TransCentury shareholders have given their approval for the conversion of shareholder loans as a mode of payment for rights in the reopened rights offer.
During the TC extraordinary general meeting held on Thursday last week, 94.7 percent of votes cast approved the decision.
The move will enable shareholders with existing shareholder loans to follow their rights by turning their loans to equity, in addition to using cash.
TransCentury Group chairman Shaka Kariuki said, “conversion of shareholder loans together with cash raised from the rights offer will support our fundraise and debt reduction efforts, which were major objectives of the rights issue”
“In addition, the reduced debt will strengthen the balance sheet and position the business favourably for funding to support in executing existing orderbook” added Mr Shaka.
The TC rights issue is set to reopen on March 20, 2023, and will close on March 31, 2023, as per the published timetable. The results will be announced on April 7, 2023.
The reopened offer is available to all TC shareholders who are in the shareholder register by March 17, 2023, and to shareholders who had participated in the offer that closed on February 3, 2023, and are interested in applying for additional new shares.
In January, the infrastructure development company went to the Nairobi Securities Exchange seeking Kes2.063 billion from its shareholders.
The firm said the new funds will be applied towards recapitalizing the business, cutting debt and unlocking working capital.
Last month, Business Daily said private equity company Kuramo Capital is set to convert its shareholder loans worth Kes1.9 billion into TransCentury shares even as the infrastructure firm struggles to raise Kes2 billion in a cash call.
Headquartered in Kenya, TC is an Investment Holding Company, with a focus on infrastructure in the energy, transport, water, industrial, and agriculture sectors across East, Central and Southern Africa.