Good analogy Emmanuel. Telkom was a good buy for Helios because of the value of the assets. This happened to Uchumi Supermarket where they sold one of their profitable branches (Aga Khan Walk) and leased it back to the supermarket. The rest is history.

"It’s understood that Helios is mainly eyeing the company's real estate assets worth KES 13bn." Source, year 2015, https://www.africaglobalfunds.com/news/private-equity/deals/helios-acquires-70-stake-in-telkom-kenya-from-orange/

Another company with the same prospects as Telkom is KPLC which has assets of around KES 325B, but the market value at the stock exchange - market capitalization at 2bob/share is KES 3B - which is around 1% of its asset base. Ripe for plucking 😳

On Mon, 10 Oct 2022, 19:26 Emmanuel Khisa, <oloo.khisa@googlemail.com> wrote:

This is shocking on so many levels...If your business involves the storage of goods in a godown, why would you sell your godowns then lease them back at a fee...what would really motivate such consideration, I know new age business 'brilliance' suggests that owning buildings is not a core business but same reasoning cannot surely be applied to BTS...

Mwendwa, this is amazing but I am not an investment guru so let me stick to my lane.

On Mon, Oct 10, 2022 at 5:14 PM Mwendwa Kivuva via KICTANet <kictanet@lists.kictanet.or.ke> wrote:
Six years later, the performance of Telkom Kenya under Helios remain mixed. The biggest thing to happen in the five years has been asset-stripping activity. The biggest revenue earning achievements has occurred in asset- stripping and increased activity. In 2018, Telkom Kenya offloaded Extelecoms House - the multi storey building on Haile Selassie Avenue - to the Central Bank of Kenya (CBK) at a consideration of Sh1.15 billion. A few months later, the company announced that it had sold 720 tower sites in a sale and lease back deal to the American Tower Company of the United States at a consideration of a whopping Sh16.9 billion.--
Best Regards,
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Mwendwa Kivuva, Nairobi, Kenya
https://www.linkedin.com/in/mwendwa-kivuva
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