[kictanet] Safaricom IPO & Telecom France

Thu Mar 27 23:55:51 EAT 2008

Interesting clarification, Nick, but why is the govt apparently hellbent on protecting the underhand deal and the mobitelea link? And any plausible reason why the govt is defiantly proceeding roughshod with the sale, in the name of the public, despite such vocal objections? Is the govt depending on the sale for deficit financing of the budget?
The whole thing reeks of something foul like anglo leasing.
David

Sent from my BlackBerry® wireless device

-----Original Message-----
From: Nick Wachira <nwachira at nation.co.ke>

Date: Thu, 27 Mar 2008 18:58:45 
To:David Makali <dmakali at yahoo.com>
Cc:mmathiu at nation.co.ke,Joseph Odindo <jodindo at nation.co.ke>,Jaindi Kisero <jkisero at nation.co.ke>,Charles 'Mase' Onyango-Obbo <cobbo at nation.co.ke>,Peter Munaita <pmunaita at nation.co.ke>,Ochieng Rapuro <orapuro at nation.co.ke>,Albert Muriuki <amuriuki at nation.co.ke>
Subject: Re: Safaricom IPO & Telecom France

We need to check the facts first and there are problems in this story.

Telkom Kenya gave up its 40 per cent stake in Safaricom late last  
year as BD reported in exchange of the government taking over Sh67  
billion of its debts (the way Kenya did with KLM in the KQ  
transaction in 1996). In short GOK bought TKL's stake in Safcom for  
Sh68 billion, which Parliament approved. France Telecom does not own  
a piece of Safcom, but it is in the process of being awarded the  
fourth mobile phone license if this has not been done already. CCK  
should already have placed ads in the papers asking to public to  
petition if they objected France Telecom getting this licence.

On Mar 27, 2008, at 6:41 PM, David Makali wrote:

> Nick, Odindo, Jaindi, Mutuma:
>
> Guys, this is staggering. The press must save Kenya
> from this disgraceful pass. Over to you.
> David
>
>
>
>> Wananchi,
>>
>>
>>
>> I do not see how the Safaricom IPO can be stopped
>> now without the GoK
>> incurring hefty penalties. So many institutions
>> engaged have spend huge sums
>>
>> of money they just can't fold their papers and
>> accept to walk away 'hand
>> nothing'.
>>
>> The reality is that *Continuous Disclosure* of info
>> by companies trading at
>> the NSE
>> isn't enforced at all. In fact, a govt that thrives
>> on opaqueness cannot be
>> expected
>> to legislate against opaqueness much less enforce
>> such legislation if it
>> existed.
>>
>> When the UK Serious Fraud Office started
>> investigating Vodafone UK, that
>> company's
>> subsidiary (Vodafone Kenya) is said to have quickly
>> swallowed Mobitelea's 5%
>> shareholding in Safaricom reverting back to owning
>> 40%of Safaricom while
>> giving
>> Mobitelea 12.7% of Vodafone (K) itself. And, info
>> from the grapevine has it
>> that
>> Mobitelea and Vodafone (K) are presently arguing
>> over shareholding. So
>> Vodafone
>> is lying in the bed it made. Who knows! Mobitelea
>> might have been
>> deregistered
>> already and another company assigned Mobitelea's
>> interest  in Vodafone
>> Kenya.
>>
>> There was fraud and govt covered up. Now they must
>> keep covering up for as
>> long
>> as they can. But this is not all. There is a bigger
>> problem that people are
>> forgetting.
>> Namely, that a big junk of proceeds from the
>> Safaricom IPO will go to
>> Telecom
>> France (and the shadowy figures who facilitated
>> their recent susipicious
>> takeover of
>> Telecom Kenya).
>>
>> *Telecom France got 51% of Telecom Kenya at
>> Sh23billion*! The takeover was
>> suspicious indeed.  The GoK thro' Telecom Kenya owns
>> 60% of Safaricom (i.e.
>> 60% of Sh200billion) which equals to Sh120billion.
>> The French now own 51% of
>>
>> Telecom Kenya which means they also own 51% of
>> Telecom's holding in
>> Safaricom
>> (i.e. 51% of 120billion = *Sh61billion*) and this is
>> in addition to 51% of
>> other Telecom
>> Kenya assets. What is depressing is the fact that
>> the French who paid
>> Sh23billion for
>> 51% of Telecom Kenya will walk away with 51% of  the
>> proceeds of the IPO (
>> i.e.
>> 51% of Sh50billion =Sh25.3billion).  They will still
>> own 51% of what remains
>> of Telecom
>> Kenya and its stake in Safaricom.  This is daylight
>> robbery. And the French
>> are very
>> notorious for such fraudulent activities outside of
>> France.
>>
>> *Scenario*
>> Telecom Kenya is valued at about *Sh54billion*
>> (although it owns *
>> Sh120billion* worth
>>              of Safaricom shares in addition to
>> numerous other assets)
>> Telecom France pays *Sh23billion* for 51% of Telecom
>> Kenya
>> Safaricom IPO Telecom Kenya sells percentage of its
>> holding to get approx *
>> Sh50billion
>> *Telecom France to get 51% of* Sh50billion *(IPO
>> proceeds)* = approx
>> Sh25.5billion*
>> You buy a company at Sh23billion and get your money
>> back immediately and
>> continue to own
>> the company!  *
>>
>> *I cannot understand how the French crooks could
>> have been given 51% of our
>> Telco for free.
>> Someone tell me, please.
>>
>> I'm surprised no one is talking about this.
>>
>> Kanaka__,_._,___
>>
>>
> >>
>>
>
>
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