TransCentury shareholders are expected to approve the sale of 94 million shares valued at $20 million during an extraordinary general meeting (EGM) that took place on Friday (September 16).
The shares will be held by Kuramo Africa Opportunity Kenyan Vehicle Ltd — a private company incorporated in the Republic of Mauritius and a special purpose vehicle managed by Kuramo Capital Management Ltd LLC.
The Board of Kenya’s investment firm TransCentury Ltd has approved the sale of the company’s 25 per cent shareholding to the private equity fund Kuramo Capital Management LLC.
TransCentury shareholders are expected to approve the sale of 94 million shares valued at $20 million during an extraordinary general meeting (EGM) that took place on Friday (September 16).
The transaction, which is still subject to regulatory approvals, will also result in the issue of 70,120 cumulative redeemable preference shares in the share capital of TransCentury.
In a statement issued on September 15, (Thursday) the company said the proceeds of the share sale would be used to refinance part of the company’s debts.
Debts and loans repayment
The shares will be held by Kuramo Africa Opportunity Kenyan Vehicle Ltd — a private company incorporated in the Republic of Mauritius and a special purpose vehicle managed by Kuramo Capital Management Ltd LLC.
TransCentury owed creditors $80 million, being convertible bonds that were issued by its Mauritius subsidiary — TC Mauritius — to finance the group’s investment in Rift Valley Railways (RVR) — a consortium that won the 25-year concession to operate the Kenya-Uganda railway.
However, on March 24, TransCentury signed an agreement with the bondholders to effectively amend the terms and conditions of the bond to reduce the quantum of the bond liability from $80 million which was due on March 25, 2016 to $40 million. The repayment period was also extended by six months to September 25, 2016.
The initial $20 million of the revised loan balance is to be paid by September 25, 2016, and the balance of $20 million likely to be converted into an unsecured loan repayable over a three-year period.
TransCentury is listed on the Nairobi Securities Exchange and its stock closed the trading session on September 14, 2016, at Ksh11.15 ($0.1) per share.
TtansCentury has operations in Kenya, Uganda, Tanzania, Rwanda, Zambia, Mauritius, Democratic Republic of Congo and South Africa.
