A bit more detail on the Equity/HFCK link-up now including Britak, Equity's largest shareholder. As an aside, Britak is planning an IPO in the next 18-24 months.
While this blogger has a very positive view of this deal, those fearing its impact on Equity bottomline ought to be aware that as Equity will only hold 25% of HFCK, HFCK's results will be accounted for as an associate in Equity's books. Equity will however have a controlling stake thus will be able to steer HFCK strategy and be in a position for a later takeover or equity exit
EA Cables seems to be working its magic in TZ, where its subsidiary is experiencing a turnaround in perfomance.
10 comments:
Good move by Equity.HF has a massive market share in the mortgage industry and has invaluble experience.
1st I have heard of that britak ipo.
HF is affordable and good one for speculation i remember when the G29 deal became known HF price appreciated and this may yet happen again in coming weeks.
strategic business patners indeed, smart move for both
Is it me or what? Kibaki's cronies are begining to look like the Kulei's of yester years who snapped up stakes in any company worth owning.
Makes me wonder where all these money is coming from. Unsecured bank loans? or may be the proceeds of the much talked about corruption.
Michael-Yes its a good move. Equity of course started life as a mortgage lender to the low income, but did it at the wrong time. ON Britak IPO-watch this space...
JM-Here is an analogy for you. If you wanted to get to Kisumu, the bus left this morning. Yani, the time to get into HFCK may have passed.
Jackie-true.
Ssem-There are similarities, but please do note that all the companies involved here are private entities. As for the sources of their funds. Britak make money from insurance, Jimna Mbaru from NSE et al. For the time being, I am refusing to see a conspiracy in everything that goes on in Kenya.
Maina, where were these so called 'private' companies before 2003?
Corruption is still going on in Kenya and you can guess who the biggest beneficiaries are.
Take for instance the purchase of Air Force planes. The govt doesn't want to talk about it claiming that it will be against national security interests. Yet I am sure you can find all the information you want about our armed forces online.
Why do you think Njenga Karume heads the ministry of Defence, yet he could have been better of as minister of agric or trade or co-ops?
Give it a few years and you'll be reading about how the looting is being done.
1stly, I didn't say corruption is nnot happening in Kenya. au contaire, corruption is the main reason I won't vote Kibaki. Njenga Karume shouldn't be an MP let alone a minister.
As for Equity-http://uk.microsave.org/searchresults.asp?NumPerPage=10&id=20&cboKeyword=65&CurPage=4 on Understanding the Re-birth of Equity Building Society in Kenya. This will give you all the info you need. One thing, Equity were going to be shut down in 1992.
Britak-has been in Kenya since the 50s. Have expanded into fund management since 2003. Many Kenyans do things corruptly and should ideally have the book thrown at them, that doesn't mean they all are corrupt.
Maina, I have to disagree with you on this one.
Even though I am know no details about Equity I think there is more than meets the eye.
The fact that Equity has not said anything and the govt is falling over itself trying to defend the bank goes to show that there may be some truth to the allegations.
The bank may have the best business model but that doesn't mean it is clean.
Can you deny that Equity does not enjoy political patronage?
As far as the allegations go, I think I am comfortable based on what I know that Equity are victims of their success. Uniquely for the NSE, Equity are/have been very transparent not just about their current status, but also how they've grown. I suppose its all work fiction in which case, I'll nominate them for the next Pullizer award :-)
If by political patronage you mean do they enjoy GoK's support? Of course, as does KCB, COOP, StanChart, Stanbic and NBK to name but a few. Don't forget that our politicians do love any place where they can stand next to success.
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