Transcentury CEO, Nganga Njiinu at a past event. FILE PHOTO | DIANA NGILA | NMG
Investment firm TransCentury will announce the results of its rights issue –which seeks to raise Sh2 billion— on Wednesday next week according to an updated timetable.
The Nairobi Securities Exchange-listed firm was initially set to announce the performance of the cash call on February 9 but got an extension as it sought more time to accept payments from shareholders.
The offer was to close on January 23 but the date was moved to February 3.
The results publication will show the performance of the cash call which the company says is earmarked for recapitalizing the business, reducing debt and unlocking working capital.
TransCentury shareholders were offered 1.87 billion new ordinary shares at a price of Sh1.10 each.
Private Equity firm Kuramo Capital is expected to be the biggest participant in the rights issue, having outlined plans to invest up to Sh1.1 billion which could bring its shareholding in the investment firm to at least 48 percent.
Weak participation by other minor investors could however bring Kuramo’s hold on TransCentury above the 50 percent mark.
The private equity firm had however received the approval of the Capital Markets Authority to increase its ownership in the company without making a buyout offer to minority investors.
TransCentury’s share price had risen to trade above the rights issue price in the weeks to the closing of the offer period, incentivising investors to take up their rights if they wanted to defend or boost their stake in the firm.
The company’s stock initially at a significant discount which made it cheaper the shares on the open market.
→ kmuiruri@ke.nationmedia.com
No comments :
Post a Comment