PE-backed TransCentury seeks to voluntarily delist from Nairobi Securities Exchange
Posted on: 16 July, 2020 at 12:56 PM
TransCentury PLC, partly owned by private equity fund Kuramo Capital, is set to voluntarily delist from the Nairobi Securities Exchange (NSE) in line with ongoing strategic initiatives upon receiving approval from its shareholders.
The board of TransCentury has passed a resolution recommending to the company shareholders to consider and approve the delisting of TransCentury from the NSE.
The recommendation is in line with the ongoing strategic initiatives that the company has been executing, anchored on four key areas:
– Delivery of commercial opportunities and driving pipeline growth
– Debt reprofiling to match cashflows
– Fundraising to unlock growth
– Accelerating execution of emerging opportunities.
The group has made significant progress across all its businesses in delivering commercial opportunities and in debt reprofiling. Over 90% of the debt has been successfully restructured thereby strengthening the balance sheet and allowing more cash to be redirected to working capital.
The focus now remains to attract funding that is aligned to the group strategy to be able to realise full value from opportunities at hand. A significant source of such capital, however, remains unavailable to the business while it remains listed, including the fast-growing pools of sector specific capital targeting private/ non listed businesses.
The group chief executive officer Nganga Njiinu said, “While we have seen liquidity reduce in the capital markets across the region, we have also seen an increase in funding that is available for private/ non-listed businesses, especially in the sectors that we focus on and have received interest from potential financiers who would provide capital that is structured in line with our strategic plan.”
“We therefore want to position the business to access these additional sources of growth capital to be able to capitalise on the great opportunities we have created in the last three years,” Njiinu added.
In addition to accessing funding for the company, the TransCentury board and management 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 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,” said Njiinu.
The TransCentury board has called for an extraordinary general meeting on 30 July 2020 for shareholders to review and consider the proposal.
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