TransCentury seeks nod to sell subsidiaries
Business
By
By Jackson Okoth
| Apr 26, 2014
By Jackson Okoth
Listed investment firm TransCentury Limited is seeking shareholder approval to sell off three of its subsidiaries.
In a notice to shareholders, the board has listed a number of transactions that it will require shareholders to ratify. This includes the disposal of its 34 per cent shareholding in Rift Valley Railways (RVR), held by its Mauritanian subsidiary Safari Rail Company Limited. It sold its shareholding in RVR to Ambience Ventures Limited for $43.7 million (Sh3.8 billion). This deal was concluded in March 2014.
Under special business during the company’s AGM to be held on May 29, 2014, shareholders will also ratify sale of TransCentury’s Crystal Limited, 95 per cent shareholding in Chai Bora Limited to Catalyst Holdings - a deal concluded last year at $5.2 million (Sh 447 million). TransCentury also sold its entire shareholding in Chai Bora Group to Catalyst in 2013 for $4 million (Sh344 million).
Shareholders will also be approving a plan by TransCentury to acquire minority shareholding held by Aureos East Africa Fund in East African Cables in exchange for shares of the company by way of a share swap, a transaction that is to be concluded on May 31, 2014.
READ MORE
Boost for renewable energy as EPRA launches guidelines
Kebs locks out Swiss firm from lucrative tender over graft case
Meg Whitman: Taxation rates should be increased gradually
Will proposed tax measures sail through Parliament?
Hiking levies is a risky gamble in tough times
Kenyans will have final say on Finance Bill 2024, says Nyoro
Governors accuse oversight agencies of overstepping their mandate
Tech companies commit to spearhead AI in healthcare
Why Finance Bill 2024 is bitter pill for Coast residents
New Eco Levy threatens Kenya's green future and jobs, say experts
In the financial year ended December 31, 2013, TransCentury saw its net profit drop from Sh740.6 million in 2012 to 626.4 million in 2013.
TransCentury has been on a selling spree since 2013, apparently building its war chest for more acquisitions. The company has subsidiaries in Kenya, Tanzania, Uganda, Zambia and South Africa. In recent years, it has grown from the diapers of an investment club to a prime mover in the investment, infrastructure and engineering industries in Eastern Africa.
- Meg Whitman: Taxation rates should be increased gradually
- Will proposed tax measures sail through Parliament?
- Treasury demand for more taxes will hurt Kenyans