It's 6.94x EBITDA (Pg 124)

Centum has a 27.62 per cent stake in Nairobi Bottlers — which it says accounts for half of Coca-Cola branded sodas sold in the Kenyan market.

Its shares in the four Coca-Cola bottling companies represented 28 per cent of its assets and contributed 20 per cent of its profit and two per cent of the cash flow in the year to March 2012.

The merged unit will become the second largest in market share among the Coca-Cola bottlers in Kenya with 29 per cent, behind Nairobi Bottlers which controls 48 per cent of the market.

Coast Bottlers has 11 per cent market share, Equator 12 per cent, Kisii nine per cent while Rift Valley and Mt Kenya control 10 per cent each.

https://www.businessdail...73482-10pvarx/index.html

I do not know
Questions:
Are Almasi sales still growing? Have they mentioned what % growth they expect?
Do you think Centum's controlling stake could attract a premium?

Rubis is buying KK at a FY18 PER of 11x
Seaboard bought Unga shares at FY17 PER of 7x
Any other FMCG PERs?

Year end is dec

So there was a drop in profits from FY16. Alana’s I shares are hard to come by.

If you look at non-listed firms, they don’t sugar coat their prospects (except Cytonn 😆) there is also no mention of what they expect to grow at. I don’t think Centum would sell these shares if anything they are on accumulate mode unless a really juicy offer came along. What Centum have done pricing these may be acceptable in accounting but is this the most conservative method of valuation? In my opinion you price your assets based on worst case scenario not on best case that’s being conservative. Or if they have sold shares on that price or is the market or OTC price then it makes sense in my books. Since it’s a subsidiary should NAV of Almasi be taken as exactly that? I don’t know what do the accountants reckon?

The worst case scenario is ZERO.

All firms, in a worst case scenario, are valued at ZERO. There are no guarantees.
Safcom: A new invention that allows extremely cheap internet access. Or calls.
EABL: We become an islamic state.
Almasi: Folks decide to give up sugary drinks.

Back to Almasi and Centum. More research required given I am looking at Centum as a potential "Core Holding" [It's more complex given the multiple businesses and aggressive management]

YES. It's the 28/- that's attractive. Even if I deducted 20% from 73 = 57 this is 50% PB.

It's too soon to buy Centum as a Core Holding BUT never too soon to start researching Centum.
And if Rubis backs out, then no more Centum.

Others that look attractive to me include Saf, more I&M and more Equity. I just don't want 2 banks as "Core"
One can't trust this government's knee-jerk policies.

KenRe - Replacing Mwarania overnight
Unga - Maize drama
Banks - Rate Cap, CBK "enforcement" and demonization
Agriculture - Extortion at the county level
Fuel - Taxes and more taxes

@Horton - Thanks
@Ericsson - Thanks

Thanks! Are you with Centum? Or a broker? I will sign up for the CC

Skin in the game ..... overrated?

So the last couple of firms to go down the dark road ARM & DEACONS CEOs both had skin in the game. Is this trait overrated?