Top Five Shareholders of Carbacid Investment

Rasimu Limited 22.61%
Mrs A Patel 15.00%
Mr B C Patel 9.86%
Leverton Limited 9.36%
Kivuli Limited 5.83%
Others 37.34%

Not sure if this has been discussed in some previous post, but Carbacid AGM is today, and I was unable to attend.

Can someone shed some light on the role Centum wants to play in Carbacid wrt its control of the board?
And why they used a subsidiary called Rasimu Limited to effect the Carbacid buyout?

Perhaps we shud ask at Centum's AGM... good question...

@wondergirl. I think the buy decision shud depend on the answers to the above questions.

@egitau. Can you estimate how much Centum would make after you take into account the bonus? in Capital gains? What price did they buy the over 2.56 million shares at and what is there value now.

What if Rasimu Limited is a short term vehicle to keep things off the books...and does that make sense? This year Carbacid has targeted capex spend of over 115 million for expansion, so no special dividend or huge dividend growth expected. Likely capex will be funded internally cos they have the cashflow (over 300 mn) to do so. So is Centum in it for the fair value adjustment?

Kenya National Properties is a Centum 100% sub to manage properties for rent...what's Rasimu's function?

So it boils down to who ordered the bonus with a side order of special dividends?

The decision to bring Centum on-board now seems wrong-headed when the acquisition was effected through an undefined entity and where Centum doesn't know much about the CO2 business (unless you count their soft-drink investment, Coca Cola, hummm...).

Centum's operations are cashflow negative surviving on expensive bank borrowings, besides cashflow-rich Carbacid needs no venture capital, but after all this time could any BOC offer now, match the goodies the current carb shareholders are enjoying? No! Maybe that's the message we shud be getting-massive returns now at the expense of future expansion (current gains for future pains).

@egitau it'll be interesting to know what Centum paid to see the extent of the windfall (if any), but if carbs price stays unchanged today, the investment shud def beef up 2010 earnings (as well as the CFA-smart CIO xmas bonus).
Final verdict: Centum has raided carbs revenue reserves, binged on its cashflows and the Centum sub has laid no clear plans as to its future role.

@wondergirl but ive not answered your question, but if you think Centum is underweight, then buy, praying those carbs add some fat. As for Carb, where there was a 10.0% dividend yield at Kshs100.00, b4 the bonus, there's now only a 3.3% yield. You cool with that? If not, capital gains are still an option, especially if shareholders squeezes supply to favour of higher bids (prices).

Aaahh well, I dramatized a lot in the previous post. For such a sizable stake, it would be nice for Centum to at least add some fresh ideas or capital into the mix. BC Patel seems to own a lot of listed companies in Kenya...would he qualify as Kenya's Warren Buffet?