advice from a neighbour
President Yoweri Museveni gave some history, leadership, business, and investment insights in a speech when he opened the new Serena hotel in Uganda.
Some of the things he mentioned touch on the future prospects of Tiomin, Kengen, Sasini, Serena, coffee marketing, and relations with China & and other foreign donors. I welcome any recent Ugandan visitors to comment, since I am yet to visit the Pearl of Africa beyond Malaba (trip planned for 2007).
Serena
Serena shareholders are being encouraged to accept the offered new shares in a special mailed prospectus. The deal has been endorsed by the board as well as financial advisors of the company and is being promoted as a unique opportunity that takes advantage of a number of factors including one-off tax credits amounting to 504 million shillings from Tanzania & 96 m from Zanzibar, and the higher revenue and margins that Serena enjoys from operating hotels in Tanzania and Zanzibar. The company also plans to acquire hotel properties in Nakuru and Western Kenya in 2006. I have no doubt, the takeover will be successful and I look forward to owning new shares in Serena after March 2006
Standard
The Standard Group’s year ended in September and revenue increased from 1.76 billion to 1.99 billion. However, increased administrative and distribution costs meant that profit for the year reduced from 78m to 66m and the company will not pay a dividend in 2005.
Kengen
Another politically-correct deal was concluded last week and while this is not the first time that conflict of interest issues are being raised in the energy sector, it does raise questions about the outcome of the upcoming Kengen IPO.
New blood at NSE
2006 looks to be a bright year at the Nairobi Stock Exchange, with several companies expected to list some shares at the NSE for the first time since Mumias did in 2001. Kengen leads the pack with 30% available to the public while other companies who have expressed interest include the Scanad Group, Suntra Investment Bank, Sopa Lodges, Wananchi online, Adopt-a-light, belated Equity Bank ( who were expected to float some shares by October ’05), Sarova Hotels (target is June 2006), and Nakumatt (target 2007)
Cashing Out
Already investors are setting aside cash by liquidating other investments. NSSF which has already sold shares in KPLC also plans to sell other shares in Housing Finance, National Bank of Kenya and Sameer Investments. Top investors have also sold shares in Barclays, Uchumi and CMC.
ISP licences
The Communications Commission of Kenya has extended the deadline by one month for licenced ISP’s to apply for mandatory modified ISP licences. Companies will have to provide details of their current shareholding and tax compliance status – otherwise they will be de-registered in 2006.
Banking
– Co-operative Bank of Kenya has applied to the CCK for a value added service PRS license, which will become effective around January 15.
– Can giving micro-finance loans to men reduce the level of violence against women?
– Post Bank has officially ended its once popular premium bonds savings scheme and tomorrow (31/12) will be the deadline for bondholders to encash their bonds which will not be worthless thereafter.
– World Bank vs. Western Union: The amount of wire transfer remittances to Africa is greater than the amount of official direct aid.
Nairobi City Council
The NCC had quite an interesting week as;
– The Kenya Revenue Authority walked away from a deal it had struck with the NCC to collect land rates on behalf of the council.
– Members of the United Business Association and WeCanDoIt advised their members to renew their single business permits with the council to avoid harassment and arrest. The two groups which are challenging the council, claim that their members are being targeted for harassment.
– This week, NCC staff pulled down fences that surround private parking compounds in the city, insisting that owners put up modern fences that beautify the city.
Jobs
At the Kenya Revenue Authority
– Commissioner of domestic taxes CDT/05: Applicants expected to have MBA with at least 5 years senior management experience at audit or accounts in large organizations as well as good knowledge of revenue acts in Kenya.
Commissioner of customs services CCS/05: Applicants should have a business degree – preferably MBA, 5 years experience in senior management of large organizations and good knowledge or revenue acts in Kenya with emphasis on the East African Community Customs Management Act
Apply through KPMG’s executive selection at esd@kpmg.co.ke by 16 January.
Media jobs
Nation Media Group
– Television: Swahili reporter/anchor, sports editor, cameraman
– Radio: news presenter
– True Love magazine: senior fashion editor, fashion editor, and staff writer.
Apply to the group human resource director, Nation Media Group P O Box 49010-00200 Nairobi by January 4.
Standard
Senior reporter broadcast division. Apply to the group human resource director at hrd@eastandard.net
Kenya Times
– circulation sales executives: Nairobi (2) Eldoret Mombasa Kisumu Machakos Nakuru and Mt. Kenya
– advertising sales executives: Eldoret Mombasa
– advertising manager
– chief accountant
– managing director
apply to kenyatimes@timesnews.co.ke by January 6.
New Year’s resolution
Doubling church attendance can raise income by almost 10% recent research indicates. But is money a good reason to go to church? linked from www.aldaily.com.
Plans for the long-awaited restructuring at Serena have been finalized. It will involve the takeover of Serena Kenya (TPS Limited) by Serena East Africa (TPS Eastern Africa) who will purchase the 23% owned by the public (9 million shares of 5 shillings par value) by offering them 1.35 new shares (par value 1/=) of the new TPS EA for each old TPS share held. (TPS who own 77% will not be participating)
calendar
1 December: record date of entitlements.
14 December: documents posted to shareholders including offer details, information memorandum, and invitations to attend presentations by managers and transaction advisers.
16 December: opening of offer.
15 February 2006: closing of offer. Also if exercise is unsuccessful, [i.e. at least 1,000 shareholders don’t buy in or TPS does not attain 80% stake in company] then old TPS shares resume trading at the NSE.
1 march: results announced.
15 March: new TPS EA listed on NSE.
29 march: old TPS delisted from NSE.
I came out the Nation Centre building at lunchtime today and almost bumped into Mr. Okomo Okello, the Chairman of Serena Hotels (and Barclays Bank). I was tempted to ask him when the proposed restructuring of Serena that the Board had told us about at the April AGM would ever take place (they had said in a few months) – but divulging such information to me would be insider trading, and would he even talk to a stranger?
Still, I was reminded that I wish had bought more Serena shares after that AGM instead of East African Breweries. Serena shares have gone from 52 shillings to a high of 90, and today closed up 4.5 shillings at 85.5 (almost 6% in one day).
The number of tourists in Kenya has been increasing over the last two years. In addition to these foreign visitors, hotels have seen increased local business owing to parliamentary retreats, political parties strategising on elections & the constitution, cultural nights, corporate events and various international conferences.
This has manifested itself in a lot of investor activity. This week the Sarova Group [Stanley, Panafric Whitesands Hotel (an MP’s favourite), Sarova Mara)] declared their intention to list on the Nairobi Stock Exchange. Earlier, TPS Serena, announced a plan at their AGM to consolidate their Kenyan and Tanzanian operations later this year. T.P.S. Serena traded at 53 shillings per share during the May 2005 AGM and now trades at 86 shillings (up 62% in a 2 months)
Saudi billionaire Prince Alwaleed bought all Lonrho hotel properties in Kenya, and the Nairobi Intercontinental is ‘getting a facelift’ as part of an expansion program to increase revenue.