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Monday, October 16, 2006

Olympia Capital Holdings zooms ahead!

OCHL has been one of the "quietest" counters on the NSE but it has zoomed ahead after the announcement of an acquisition... Now it has become a "hot" stock as the trade volumes have significantly increased.

OCHL has been trading in the KES 14-17 range from 1 Jan 2006 through 8 Oct 2006. The current price rise started on 9 Oct 2006 (16/-) to the current 25/- (16 Oct 2006). The current high is 26/- which beat the 2005 high of 25/-.

I had posted a link that would have provided the 1H 2006 Reports
Here is my original blog entry on 28 July 2006.

OCHL (listed in Kenya) owns 53% of OCC (listed in Botswana).
OCC (B) plans to acquire 74% of Plush Pty Ltd of South Africa.
Price is approx KES 160 Million (depends on the exchange rates). Rand, Pula & KES...

1H 2006 Results for OCHL were released on 28 July 2006. They are available as a free download courtesy of Investing In Africa.

The Kenyan operation performed much better while OCCC (B) posted higher revenues but a lower profit during 1H 2006 vs 1H 2005.

OCC(B) has issued a cationary on the SA acquisition earlier in the year as well as mention it on the 1H 2006 Results' commentary.

OCHL is planning a Rights Issue to fund its portion of the SA acquisition -through a OCC(B) Rights- as well as upgrading its Kenyan manufacturing plant.

S.Africa will host the 2010 FIFA World Cup thus the construction sector is likely to see a boom as roads, buildings, stadiums & other infrastructure is refurbished or newly built.

Fun Stuff
BTW... on Page 18 of Nation's Smart Company (17 Oct 2006), the "Pick of the Week" claims OCHL has a Namibian subsidiary... Hmmm... just coz Namibia borders Botswana does NOT make Botswana part of Naimibia! Is Kenya in Uganda?

Some Kenyans complain that Americans think "Africa" is one country... well some Kenyans think Botswana is in Namibia!

8 comments:

kenyanentrepreneur said...

can you talk about charter house and explain what's going on with that?

bankelele said...

One report I saw projected that Olympia revenue would increase from Kshs 291 million to 630 m after the acquisition.

Anonymous said...

good enough for OCHL. do you know anything about express? there are too many speculations out there. i am dying to know where the truth lies.

gathinga said...

coldtusker@ what is that sa company involved in? are we now seeing kenyan companies bold enopugh to tackle sa market. and is the construction the hot industry.... looking at ARM'S exploits there

coldtusker said...

ke - Don't know... Problems seem to have started AFTER the CEO of Nakumatt asked for a "subsidised loan" similar to what the government offered Uchumi.

I have the OCHL announcement but I shall ask someone to post it online...

banks - Yes. And could be even higher! Plush revenues (according to the release) are approx ZAR 66 Million thus KES 630 Million. OCHL could be a KES 1 Billion (Revenue) firm in 2007.

Gathinga - SA firm (according to the release) deals in blinds & window decorations. This is a huge market in the USA & UK... & since the SA has a first world economy (in some respects) I am sure this is a viable business.

Banks can testify to parts of S.Africa looking like a European or American city!

Can anyone from S.Africa explain or check out on Plush?

coldtusker said...

OK - Just curious but no-one commented on the Botswana is Namibia story...

Have Kenyans given up on accurate reporting?

I thought (esp) ke would be all over this!

kenyanentrepreneur said...

If I spent time going over all the editing errors in the kenyan dailies, it would consume my whole day!

coldtusker said...

KE - That's why I highlighted it for you! I wanted you to unleash some of your pithy humour on them!

The odd thins is that Smart Company ran a story on OCHL some time ago... and the Press Release was clear that it has a Botswana subsidiary!