TransCentury Plc, one of the listed companies in the AIMS segment on the Nairobi Securities Exchange has notified shareholders of it’s intention to de-list from the bourse as it seeks new strategies to reverse dwindling fortunes.
The company’s shareholders will meet at the end of this month for an Annual General Meeting to vote on the de-listing plan.
“While we have seen liquidity reduce in the capital markets across the region, we have also seen an increase in funding available for private and non-listed businesses, especially in the sectors that we focus on,” said TransCentury Group CEO Nganga Njiinu.”
“The recommendation is in line with the ongoing strategic initiatives anchored on delivery of commercial opportunities, debt profiling, fundraising and accelerating execution of emerging opportunities,” said the firm in a statement yesterday.
The de-listing comes on the back of falling revenues that have eroded the firm’s capital base over the years, wiping out billions of shillings in shareholder value.
TransCentury floated 375 million shares in 2011 at the introductory price of Kes 50 per share, putting the company at a Kes 18.7 billion valuation.
As at close of trading yesterday, shares were selling for Kes 1.76, valuing the company at Kes 660 million.
The firm’s management says the move to de-list has also been pushed by depressed liquidity in the capital markets, prompting search for other capital venues.
The firm recorded Kes 297 million in profit after tax for the half year ended June 2019. This was after a debt restructuring deal saw its subsidiary, East African Cables, reduce its debt by Kes1.65 billion and a 10-year extension to the tenure of remaining debts.