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Kenya Airways...why ignore..
Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Elder Joined: 3/2/2009 Posts: 26,325 Location: Masada
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Finally we have lived to witness the historic sub 2 bob! Portfolio: Sold You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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Impunity wrote:Finally we have lived to witness the historic sub 2 bob! Hahaha.. Shindwe kabisa HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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@Obiero please explain to me like to a little child why KQ is splitting shares, issuing worthless deferred shares. Life is short. Live passionately.
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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sparkly wrote:@Obiero please explain to me like to a little child why KQ is splitting shares, issuing worthless deferred shares. The deffered shares were necessary to get a low entry price of KES 2.13 which would be lower than prevailing market price. Thereafter a consolidation would hike the price past market value.. Meanwhile I can guarantee that most of the trades happening now on KQ are fictional. There's no logical reason for anyone who has been holding onto KQ to sell now and worse still to buy now while the Open Offer will give a massive discount HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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obiero wrote:Flo-ology wrote:maka wrote:obiero wrote:obiero wrote:All businesses have challenges, more so in our aviation industry, which is cyclical in nature and fraught with many risks. These include fuel price volatility, intense competition and more recently the threat of terrorism and epidemics that have adversely impacted global travel. There is also political instability, natural disasters and an increasingly tight regulatory environment and KQ is not isolated from any of these. KQ has expanded its global footprint across multiple jurisdictions flying to 52 destinations. As a global airline, we are governed by stringent international aviation rules that we must adhere to. Strong consumer activism in some markets like the European Union (EU) has imposed high costs of operations in cases of schedule interruptions. But it has not always been doom and gloom. Over the last decade, Kenya Airways worked hard to successfully shed the image of an ailing airline dependent on government lifeline. Since it was privatised in the late 1990s, the airline grew rapidly, lifted by strong fundamentals and embracing a culture of competitiveness and innovation. Before the current spate of challenges, KQ was one of the most profitable airlines even earning the ‘Most Respected Company in East Africa’ accolade. Are we in debt? Yes we are. Is this normal for airlines? Most certainly. The question is one of balance for both long term and short term debt. Long term debt is the norm for financing asset acquisition together with equity. In the short term, we are experiencing a tight liquidity position driven by our business environment. Were we too ambitious in our plans? Only time will tell. KQ from 2002 to 2011 grew from a turnover of Sh25 billion to over Sh100 billion, in the same period. It only made a loss in 2009. Against this backdrop, the Board embarked on a second phase of growth and renewal with mixed results thus far. Operationally, we have seen significant improvements over the last two years both in on time performance and service. In the last month though, we have had significant disruptions to our schedule integrity which has regrettably impacted our loyal customers for two reasons. Firstly, the change of schedule due to the runway closure and attendant internal adjustments we have had to make. Secondly, we have had labour relations issues with some of our pilot community which in some instances has led to last minute flight cancellations or delays. So, whereas KQ may today be grappling with challenges, what is important is that we stay focused in delivering on the wider promise. What matters most is the measures instituted to put the business on a recovery path and ultimately on a sound footing. The pilots will kill KQ.. 5 days to the EGM This matter should be sorted out once and for all if not the pilots will do it again and again...The interedting bit is just a section of them others reported to work as normal and others did extra hours...It's a clique. Why can't they fire them, ground the airline for let's say 1 month and hire afresh Indeed. They could also be paid pro rated salary per trip. So, no shows without due cause leads to personal income loss Michael Joseph & Sebastian I thank you. Wish Ngunze had listened to some of our suggestions http://www.businessdaily...67184-5v1e2nz/index.html HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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obiero wrote:obiero wrote:Flo-ology wrote:maka wrote:obiero wrote:[quote=obiero]All businesses have challenges, more so in our aviation industry, which is cyclical in nature and fraught with many risks. These include fuel price volatility, intense competition and more recently the threat of terrorism and epidemics that have adversely impacted global travel. There is also political instability, natural disasters and an increasingly tight regulatory environment and KQ is not isolated from any of these. KQ has expanded its global footprint across multiple jurisdictions flying to 52 destinations. As a global airline, we are governed by stringent international aviation rules that we must adhere to. Strong consumer activism in some markets like the European Union (EU) has imposed high costs of operations in cases of schedule interruptions. But it has not always been doom and gloom. Over the last decade, Kenya Airways worked hard to successfully shed the image of an ailing airline dependent on government lifeline. Since it was privatised in the late 1990s, the airline grew rapidly, lifted by strong fundamentals and embracing a culture of competitiveness and innovation. Before the current spate of challenges, KQ was one of the most profitable airlines even earning the ‘Most Respected Company in East Africa’ accolade. Are we in debt? Yes we are. Is this normal for airlines? Most certainly. The question is one of balance for both long term and short term debt. Long term debt is the norm for financing asset acquisition together with equity. In the short term, we are experiencing a tight liquidity position driven by our business environment. Were we too ambitious in our plans? Only time will tell. KQ from 2002 to 2011 grew from a turnover of Sh25 billion to over Sh100 billion, in the same period. It only made a loss in 2009. Against this backdrop, the Board embarked on a second phase of growth and renewal with mixed results thus far. Operationally, we have seen significant improvements over the last two years both in on time performance and service. In the last month though, we have had significant disruptions to our schedule integrity which has regrettably impacted our loyal customers for two reasons. Firstly, the change of schedule due to the runway closure and attendant internal adjustments we have had to make. Secondly, we have had labour relations issues with some of our pilot community which in some instances has led to last minute flight cancellations or delays. So, whereas KQ may today be grappling with challenges, what is important is that we stay focused in delivering on the wider promise. What matters most is the measures instituted to put the business on a recovery path and ultimately on a sound footing. The pilots will kill KQ.. 5 days to the EGM This matter should be sorted out once and for all if not the pilots will do it again and again...The interedting bit is just a section of them others reported to work as normal and others did extra hours...It's a clique. Why can't they fire them, ground the airline for let's say 1 month and hire afresh Indeed. They could also be paid pro rated salary per trip. So, no shows without due cause leads to personal income loss Michael Joseph & Sebastian I thank you. Wish Ngunze had listened to some of our suggestions http://www.businessdaily...7184-5v1e2nz/index.html[/quote] The restructuring that Musila and co were busy rushing to implement before Sebastian came in is also being looked into...He feels it was shoddily done... possunt quia posse videntur
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Rank: Member Joined: 5/29/2016 Posts: 898 Location: Nairobi
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maka wrote:obiero wrote:obiero wrote:Flo-ology wrote:maka wrote:obiero wrote:[quote=obiero]All businesses have challenges, more so in our aviation industry, which is cyclical in nature and fraught with many risks. These include fuel price volatility, intense competition and more recently the threat of terrorism and epidemics that have adversely impacted global travel. There is also political instability, natural disasters and an increasingly tight regulatory environment and KQ is not isolated from any of these. KQ has expanded its global footprint across multiple jurisdictions flying to 52 destinations. As a global airline, we are governed by stringent international aviation rules that we must adhere to. Strong consumer activism in some markets like the European Union (EU) has imposed high costs of operations in cases of schedule interruptions. But it has not always been doom and gloom. Over the last decade, Kenya Airways worked hard to successfully shed the image of an ailing airline dependent on government lifeline. Since it was privatised in the late 1990s, the airline grew rapidly, lifted by strong fundamentals and embracing a culture of competitiveness and innovation. Before the current spate of challenges, KQ was one of the most profitable airlines even earning the ‘Most Respected Company in East Africa’ accolade. Are we in debt? Yes we are. Is this normal for airlines? Most certainly. The question is one of balance for both long term and short term debt. Long term debt is the norm for financing asset acquisition together with equity. In the short term, we are experiencing a tight liquidity position driven by our business environment. Were we too ambitious in our plans? Only time will tell. KQ from 2002 to 2011 grew from a turnover of Sh25 billion to over Sh100 billion, in the same period. It only made a loss in 2009. Against this backdrop, the Board embarked on a second phase of growth and renewal with mixed results thus far. Operationally, we have seen significant improvements over the last two years both in on time performance and service. In the last month though, we have had significant disruptions to our schedule integrity which has regrettably impacted our loyal customers for two reasons. Firstly, the change of schedule due to the runway closure and attendant internal adjustments we have had to make. Secondly, we have had labour relations issues with some of our pilot community which in some instances has led to last minute flight cancellations or delays. So, whereas KQ may today be grappling with challenges, what is important is that we stay focused in delivering on the wider promise. What matters most is the measures instituted to put the business on a recovery path and ultimately on a sound footing. The pilots will kill KQ.. 5 days to the EGM This matter should be sorted out once and for all if not the pilots will do it again and again...The interedting bit is just a section of them others reported to work as normal and others did extra hours...It's a clique. Why can't they fire them, ground the airline for let's say 1 month and hire afresh Indeed. They could also be paid pro rated salary per trip. So, no shows without due cause leads to personal income loss Michael Joseph & Sebastian I thank you. Wish Ngunze had listened to some of our suggestions http://www.businessdaily...7184-5v1e2nz/index.html[/quote] The restructuring that Musila and co were busy rushing to implement before Sebastian came in is also being looked into...He feels it was shoddily done... Everything will be laid bare. No more noise from the pilots again.It is good to see they sat down after the brief disruption.There was no need to refuse them these benefits since some of them do not even utilise the medical benefits. In any case, there are packages out there in the market which KQ can soource competitively and hence value for money.
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Rank: Veteran Joined: 2/2/2012 Posts: 1,134 Location: Nairobi
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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.
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Rank: Chief Joined: 1/3/2007 Posts: 18,055 Location: Nairobi
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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. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 2/2/2012 Posts: 1,134 Location: Nairobi
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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!
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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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;....
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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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 HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Chief Joined: 1/3/2007 Posts: 18,055 Location: Nairobi
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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
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Rank: Elder Joined: 3/2/2009 Posts: 26,325 Location: Masada
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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.
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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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 HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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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/ HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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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.
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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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 HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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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
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