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Uchumi - A value play?
Rank: Member Joined: 8/6/2018 Posts: 292
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The retailer last week got a reprieve from the High Court, which marked an insolvency petition against Uchumi as settled and withdrawn following an out-of-court deal with suppliers. Part of the court rulling, Uchumi is to receive 70% discount on the outstanding liability of Ksh 4.7B...Meaning Uchumi supermarket to pay Ksh 1.4 B in 6 months(30% of the liability) and the rest spread as preference shares and discounted. Just coming at the right time when Tuskys is struggling and Shoprite and Choppies exiting Kenya
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Rank: Veteran Joined: 2/2/2012 Posts: 1,134 Location: Nairobi
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Uchumi Supermarkets given 6 months to pay 4.7 billion..... https://www.nation.co.ke...-pay-4-7-billion-1445522
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Rank: Veteran Joined: 2/2/2012 Posts: 1,134 Location: Nairobi
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Na kuna watu bado wananunua hii kitu?
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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KaunganaDoDo wrote:The retailer last week got a reprieve from the High Court, which marked an insolvency petition against Uchumi as settled and withdrawn following an out-of-court deal with suppliers. Part of the court rulling, Uchumi is to receive 70% discount on the outstanding liability of Ksh 4.7B...Meaning Uchumi supermarket to pay Ksh 1.4 B in 6 months(30% of the liability) and the rest spread as preference shares and discounted. Just coming at the right time when Tuskys is struggling and Shoprite and Choppies exiting Kenya Quickmart will decimate it Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 8/6/2018 Posts: 292
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[quote=chiaroscuro]Uchumi Supermarkets given 6 months to pay 4.7 billion..... https://www.nation.co.ke...pay-4-7-billion-1445522[/quote] Nation Newspaper also got it wrong. Its the 30%of the 4.7B.
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Rank: Member Joined: 8/6/2018 Posts: 292
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chiaroscuro wrote:Na kuna watu bado wananunua hii kitu? Ask yourself why its still trading... while Guys like Deacons,ARM,Mumias and KQ are all down? They have cleaned their balance sheet with this restructuring...Its now System Go... plus this restructuring was the condition precedent for New Foreign Equity Partners
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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Uchumi will bounce back...their branches have been buying fast moving goods on cash basis from suppliers p/s - I am one of the supplier
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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FUNKY wrote:Uchumi will bounce back...their branches have been buying fast moving goods on cash basis from suppliers p/s - I am one of the supplier The former customer of uchumi moved on Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,054 Location: Nairobi
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KaunganaDoDo wrote:chiaroscuro wrote:Na kuna watu bado wananunua hii kitu? Ask yourself why its still trading... while Guys like Deacons,ARM,Mumias and KQ are all down? They have cleaned their balance sheet with this restructuring...Its now System Go... plus this restructuring was the condition precedent for New Foreign Equity Partners Government/Taxpayer bailout. EAPCC and Mumias are other zombies. As was NBK. And KQ. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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VituVingiSana wrote:KaunganaDoDo wrote:chiaroscuro wrote:Na kuna watu bado wananunua hii kitu? Ask yourself why its still trading... while Guys like Deacons,ARM,Mumias and KQ are all down? They have cleaned their balance sheet with this restructuring...Its now System Go... plus this restructuring was the condition precedent for New Foreign Equity Partners Government/Taxpayer bailout. EAPCC and Mumias are other zombies. As was NBK. And KQ. Treasury should allow EAPCC be swallowed by Bamburi cement Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 8/6/2018 Posts: 292
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Ericsson wrote:FUNKY wrote:Uchumi will bounce back...their branches have been buying fast moving goods on cash basis from suppliers p/s - I am one of the supplier The former customer of uchumi moved on Supermarket is Brand Name and Cashflow... Customers never Move... They just need sustainable cash flow
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Rank: Chief Joined: 1/3/2007 Posts: 18,054 Location: Nairobi
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Ericsson wrote:VituVingiSana wrote:KaunganaDoDo wrote:chiaroscuro wrote:Na kuna watu bado wananunua hii kitu? Ask yourself why its still trading... while Guys like Deacons,ARM,Mumias and KQ are all down? They have cleaned their balance sheet with this restructuring...Its now System Go... plus this restructuring was the condition precedent for New Foreign Equity Partners Government/Taxpayer bailout. EAPCC and Mumias are other zombies. As was NBK. And KQ. Treasury should allow EAPCC be swallowed by Bamburi cement True but guys in GoK want to kula the land. Bamburi has no use for the antique machinery. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:KaunganaDoDo wrote:chiaroscuro wrote:Na kuna watu bado wananunua hii kitu? Ask yourself why its still trading... while Guys like Deacons,ARM,Mumias and KQ are all down? They have cleaned their balance sheet with this restructuring...Its now System Go... plus this restructuring was the condition precedent for New Foreign Equity Partners Government/Taxpayer bailout. EAPCC and Mumias are other zombies. As was NBK. And KQ. Treasury should allow EAPCC be swallowed by Bamburi cement True but guys in GoK want to kula the land. Bamburi has no use for the antique machinery. The limestone and the market share Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 8/6/2018 Posts: 292
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VituVingiSana wrote:KaunganaDoDo wrote:chiaroscuro wrote:Na kuna watu bado wananunua hii kitu? Ask yourself why its still trading... while Guys like Deacons,ARM,Mumias and KQ are all down? They have cleaned their balance sheet with this restructuring...Its now System Go... plus this restructuring was the condition precedent for New Foreign Equity Partners Government/Taxpayer bailout. EAPCC and Mumias are other zombies. As was NBK. And KQ. Government bailout is necessary but not sufficient.... Even Mumias has Government support.... what matter is the extent of the Hole...How deep is it.... Giants like KQ and Portland Cement and Mumias will slumber half awake as they walk while Agile small firms like Uchumi will Rise up quickly
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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KaunganaDoDo wrote:VituVingiSana wrote:KaunganaDoDo wrote:chiaroscuro wrote:Na kuna watu bado wananunua hii kitu? Ask yourself why its still trading... while Guys like Deacons,ARM,Mumias and KQ are all down? They have cleaned their balance sheet with this restructuring...Its now System Go... plus this restructuring was the condition precedent for New Foreign Equity Partners Government/Taxpayer bailout. EAPCC and Mumias are other zombies. As was NBK. And KQ. Government bailout is necessary but not sufficient.... Even Mumias has Government support.... what matter is the extent of the Hole...How deep is it.... Giants like KQ and Portland Cement and Mumias will slumber half awake as they walk while Agile small firms like Uchumi will Rise up quickly The hole in uchumi is bigger than in EAPCC Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,054 Location: Nairobi
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KaunganaDoDo wrote:VituVingiSana wrote:KaunganaDoDo wrote:chiaroscuro wrote:Na kuna watu bado wananunua hii kitu? Ask yourself why its still trading... while Guys like Deacons,ARM,Mumias and KQ are all down? They have cleaned their balance sheet with this restructuring...Its now System Go... plus this restructuring was the condition precedent for New Foreign Equity Partners Government/Taxpayer bailout. EAPCC and Mumias are other zombies. As was NBK. And KQ. Government bailout is necessary but not sufficient.... Even Mumias has Government support.... what matter is the extent of the Hole...How deep is it.... Giants like KQ and Portland Cement and Mumias will slumber half awake as they walk while Agile small firms like Uchumi will Rise up quickly Bailouts simply postpone the inevitable at Taxpayers expense. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 8/6/2018 Posts: 292
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Ericsson wrote:KaunganaDoDo wrote:VituVingiSana wrote:KaunganaDoDo wrote:chiaroscuro wrote:Na kuna watu bado wananunua hii kitu? Ask yourself why its still trading... while Guys like Deacons,ARM,Mumias and KQ are all down? They have cleaned their balance sheet with this restructuring...Its now System Go... plus this restructuring was the condition precedent for New Foreign Equity Partners Government/Taxpayer bailout. EAPCC and Mumias are other zombies. As was NBK. And KQ. Government bailout is necessary but not sufficient.... Even Mumias has Government support.... what matter is the extent of the Hole...How deep is it.... Giants like KQ and Portland Cement and Mumias will slumber half awake as they walk while Agile small firms like Uchumi will Rise up quickly The hole in uchumi is bigger than in EAPCC How? Liabilities of 4.7 against asset base of around 3.2B....this what was presented to the court...And now 30% of the liabilities is now noncumulative preference shares while the 40% is discounted offbalance sheet .......do the Maths...vis a is EAPC
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Rank: Member Joined: 8/6/2018 Posts: 292
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VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:KaunganaDoDo wrote:chiaroscuro wrote:Na kuna watu bado wananunua hii kitu? Ask yourself why its still trading... while Guys like Deacons,ARM,Mumias and KQ are all down? They have cleaned their balance sheet with this restructuring...Its now System Go... plus this restructuring was the condition precedent for New Foreign Equity Partners Government/Taxpayer bailout. EAPCC and Mumias are other zombies. As was NBK. And KQ. Treasury should allow EAPCC be swallowed by Bamburi cement True but guys in GoK want to kula the land. Bamburi has no use for the antique machinery. Guys in GoK want to eat EAPC land. I met former board chairman Bill Lay in 2018 kwa SGR to Voi....he said EAPC land was target for Rift valley politicians. Murky Boundaries
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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KaunganaDoDo wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:KaunganaDoDo wrote:chiaroscuro wrote:Na kuna watu bado wananunua hii kitu? Ask yourself why its still trading... while Guys like Deacons,ARM,Mumias and KQ are all down? They have cleaned their balance sheet with this restructuring...Its now System Go... plus this restructuring was the condition precedent for New Foreign Equity Partners Government/Taxpayer bailout. EAPCC and Mumias are other zombies. As was NBK. And KQ. Treasury should allow EAPCC be swallowed by Bamburi cement True but guys in GoK want to kula the land. Bamburi has no use for the antique machinery. Guys in GoK want to eat EAPC land. I met former board chairman Bill Lay in 2018 kwa SGR to Voi....he said EAPC land was target for Rift valley politicians. Murky Boundaries EAPCC topic will continue in the EAPCC thread. I don't see how the fourth life/phase of Uchumi will be able to compete with the likes of Naivas,Carrefour and Quickmart. The prime locations it used to occupy have all been taken up. Then there is the issue of a tainted reputation which will be hard to convince the customers it has changed. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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Ericsson wrote:KaunganaDoDo wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:KaunganaDoDo wrote:chiaroscuro wrote:Na kuna watu bado wananunua hii kitu? Ask yourself why its still trading... while Guys like Deacons,ARM,Mumias and KQ are all down? They have cleaned their balance sheet with this restructuring...Its now System Go... plus this restructuring was the condition precedent for New Foreign Equity Partners Government/Taxpayer bailout. EAPCC and Mumias are other zombies. As was NBK. And KQ. Treasury should allow EAPCC be swallowed by Bamburi cement True but guys in GoK want to kula the land. Bamburi has no use for the antique machinery. Guys in GoK want to eat EAPC land. I met former board chairman Bill Lay in 2018 kwa SGR to Voi....he said EAPC land was target for Rift valley politicians. Murky Boundaries EAPCC topic will continue in the EAPCC thread. I don't see how the fourth life/phase of Uchumi will be able to compete with the likes of Naivas,Carrefour and Quickmart. The prime locations it used to occupy have all been taken up. Then there is the issue of a tainted reputation which will be hard to convince the customers it has changed. They should run it just long enough to clear out with the creditors to an acceptable margin, then wind up
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Uchumi - A value play?
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