CMA approves TransCentury Plc Rights Issue
Nairobi, 15 November 2022…Capital Markets Authority has granted approval to TransCentury Plc to undertake a rights issue to raise Kshs2.063 billion by issuing and listing 1,876,013,830 new ordinary shares at Kshs1.10 per share. The rights will be issued based on five new ordinary shares for every one existing share held by each shareholder.
The proceeds of the rights issue will be applied towards settling debts owed to creditors, repaying part of the holding company debt owed to lenders and in return unlock additional working capital financing for the Group and its subsidiary businesses and defraying statutory obligations. The company has not published the financial statements for the year ended December 31, 2021, which were due for submission and publication on 30 April, 2022 and will use part of the funds raised to undertake audits and publish its financial statements.
“The Authority’s approval of the rights issue was contingent on TransCentury Plc meeting several conditions among them, publication of financial statements for the year ended 31 December 2020 as well as availing for inspection by shareholders Management Accounts for the year ended 31 December 2021. We are satisfied that the disclosures made in the issuer’s information memorandum comply with the requirements of Regulation 11 of the Capital Markets (Securities)(Public Offers, Listing and Disclosures) (Regulations) 2002, and contain the information that will enable investors to make an informed decision on the rights issue”, CMA Chief Executive Officer Wyckliffe Shamiah noted.
A minimum of 50 percent of the rights are required to be accepted for the rights issue to be declared successful.
BACKROUND INFORMATION ON THE CAPITAL MARKETS AUTHORITY