RIBA CAPITAL
:::Kenol/Kobil Takeover:::Kenya Oil Limited stocks are showing some volatility at the Nairobi Stock Exchange on news that the company plans to acquire its trading partner, Kobil Petroleum Limited.
Kenol and Kobil have been operating under a joint management agreement, where Kenol provides the management team. But both companies have had different shareholding structures. The firms are currently seeking approval from the CMA as well as planning a Emergency General Meeting so that shareholders can endorse their plans.
Kenol intends to enter into a conditional sale and purchase agreement whereby Kenol plans to acquire 100 per cent of the issued share capital of Kobil Petroleum Limited, a company incorporated in Delaware, USA.This deal is almost the same as the one for BP/Shell, when BP exited from the Kenyan market and Shell purchased it business.
One of the factors to note is the after a successful acquisition Kenol will automatically become the largest player in the Kenyan oil market with a market share of close to 25%.
Another point is that Kenol will have solidified its presence in Africa with outlets in Kenya, Uganda, Tanzania, Zambia, Rwanda and Ethiopia and plans underway for further expansion.
The Kenyan M&A market has seen some very active times and Investment banking as a career is picking up.
Kenol has seen its average price for the past week rise from Kes: 103.00 to Kes:108.00.
This is a good share to have in your portfolio especially in the LONGRUN.
:::Safaricom IPO:::
This seems well underway after signing of the contracts by the tender winners in the quest for the Government to offload its 25 % stake in the Kes:17Bn money minting machine.
The government is still keen that the IPO can still be done by December this year, though I hold a more conservative view and think a first quarter listing next year would be more beneficial to whichever government will be in power and also to bring confidence to the markets after the elections.
Michael Joseph also seems more keen for a next year listing.
The winners putting pen to paper were: Dyer & Blair Consortium(Lead Brokers), Muriu Mugai (Legal advisers), Citibank Consortium (Lead Receiving bank), Deloitte & Touché (Reporting accountants), Red Sky (Advertisements) and Gina Din Communications(Public Relations ).
:::Transcentury Private Placement:::
This group has matured into Kenya’s Blackstone and plans are well underway for a private placement. Just 10 years(1997) after it was started.
Transcentury evolved over the years from an investment club to one of the leading private equity firms in the Sub Saharan Africa with assets far in excess of Kes: 10Bn.
And its shareholders are smiling all the way to the bank with their networth multiplying by the day.
This private placement is to fund its investments and also reward current shareholders as the fund aims at investing further in Africa and Asia.
Find a link to transcentury Portfolio.
More details of the private placement will follow.
