A. ABSA Kenya’s core capital on 30 June 2021 was Ksh 46.4B
B. ABSA Kenya’s loans to EABL as of 30 June 2021 were Ksh 18.8B
A/B= 40.6%
That’s a lot more than 25%. This is the question the reporter was asking.
10/ What's more interesting though is this:
The current EABL Chief Financial Officer - Risper Ohaga - worked for ABSA/Barclays prior to being appointed EABL’s CFO in 2018.
11/
The Stockbroker, arranger, placing agent, and receiving bank for the MTN are all part of Absa.
The chair of Absa Securities is @patriciaIthau who is a Non-Executive Director of Absa and has held previous roles at EABL.
ABSA and EABL seem tightly linked on executives.
12/ Btw, the current chairman of ABSA Charles Muchene is a former chairman of EABL.
13/ One would expect the IM to have all the relevant information but the IM issued on 7 Oct 2021 provides information from (unaudited?) accounts of period to 31 Dec 2020
EABL has released updated information in its Annual Report of Year ended 30 June 2021
The IM needs updating
14/ So whereas all seemed well with Loan/Core Capital on 31 Dec 2020, it is not the case on 30 Jun 2021.
Dec 2020 vs June 2021. The difference is this loan maturing July 2022 of Kshs 11B that Absa gave EABL.
Is this the loan that EABL is looking to retire with the MTN?
15/ This now begs a few questions:
1. Where is the regulator @cbkkenya in all this given this high exposure Absa seems to have to EABL?
2. Why didn’t CMA insist on an IM with the latest information since the EABL 20/21 FY results had already been published?
Highlights from Julians Amboko [@AmbokoJH] interview with Nation Media Group [@NationMediaGrp] CEO Stephen Gitagama [@SGitagama] on the company's recently closed share buyback program.
1. Was the buyback a success?
"I think the market reaction and the market levels of trading and the volumes of shares that we finally were able to purchase [82.5%] is a significant success according to us"- @SGitagama
2. There was less participation in the buyback when NMG released H1 2021 results compared to prior.
"The behaviour of the market after the release of the results indicates second thinking amongst the investors to keep the shares as it might fetch a better price...
- No exits this year
- 30% expenses target by end of the strategy period
- Kshs 4.2B unrealized losses were driven by business multiples down, the performance of its businesses going down, and deferred tax being passed at 30% from the previous 5%
Excerpts from Java House CEO Derrick Van Houten in an interview with Business Daily [@BD_Africa]
1. On achievements after 4 months in charge:
"We were very low-key in delivery but we are now no. 2 regionally in deliveries in 3 months and that's phenomenal for me"
2. On COVID-19 impact:
''When covid, hit our sales went down by a substantial margin. We therefore had to close down a few more branches to manage costs. We also decided to cut our workforce through a voluntary exit programme, an exercise that saw about 700 workers sent home"
3. Will Java go into franchise deals?
''Franchising is an opportunity with Kukito. If we could get partners that who could build in Kukito as a franchise unit-that we will definitely do''