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