Sale of firms renews rivalry among advisers

Data from the NSE show that foreign trades accounted for more than about 60 per cent of the total turnover since the start of the year as local investors kept away.

Low confidence was blamed late last year for the decline in public participation in initial public offerings that gave the market its very first undersubscription in Cooperative Bank share sale in November 2008.

The government, however, can sell its stakes to strategic investors.

However, this looks unlikely given that the firms are already listed on the NSE and are in sound financial health, meaning they should attract suitors, notably high net worth investors.

Portland Cement announced a net profit of Sh630 million in 2009 from a loss of Sh391 the previous year.

KenGen profits dropped 19 per cent to Sh866 million in the six months to December because of poor weather that hurt its hydro-power plants, but the growing demand for electricity coupled with KenGen’s expansion should keep profit growth steady at the power firm.

The perennial deal-clinchers among investment banks include Dyer & Blair and Standard Investment Bank with Deloitte and PricewaterhouseCoopers (PwC) sharing the accountants roles.

On legal services, there is Hamilton Harrison & Mathews and Kaplan & Stratton.

The upcoming firms are expected to seek a piece of this business by forming consortia with established names.

But the young firms will seek a piece of this business by forming consortia with established firms.

State hotels

Other firms planned for sale are national fuel distributor Kenya Pipeline Company (KPC), giant milk processor, New Kenya Cooperative Creameries (New KCC), Kenya Meat Commission (KMC) and sections of the Kenya Ports Authority (KPA).

State hotels such Karbarnet, Golf and Sunset hotels, Mt Elgon Lodge, Kenya Safari Lodge, and the hotels under Kenya Tourism Development Corporation (KTDC) —International Hotels, Kenya Hotels, Mountain Lodge — are also on the list.