Transcentury board chairman Zephaniah Mbugua (right) with CEO Nganga
Njiinu (left) during a past annual general meeting on June 30, 2016.
FILE PHOTO | DIANA NGILA | NMG
New York-based private equity firm Kuramo Capital has taken half of the board positions at investment firm TransCentury following the acquisition of a 25 per cent stake in the company.
Kuramo’s
investment of Sh2 billion in the Nairobi Securities Exchange-listed
firm has earned it three non-executive director positions on the
six-member board.
Shaka Kariuki, Kuramo’s co-chief
executive officer, Wale Adeosun (chief investment officer) and Kamal
Pallan (chief operating officer) are now part of the team directing
TransCentury’s strategy. “The board is pleased to announce the
appointment of… three non-executive directors with immediate effect,”
TransCentury said in a statement.
Zephania Mbugua
(TransCentury’s chairman), Ng’ang’a Njiinu (the firm’s chief executive)
and Dennis Awori complete the list of directors of the company.
TransCentury’s board has traditionally consisted of seven members.
Founder
members including former Kenya Revenue Authority boss Michael Waweru,
businessman Robin Kimotho and Kenya Tea Development Agency chairman
Peter Kanyago retired from the board mid last year. Carol Musyoka, a
corporate consultant, quit in 2015. The new Kuramo directors hold a wide
range of powers including the right to veto decisions such as hiring
and removal of TransCentury’s chief executive and chief financial
officer.
Kuramo also has veto powers on matters like
the CEO’s compensation, sale of assets and issuance of new shares. The
PE fund must also give its approval of any business plan, loans to
directors exceeding Sh1 million and initiation or settlement of lawsuits
with a value exceeding five per cent of the company’s total assets.
Kuramo’s board representatives were unveiled as
TransCentury announced that the US firm will be allotted 93.7 million
ordinary shares with effect from April 3 following receipt of all the
statutory and regulatory approvals.
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