[kictanet] Fwd: Firms Plan Private Placements - Business Daily

[Bill Kagai]

--------- Forwarded message ----------
From: Stock Detective <stock.detective at mediacorp.co.ke>
Date: Jan 31, 2008 7:42 AM
Subject: Firms Plan Private Placements - Business Daily
To: MediaCorp.Research at mediacorp.co.ke

http://www.bdafrica.com/index.php?option=com_content&task=view&id=5597&Itemid=5812

Firms Plan Private Placements

Written by Emmanuel Were

BUSINESS DAILY
January 31, 2008: Resolution Health and MediaCorp plan to sell a stake of
their shares to private investors within the year. The private placements
will follow closely those of CIC Insurance and SPS, which were to be
concluded last year but have been extended to accommodate the interests of
investors.

The insurance firm will file the placement at the Capital Markets Authority
(CMA) having concluded the initial stages of the placement.

"We are at a conceptual stage and we will obviously follow CMA
requirements," said Peter Nduati, CEO, Resolution Health. Last week, the
markets regulator issued a notice reminding companies wanting to raise money
from the public to seek its approval.

Resolution Health has, however, established investment groups and their
members as the target market for the placement, taking a cue from CIC which
was selling its share exclusively to co-operative societies and their
members.

Investment clubs in the country have recently been organised into a credible
lobby through the Kenya Association of Investment Groups (KAIG) which now
has 30 investment groups and five corporates.

Mediacorp, one of the licensed Nairobi Stock Exchange data vendors, shall
offer a 20 per cent stake worth Sh20 million, with the minimum amount of
application standing at Sh500, 000. It hopes to raise the funds by the end
of February 2008.

"The funds will enable us set up an agency for stock broking services
through a licence acquired from Faida Investment Bank," said Bildad Kagai,
CEO, Media Corp limited.

The stock broking agency, to be known as, MediaCorp Capital, will offer
services in trading of equities and bonds initially to subscribers for its
data vending services.

It will also have its eyes on the regional market in anticipation of the
formation of the East African Stock Exchange by opening four sub regional
offices in Mombasa, Kampala, Kigali and Dar-es-Salaam. "We hope to become
the leader of financial and stock information in East Africa," said Mr
Kagai.

In the case of Resolution Health, a Medical Insurance Provider (MIP), it
needs to raise it core capital in line with the proposal by the Finance
minister in his 2007/08 budget who proposed to increase the paid up capital
of General Insurance from Sh100 million to Sh300 million.

Resolution Health is looking for a maximum of 50 new share holders willing
to part with Sh10 million each, taking its paid up capital to Sh610 million
through the private placement.

The increase in the capital will come at a time when according to the CEO,
Mr Nduati, Resolution Health plans to convert to an insurance company by the
end of this year as well as making a foray into the Ugandan market.

The Medical Insurance Provider (MIP) whose insurance covers includes
paternity, HIV and dental covers has been in the Kenyan market for the past
six years.

On the other hand MediaCorp began its operations in June 2006 offering
subscribers access to the Nairobi Stock Exchange real time trading data via
the Internet with a current subscription base of 600 subscribers.

Investment groups need to broaden their portfolio to cover risks arising
from uncertain times like the ones being experienced in the country
presently, said KAIG chairperson Patrick Kariuki.

"All investments have different levels of risk but if you hide from risk you
hide from returns. Diversity helps reduce exposure to specific risks," he
said during a seminar hosted by the two companies for KAIG members.

Returns from the equities market have fallen sharply amid the violence set
off by the outcome of the presidential election a month ago. Investors in
the hard currency market, especially those who had backed the shilling to
depreciate, have been the main beneficieries of the prevailing situation.

http://www.bdafrica.com/index.php?option=com_content&task=view&id=5597&Itemid=5812
-- 
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Bildad Kagai
MD - MediaCorp Limited
Nairobi Stock Exchange [NSE] - Authorised Information Vendor
Suite B2 Tetu Apartments StateHouse Avenue
P. O. Box 20311-00200
Tel. 254 20 272 8332
Fax. Rendered Obsolete
URL. www.mediacorpafrica.com
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