Saturday, October 13, 2007


There are couple of firms in the NSE that have common ownership and management.It doesnt make sense to list them separately because the shareholders suffer double costs of extra layers of management and listing costs.

I have the following in mind:

Unilever Tea and Limuru Tea
Unilever holds the majority stake in Limuru Tea.They share top management.Limuru Tea is small(600,000 outstanding shares).Why not swap Limuru Tea's shares with Unilever and merge Limuru Tea into Unilever?

George Williamson and Kapchorua
George Williamson holds the controlling stake in Kapchorua.Save the Kapchorua minorities money and shuffle them into George Williamson.


I now see that as a nation Kenya is more tribalistic today than when MOI left in 2002.People dont talk about their political inclinations on an ideological or Economic perspective but rather on the basis of tribe or and religion. SHAME ON YOU TRIBALISTIC KENYANS.You deserve the leaders you get.


bankelele said...

I don't see any merger happening unless it's with an unlisted company e.g. Stanbic with CFC.

NSE/CMA want more companies (and icnome) not less - pity the Carbacid/BOC shareholders whose merger has been bogged down for two years

Anonymous said...

@ Bankelele: whats the use of the minority shareholders having to shoulder the layers of management in companies that handle the same services and products?

About tribalism, its a pity that it took Kibaki only 3yrs to achieve what Moi was trying to achieve in his 24yr reign.

MainaT said...

With banks on mergers-CMA/NSE are against any voluntary reduction of numbers.

How about banning politics until we are mature enough to discuss?

And i hope we don't get the leaders we deserve as we don't need another Rwanda or Burundi, thank you.

Riba Capital said...

M&A in Kenya is a phenomenon not fully exploited.
There are other numerous examples of Firms that could benefit from this, though not listed: Am thinking firms like Proctor and Allan Vs Proctor and gamble, Think the manufacturing arena and the examples are endless, the services industry, think law firms, consultancies etc.

Am surprised even NGO's like Save A Child, CARE etc. There is Save A Child Kenya, S.A.C Somalia, S.A.C Sudan and similar for CARE among others.

But this comes with maturity of an economy so that we might reach a point where there is an actual market for businesses.
In SA for instance there is a market for businesses..

ka-investor said...

@Riba: please explain further how the market for businesses work. I would really like to know.

I don't think CMA can allow for listed firms to Merge. They need more firms to list not to reduce the listed ones. Unless they get delisted and relist, which is so uneconomical.

pesa tu said...

@Bankelele: Thats the counterproductive slant that CMA has.It should encourage more listings NOt keep the existing ones artificially high for selfish reasons i.e. listing fees.

@Anon: The sad story of our leaders u put it so well

@Mainat: We have matured i dont think we can go the Rwanda/Burundi route in this country.All the three Presidential launches in Nairobi have been peaceful violence free affairs.

@:Ribacapital: Do write more about the companies market.

@Kainvestor:The companies i mentioned are owned by the same shareholders and share top mgt. like Directors and senior management + they are in the same line of biz.Merging them would be painless.

aa said...