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TransCentury Gets Final Approval for Rights Issue

by kenya-tribune
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TransCentury Group CEO Ng’ang’a Njiinu. [Photo/ Courtesy]

The Capital Markets Authority (CMA) has granted approval to TransCentury Plc to undertake a rights issue.

The rights will be issued on the basis of five new ordinary shares for every one existing share as approved in the last shareholder meeting. 1,876,013,830 new ordinary shares will be on offer at a discounted price of Ksh1.10 per share.

The funds raised from the Rights Issue will go towards supporting the last phase of TransCentury turnaround plan, recapitalizing the business, reducing debt, unlocking working capital for underlying businesses to drive revenues and margin growth and increase shareholder value.

“TransCentury has made remarkable progress in delivering enormous commercial opportunities, deleveraging the business, with the focus now being to fundraise to accelerate return to profitability,” the Nairobi Stock Exchange said in a public notice on Wednesday, November 16, 2022.

The Rights issue will also avail funding to complete Group wide business restructuring to simplify the business and materially compress statutory audits and reporting timelines.

“We are happy to have reached this point where we are ready to launch the Rights Issue and offer our shareholders a company that has exhibited tremendous agility and resilience and a company that is well prepared for funding. In line with this, we recently launched a new strategic plan 2022-2025 and are confident that the initiatives we have laid out that include refocussing on our core business – Investing for growth will generate significant shareholder value,” Mr Nga’ng’a Njiinu, TransCentury Group Chief Executive Officer said.

A rights issue is an offer given by a company to existing shareholders to buy a proportional number of additional shares at a given price, within a fixed period. Rights are often transferable and a shareholder may sell them on the open market.

Read: TransCentury Subsidiary To Build Ksh30B Housing Units In DRC

>>> Stuck In Deep Loss, Transcentury Takes Rights Issue Route

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