TransCentury shareholders given deadline to take up 1.87Mn new shares

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  • TransCentury Group Plc (TC)’s rights issue commenced trading on Thursday morning at the Nairobi Securities Exchange (NSE).
  • TC shareholders have until January 23, 2023 to take up 1.87 million new ordinary shares 
  • The firm is seeking to raise Sh 2 billion which will be directed towards recapitalizing the business, reducing debt and unlocking working capital.  

TransCentury Group Plc (TC) shareholders have until January 23, 2023 to take up 1.87 million new ordinary shares as rights issue commenced trading on Thursday (29th December, 2023) at the Nairobi Securities Exchange (NSE). 

The infrastructure investment firm is seeking to raise Sh 2 billion which will be applied towards recapitalizing the business, reducing debt and unlocking working capital for TC’s underlying businesses.

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 refocussing on our core business – Investing for growth to take advantage of the enormous opportunities that are presenting themselves in the region,” Njiinu said. 

The shares on offer are at a price of Sh1.10 per share. The results of the rights issue will be announced on 9th February 2023 and the new shares from the rights issue will be listed to commence trading at the NSE on 28th February 2022.

“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. 

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, Trans/.Century 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. 

Aerial view of Nairobi City . Source: Demosh

Improved Performance  

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.

Kenya: EA Limited to develop $250 million affordable houses in DRC

The project is aimed at housing and offices of Conglais De Controle (OCC) staff and is valued at USD 250 Million over a period 5 years from 2022 – 2026. OCC is encouraging and supporting its 5,000 staff, who are stationed across the key cities in DRC, to own houses.

The initial batch of 500 plots is made of 200 in Lubumbashi, 100 in Goma and 200 houses in Kinshasa.

AEA Limited CEO  Nicholus Kithinji said that over 65 per cent of the population in DRC lives in inadequate housing and supplying housing for this population presents a huge opportunity for investors.

World Bank Report 2015 on Stocktaking of the Housing Sector in Sub-Saharan Africa, projects that Africa could have as many as 1.2 billion urban dwellers by 2050 and 4.5 million new residents in informal settlements each year, most of whom cannot afford basic formal housing or access mortgage loans.

In addition, DRC’s population is expected to reach nearly 145 million inhabitants in 2050, with 60 per cent urban residents and 40 per cent rural population compared to 42 per cent and 58 per cent in 2014.

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