- TransCentury Plc’s right issue is set to be reopened following approval from the Capital Markets Authority (CMA) after the initial issue failed to hit a 50 per cent threshold.
- Unfortunately, the rights issue performed below expectations, and as a result, CMA has invoked its powers under Section 14 of the Public Offers and Listings Regulations to allow TransCentury to reopen the issue.
- The rights’ issue will be open from March 20 -30 this year with additional information provided in the secondary prospectus to be issued by March 17 as the firm seeks shareholders’ approval to enable the conversion of shareholder loans to ordinary shares as a mode of payment for rights.
TransCentury Plc’s right issue is set to be reopened following approval from the Capital Markets Authority (CMA) after the initial issue failed to hit a 50 per cent threshold.
TC shareholders had until January 23, 2023 to take up 1.87 million new ordinary shares as rights issue that commenced trading on Thursday (29th December, 2023) at the Nairobi Securities Exchange (NSE).
The infrastructure investment firm is seeking to raise $20Million (Sh2 billion) which will be applied towards recapitalizing the business, reducing debt and unlocking working capital for TC’s underlying businesses.
“The Board of TransCentury PLC has sought and received an approval from the Capital Markets Authority to reopen the TC Rights Issue offer that closed on 3rd February 2023 for a period of 14 days starting 21st February 2023. This is to allow TC shareholders to participate in the reopened offer as well as to meet the objectives set for the Rights Issue. All eligible TC shareholders can participate in the reopened offer,” the firm said in a statement.
The rights’ issue will be open from March 20 -30 this year with additional information provided in the secondary prospectus to be issued by March 17 as the firm seeks shareholders’ approval to enable the conversion of shareholder loans to ordinary shares as a mode of payment for rights.
The shares on offer are at a price of Sh1.10 per share. The results of the rights issue were to be announced on 9th February 2023 and the new shares from the rights issue were to commence trading at the NSE on 28th February 2022.
“Unfortunately, the rights issue performed below expectations, and as a result, CMA has invoked its powers under Section 14 of the Public Offers and Listings Regulations to allow TransCentury to reopen the issue,” CMA said in a statement.
Kuramo Capital are among those that took up the issue increasing its stake at the company to 48 percent from 25 percent after injecting $10Mn in the ongoing rights issue.
“I would like to encourage fellow shareholders to carefully study the Information Memorandum document availed to them as they make this investment decision. I am confident that the business is entering the growth phase and this recapitalization will give TC the much-needed boost to leverage vast opportunities across the subsidiaries, markets and the sectors we operate in,” said TC Chairman, Shaka Kariuki.
Earlier this year, TC Group Chief Executive Officer Nganga Njiinu said the company has strengthened its governance structures reassuring shareholders as it strives towards profitability.
“Our shareholders taking up their rights will be investing in a company that has strengthened governance structures and exhibited agility and resilience even in the current economic environment. With our recently unveiled strategic plan, we are refocusing on our core business – Investing for growth to take advantage of the enormous opportunities that are presenting themselves in the region,” Njiinu said.
TC shareholders will be entitled to five (5) new shares for every one (1) existing share held as of 13th December 2022.
Headquartered in Kenya, TransCentury PLC is an Investment Holding Company, with a focus on Infrastructure specifically the Energy, Transport, Water, Industrial, and Agriculture sectors.
The firm is listed on the Nairobi Securities Exchange (NSE) and has investments across East,Central and Southern Africa.
TC released half year results for the year to June 2021 in September 2022, registering a net loss of Sh764.3 million representing a 47 percent decline in losses from the same period previous year.
The improved performance was attributed to a revenue increase of Sh536 million to Sh2.54 billion attributable to improved performance of AEA Limited and Tanelec Tanzania.
In August 2022, AEA Ltd, a subsidiary of TC signed a memorandum of understanding in partnership with Symbion Architect to construct housing units in DRC.
