Nairobi Securities Exchange listed firm, TransCentury, has announced plans for a proposed reorganisation in an effort to enhance growth by utilising its resources more efficiently.
In the proposed changes, the company’s subsidiaries will be structured into operational groups and consolidated into TransCentury (TCL) Power and TransCentury Engineering and Contracting divisions.
Besides, the company, whose main target is development infrastructure in the energy sector, will integrate the financial, technical and managerial capacities of its various subsidiaries into independent units. “This shall be done through the transfer of investments to wholly-owned subsidiaries of the company in an internal reorganisation by way of swaps,” an announcement in the local dailies stated Monday.
With an investment portfolio in 14 countries in East, Central and Southern Africa, the firm’s key focus sectors include power infrastructure and engineering. “The proposed reorganisation is also aligned with the company’s overall strategy of consolidating its core businesses to boost its return on investment for shareholders,” the statement noted.
The board said the completion of the proposed reorganisation is conditional to receipt of the regulatory approvals from the various government and regulatory authorities in the countries where the subsidiaries are based.
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In Kenya, the company has sought approval from the Capital Markets Authority. In the new structure, the subsidiaries involved in the manufacture of power cables, transformers, and switchgears will be consolidated into the Power Division under TCL Power Ltd. The wholly-owned subsidiary of the company is incorporated in Mauritius.
Subsidiaries involved in the provision of mechanical engineering, civil engineering, logistics, and cranage and erection services as well as distribution of industrial equipment will be consolidated into the engineering and division under TransCentury Engineering and Contracting Ltd.
This is a wholly-owned subsidiary of the company incorporated in Mauritius. TransCentury board made reference to an approval they received from its shareholders during the company’s annual general meeting on May 24 this year to undertake any reorganisation.
TransCentury has two divisions in its investment portfolio – Power (such as the investment in East Africa Cables among other cable firms) and specialised engineering - investment in Avery which retails weighing scales and also handles construction of power substations.
Civicon, another subsidiary is involved in transporting heavy industrial loads. TransCentury has a 60 per cent stake in Civicon, which has been active in the oil and gas sector.