TransCentury directors pushed out by new US owners

Michael Gitau Waweru and two other directors have been pushed out of the five-member Transcentury board. Mr Waweru's exit from the company he helped found comes only six months after his appointment.

His exit is part of broader board changes where two other directors, Robin Kimotho and Peter Tiras Kanyago, have also opted not to seek re-election in the upcoming Annual General Meeting scheduled for end of June.

TransCentury will be holding its first public meeting with its new shareholders who agreed to convert about Sh2 billion worth of debt to equity in March. The firm is yet to announce the stake acquired by American Asset Management, Kuramo Capital, whose investment at the time was worth more than the value of TransCentury.

Officials of the firm have declined to reveal what stake the American firm was granted before accepting to ink the deal. Going by the value of the investment, Kuramo Capital could have bargained to take a controlling stake in the distressed debtor – whose value remains below Sh1.4 billion.

Poor results have eroded investor sentiment in the firm that was listed on the NSE at Sh50 a share through introduction, before the steady decline to the current Sh4.85, more than 90 per cent value erosion.

Mr Waweru, who is also a previous Commissioner General of the Kenya Revenue Authority, quit in a notice published yesterday even before his appointment was approved by the shareholders. It is only Zephaniah Mbugua, the board chairman, who has remained in the company among the original owners.

Dennis Awori, who joined the board last December, will be offering himself for re-election, according to the notice placed by the firm yesterday. Mr Awori was appointed to replace Carol Musyoka, who had resigned over unclear reasons on November 30 last year.

It is not clear whether the massive exits from the board are related to the turmoil that TransCentury is going through, after sinking into major losses over investment decisions that went wrong. Soon after Ms Musyoka’s resignation, Dr Gachao Kiuna was sacked from the firm as chief executive on reasons believed to be tied with the underperformance of a company that was once the marvel of the Nairobi Securities Exchange.