Ericsson wrote:Ebenyo wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:Kenya Reinsurance has put a tender for sale of Reinsurance Plaza Kisumu.
Reserve price Ksh.1 billion
Sell and pay a dividend
Are there buyers at that price in this market?
The rich Indians from Kisumu or government though the process may take time to conclude.
Part of the proceeds may also be used to put up their new commercial building (twin towers) in Upper Hill
There are many rich Luos who can buy it.
Using the proceeds to build a new commercial building in Upper Hill, in the near future, would be STUPID and CRIMINAL.
The proceeds should be invested in the stock market if the prices remain low. The best is to pay out a dividend. Next best is a share buyback.
https://www.businessdail...insurance-plaza-3299332
@vvs.
There you have it;
""The reason (for sale) is strategic reinvestment," Kenya Re chief executive Jadiah Mwaraniah said in response to the Business Daily queries without divulging further details."
They will not use the proceeds to payout a dividend and highly unlikely stocks.
The main shareholder(GOK) with 60%,is in distress of cash for referendum,budget 2021/2022 and general election 2022.They could be pushing to get this cash.
They pushed safaricom to declare an interim dividend.
https://www.businessdail...rastatals-money-3296618
Can't rely on this since they ain't sure they will get a buyer.
Safaricom is a different case since it doesn't have financial regulatory compliances
Kenya Re is over-capitalized for the size of its business.
It is earning low returns on its cash (deposits, T-Bills).
The sale of the property is a matter for 2021.
The dividend is for FY2020.
BUT the IRA can block a dividend.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett