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Tuesday, July 01, 2008

Grand Regency Hotel - IPO? Dreaming...

The GoK could have sold GRH to the public and make it a public entity... but there would be nothing there for the politicians... would there?

GRH with a market value of KES 3bn would have been larger than the market caps Unilever Tea, Kakuzi, Rea Vipingo, C&G, Marshalls, Sameer Africa, etc... It would have been as large as ALL the AIMS firms combined!

Of course, interested bidders for the management contract could have been Serena, Fairmont among others... but again what would kibz or kimunya have gotten?

In Zambia, Lusaka's premier hotel, the Taj Pamodzi, majority shares were sold to the Taj Group of India but it remains a public listed entity... It seems Zambia have better government governance than we do...

Who knows, KQ - publicly listed - could have taken a stake in GRH & marketed it as their exclusive hotel for its passengers & crew but would k&k benefit?

I am going to boycott the GRH unless it is (re)sold for a fair price in a transparent manner. I will urge ALL listed firms NOT to hold their AGMs there in protest at the farce.

1 comment:

Anonymous said...

I hope this is a joke. You know the valuation of the hotel was for its land and assets. If you may remember too, the whole deal was of monies owed to CBK ( where does the public come in ? )& CBK's not the business of running hotels the last time I checked.
Sure non-disclosure of the deal was not the way to go but again this is Kenya where even the spotlight on mice 'robbing' cheese from State House can't be spared !