Friday, June 22, 2007

Equity takes HFCK?

If Riba's story is on the mark, this is great news for the banking sector and both sets of shareholders. This should be the turning pt allued to earlier for HFCK. For Equity, they go to the top of the Mortgage sector without breaking sweat. Any downsides? Only for Equity to the extent that mortgage business is capital intensive, the housing sector may be on a bubble and HFCK npls are around ksh6bn (have implications for capital).
As a whole though, its an awesome deal for both.

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