NAIROBI, Kenya, Jul 9 – TransCentury PLC has announced that it will voluntarily delist from the Nairobi Securities Exchange (NSE), citing reduced liquidity in the capital market.
In a statement, Group Chief Executive Officer Nganga Njiinu says the company is now focused on attracting funding that is aligned to the Group’s strategy, which will otherwise remain unavailable if the firm continues being listed.
According to the CEO, remaining listing locks out the firm from fast-growing pools of sector-specific capital targeting private/ non-listed businesses.
The company’s board arrived at the decision following observations that there has been an increase in funding for businesses, especially for those in the sectors they focus on.
The company has a consortium of companies, including cable makers East African Cables and Kewberg Cables, as well as engineering firm Civicon Kenya, among others.
“The decision to delist from the NSE is in line with the next phase of our strategy. This, however, does not change our business mandate and we will continue to engage and deliver value to all our stakeholders,”the CEO said.
The investment firm, Njiinu said, had received interest from potential financiers who would provide capital that is structured in line with its strategic plan.
The company’s strategic plan is anchored in 4 areas which include delivery of commercial opportunities and driving pipeline growth, debt reprofiling to match cashflows and fundraising to unlock growth among others.
“We, therefore, want to position the business to access these additional sources of growth capital to be able to capitalize on the great opportunities we have created in the last 3 years,” added Njiinu.
In addition to accessing funding for the Company, TC Board and Management said it envisions delisting will provide the Company the opportunity for quick actions on strategic interventions and to refocus more resources to execution of strategy and accelerating growth.
The firm’s Board has called for an Extraordinary General Meeting on July 30, 2020 for TC shareholders to review and consider the proposal.The decision follows an era of financial turbulence at the firm.The company just returned to profitability a year ago when it posted Sh297.6 million net profit for the six months ended June 2019.The firm, which had been an investment giant a decade ago, had been making deep losses earlier, including an Sh684.8 million loss posted in a similar period a year earlier.Last month, the firm announced it would delay publishing its financial results for the year ended December 31 2019, after […]
