for curiosity and not as an investment]
For minority shareholders:
KQ will issue 19 deferred (useless) shares for each existing share.
KQ will then cancel the deferred shares post-restructuring.
KQ will then consolidate 4 of the existing KQ shares into 1with a nomial value of 1bob all the way from 5*4
So a (minority) shareholder will 1,000 shares will end up with 250 shares. Current price 4.50 so a 4,500 (1,000 x 4.50) value today will be worth 2,130 (8.52 x 250) post-restructuring. @vvs, point on. I have made xtimes attempts to put this to light but vehement prayers of @obiero saw all my well wrote posts flops. This co will be worth only the injected capital to minority shareholders plus a minis-cue of the itch the gova would suffer for loss of its strategic interests. the rest is panganga @vvs ametumwa?? where's the Open Offer option in your projection
KQ ABP 4.26
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi
|
obiero wrote:muandiwambeu wrote:VituVingiSana wrote:So I understand this... [Purely for curiosity and not as an investment]
For minority shareholders:
KQ will issue 19 deferred (useless) shares for each existing share.
KQ will then cancel the deferred shares post-restructuring.
KQ will then consolidate 4 of the existing KQ shares into 1with a nomial value of 1bob all the way from 5*4
So a (minority) shareholder will 1,000 shares will end up with 250 shares. Current price 4.50 so a 4,500 (1,000 x 4.50) value today will be worth 2,130 (8.52 x 250) post-restructuring. @vvs, point on. I have made xtimes attempts to put this to light but vehement prayers of @obiero saw all my well wrote posts flops. This co will be worth only the injected capital to minority shareholders plus a minis-cue of the itch the gova would suffer for loss of its strategic interests. the rest is panganga @vvs ametumwa?? where's the Open Offer option in your projection Please explain how the Open Offer will work for the MINORITY shareholders. If the MINORITY shareholders pay 2.13/pre-consolidation share then isn't is the same as 8.52/post-consolidation share? If I chose to "gamble" on KQ, I would buy the pre-consolidation shares at 2.13 instead of those at 4.50 (as traded on the market). I wish other suppliers e.g. Rugendo [Pick 'n Peel] were also forced to take shares instead of being paid off in cash! After all, the more suppliers who are shareholders, the better off KQ is since there's better corporate governance and the need for cash(flow) reduces. BTW, I wish KQ the best so that @VVS (Taxpayer) stops subsidizing KQ! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
|
Am glad I got my haircut at kes 4.60. I will be back sub 2 bob. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
|
VituVingiSana wrote:obiero wrote:muandiwambeu wrote:VituVingiSana wrote:So I understand this... [Purely for curiosity and not as an investment]
For minority shareholders:
KQ will issue 19 deferred (useless) shares for each existing share.
KQ will then cancel the deferred shares post-restructuring.
KQ will then consolidate 4 of the existing KQ shares into 1with a nomial value of 1bob all the way from 5*4
So a (minority) shareholder will 1,000 shares will end up with 250 shares. Current price 4.50 so a 4,500 (1,000 x 4.50) value today will be worth 2,130 (8.52 x 250) post-restructuring. @vvs, point on. I have made xtimes attempts to put this to light but vehement prayers of @obiero saw all my well wrote posts flops. This co will be worth only the injected capital to minority shareholders plus a minis-cue of the itch the gova would suffer for loss of its strategic interests. the rest is panganga @vvs ametumwa?? where's the Open Offer option in your projection Please explain how the Open Offer will work for the MINORITY shareholders. If the MINORITY shareholders pay 2.13/pre-consolidation share then isn't is the same as 8.52/post-consolidation share? If I chose to "gamble" on KQ, I would buy the pre-consolidation shares at 2.13 instead of those at 4.50 (as traded on the market). I wish other suppliers e.g. Rugendo [Pick 'n Peel] were also forced to take shares instead of being paid off in cash! After all, the more suppliers who are shareholders, the better off KQ is since there's better corporate governance and the need for cash(flow) reduces. BTW, I wish KQ the best so that @VVS (Taxpayer) stops subsidizing KQ! The Open Offer is only for the MINORITY shareholders since KQ Lenders Co Ltd, KLM, GoK and tentatively ESOP will sit it out as stated in the Project Safari circular. Now, for the minority shareholders, the Open Offer will be an invitation to reduce the dilution effects. In my view the tactics of deffered shares will not apply to the minority shareholders but rather an outright offer of 2:1 at KES 1.80 per new share.. With the nominal value of existing shares being the same as the post consolidation nominal share value of the majority shareholders
KQ ABP 4.26
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
|
chiaroscuro wrote:obiero wrote:Ericsson wrote:obiero wrote:Ericsson wrote:Share price facing downward pressure Downward pressure wapi jamaa And it came to pass KQ down 10 cents today Usizubae na hio 10 cents kaka.. This thing has been misunderstood by very many people and part of it links back to KQs board refusal to shed light on the book closure date for the Open Offer. Personally I believe that cartels may be allowed to sneak inside post restructuring and post consolidation ala Mobitelea. Notwithstanding KES 8.52 will be printed and shall be the new floor, with no upper LIMIT!!! 8.52 is far away from 4.65... something major needs to happen to support such a jump. So far, nothing is impending. This shall be a surprise move that will catch many flat footed.. 01.09.2017 is the new date to watch https://qz.com/1059396/k...ic-air-travel-in-africa/
KQ ABP 4.26
|
|
|
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
|
obiero wrote:VituVingiSana wrote:obiero wrote:muandiwambeu wrote:VituVingiSana wrote:So I understand this... [Purely for curiosity and not as an investment]
For minority shareholders:
KQ will issue 19 deferred (useless) shares for each existing share.
KQ will then cancel the deferred shares post-restructuring.
KQ will then consolidate 4 of the existing KQ shares into 1with a nomial value of 1bob all the way from 5*4
So a (minority) shareholder will 1,000 shares will end up with 250 shares. Current price 4.50 so a 4,500 (1,000 x 4.50) value today will be worth 2,130 (8.52 x 250) post-restructuring. @vvs, point on. I have made xtimes attempts to put this to light but vehement prayers of @obiero saw all my well wrote posts flops. This co will be worth only the injected capital to minority shareholders plus a minis-cue of the itch the gova would suffer for loss of its strategic interests. the rest is panganga @vvs ametumwa?? where's the Open Offer option in your projection Please explain how the Open Offer will work for the MINORITY shareholders. If the MINORITY shareholders pay 2.13/pre-consolidation share then isn't is the same as 8.52/post-consolidation share? If I chose to "gamble" on KQ, I would buy the pre-consolidation shares at 2.13 instead of those at 4.50 (as traded on the market). I wish other suppliers e.g. Rugendo [Pick 'n Peel] were also forced to take shares instead of being paid off in cash! After all, the more suppliers who are shareholders, the better off KQ is since there's better corporate governance and the need for cash(flow) reduces. BTW, I wish KQ the best so that @VVS (Taxpayer) stops subsidizing KQ! The Open Offer is only for the MINORITY shareholders since KQ Lenders Co Ltd, KLM, GoK and tentatively ESOP will sit it out as stated in the Project Safari circular. Now, for the minority shareholders, the Open Offer will be an invitation to reduce the dilution effects. In my view the tactics of deffered shares will not apply to the minority shareholders but rather an outright offer of 2:1 at KES 1.80 per new share.. With the nominal value of existing shares being the same as the post consolidation nominal share value of the majority shareholders All this flowerly language sprinkled with intelligent sounding financial jargon. Bottomline is that minority shareholders are f***ed a good one. They will not need another f*** for the next 20 years. Life is short. Live passionately.
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
|
sparkly wrote:obiero wrote:VituVingiSana wrote:obiero wrote:muandiwambeu wrote:VituVingiSana wrote:So I understand this... [Purely for curiosity and not as an investment]
For minority shareholders:
KQ will issue 19 deferred (useless) shares for each existing share.
KQ will then cancel the deferred shares post-restructuring.
KQ will then consolidate 4 of the existing KQ shares into 1with a nomial value of 1bob all the way from 5*4
So a (minority) shareholder will 1,000 shares will end up with 250 shares. Current price 4.50 so a 4,500 (1,000 x 4.50) value today will be worth 2,130 (8.52 x 250) post-restructuring. @vvs, point on. I have made xtimes attempts to put this to light but vehement prayers of @obiero saw all my well wrote posts flops. This co will be worth only the injected capital to minority shareholders plus a minis-cue of the itch the gova would suffer for loss of its strategic interests. the rest is panganga @vvs ametumwa?? where's the Open Offer option in your projection Please explain how the Open Offer will work for the MINORITY shareholders. If the MINORITY shareholders pay 2.13/pre-consolidation share then isn't is the same as 8.52/post-consolidation share? If I chose to "gamble" on KQ, I would buy the pre-consolidation shares at 2.13 instead of those at 4.50 (as traded on the market). I wish other suppliers e.g. Rugendo [Pick 'n Peel] were also forced to take shares instead of being paid off in cash! After all, the more suppliers who are shareholders, the better off KQ is since there's better corporate governance and the need for cash(flow) reduces. BTW, I wish KQ the best so that @VVS (Taxpayer) stops subsidizing KQ! The Open Offer is only for the MINORITY shareholders since KQ Lenders Co Ltd, KLM, GoK and tentatively ESOP will sit it out as stated in the Project Safari circular. Now, for the minority shareholders, the Open Offer will be an invitation to reduce the dilution effects. In my view the tactics of deffered shares will not apply to the minority shareholders but rather an outright offer of 2:1 at KES 1.80 per new share.. With the nominal value of existing shares being the same as the post consolidation nominal share value of the majority shareholders All this flowerly language sprinkled with intelligent sounding financial jargon. Bottomline is that minority shareholders are f***ed a good one. They will not need another f*** for the next 20 years. Hahaha.. Yenyewe the drop has been nerve wracking, but good thing is that KQ should not be trading at such levels with positive working capital, operating profit, revenue in excess of 100B.. And when the bottom line turns to black in the next few months, only Jesus knows how high we shall fly.. The share remains one that should not be traded by those of faint heart. Personally, I have said it here over and over, I am kamikaze on KQ
KQ ABP 4.26
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
|
obiero wrote:sparkly wrote:obiero wrote:VituVingiSana wrote:obiero wrote:muandiwambeu wrote:VituVingiSana wrote:So I understand this... [Purely for curiosity and not as an investment]
For minority shareholders:
KQ will issue 19 deferred (useless) shares for each existing share.
KQ will then cancel the deferred shares post-restructuring.
KQ will then consolidate 4 of the existing KQ shares into 1with a nomial value of 1bob all the way from 5*4
So a (minority) shareholder will 1,000 shares will end up with 250 shares. Current price 4.50 so a 4,500 (1,000 x 4.50) value today will be worth 2,130 (8.52 x 250) post-restructuring. @vvs, point on. I have made xtimes attempts to put this to light but vehement prayers of @obiero saw all my well wrote posts flops. This co will be worth only the injected capital to minority shareholders plus a minis-cue of the itch the gova would suffer for loss of its strategic interests. the rest is panganga @vvs ametumwa?? where's the Open Offer option in your projection Please explain how the Open Offer will work for the MINORITY shareholders. If the MINORITY shareholders pay 2.13/pre-consolidation share then isn't is the same as 8.52/post-consolidation share? If I chose to "gamble" on KQ, I would buy the pre-consolidation shares at 2.13 instead of those at 4.50 (as traded on the market). I wish other suppliers e.g. Rugendo [Pick 'n Peel] were also forced to take shares instead of being paid off in cash! After all, the more suppliers who are shareholders, the better off KQ is since there's better corporate governance and the need for cash(flow) reduces. BTW, I wish KQ the best so that @VVS (Taxpayer) stops subsidizing KQ! The Open Offer is only for the MINORITY shareholders since KQ Lenders Co Ltd, KLM, GoK and tentatively ESOP will sit it out as stated in the Project Safari circular. Now, for the minority shareholders, the Open Offer will be an invitation to reduce the dilution effects. In my view the tactics of deffered shares will not apply to the minority shareholders but rather an outright offer of 2:1 at KES 1.80 per new share.. With the nominal value of existing shares being the same as the post consolidation nominal share value of the majority shareholders All this flowerly language sprinkled with intelligent sounding financial jargon. Bottomline is that minority shareholders are f***ed a good one. They will not need another f*** for the next 20 years. Hahaha.. Yenyewe the drop has been nerve wracking, but good thing is that KQ should not be trading at such levels with positive working capital, operating profit, revenue in excess of 100B.. And when the bottom line turns to black in the next few months, only Jesus knows how high we shall fly.. The share remains one that should not be traded by those of faint heart. Personally, I have said it here over and over, I am kamikaze on KQ Eeeh eeeh KQ is the most indebted company second only to GoK. I would want to see how they will manage their debts Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Wazua
»
Investor
»
Stocks
»
Kenya Airways...why ignore..
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|