Monday, May 02, 2005

Serena AGM

My leave comes to an end this week and the final AGM I attended was the 36th of TPS Serena at KICC on April 29th. Serena ended the year with a profit before tax of 198 million (up from 43m in 2003) – equivalent to earnign per share of Kshs. 3.37, out of which it will pay a total dividend of 1.1 shillings per share to ordinary shareholders.

T.P.S. Serena ended the week at 52 shillings per share (12 month high is 53). However the Serena MD, Mr. Jan Mohamed, announced that the outlook for tourism in 2005 was restrained owing to higher prices for fuel, electricity, and food items which could impact negatively on the amount of local spending on tourism activities.

The Chairman is Mr. Francis Okomo Okello, and Barclays shareholders (who flamed me earlier) will be happy to know that he is a sesoned chairman and manager as deomnstrated at this AGM. He was very relaxed and natural, and had a good sapprt with shareholder especialy during a thorny Q&A session. He engaged them with humour, swahili proverbs, and was in command of the meeting, after which he mingled sith shareholders at lunch.

Serena Restructuring
In a few months Serena shareholdes will be asked to approve a corprate restucuring that will combine Serena properties in Tanzania and Zanzibar (where Serena is the leading tourism brand). Kenyan shareholders will be asked to exchange their shares in return for shares in a new East African Serena that will be double the turnover and size.

Sticky Point
The questions were typially mundane, and the only hitch for the Board came during election time. Up for re-election was a Britsh national, Mr. Iain Cheyne, who was absent (and had also been absent at the last AGM). Chairman Okello, apologied on his behalf, but was taken to explain the “invaluable contribution” Cheyne made as a director despite his non-attandance of his own election. The Chairman, urged shareholders to re-elect Cheyne (which they did) and directed them to the memo & articles of compnay which specified how they could nominate other directors.

1 comment:

Anonymous said...

Good summary, please keep it up & attend all AGMS! Kenyan shareholders need to understand the process to nominate directors. At the Marshall's AGM in 2004, a minority shareholder wanted to get nominated to the Board based on his loyalty to the Marshalls' Board! He was gently rebuked & asked to follow the process. The NSE & CMA should allow for minority directors on a Board & the minority shareholders should apply themselves to learn about these candidates before they elect them.


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