PE firm Kuramo cleared to buy 25 pc of TransCentury
What you need to know:
- A year ago, Kuramo injected $20 million into the infrastructure firm to help it settle a Sh8 billion bond that was maturing.
- TransCentury has now announced that the transaction has received all the statutory and regulatory approvals, and that the new shares shall be allotted to Kuramo.
- The transaction will see the combined stake of the firm's top founder shareholders drop to 35pc as Kuramo becomes single largest investor in the firm.
Listed infrastructure company TransCentury has announced the completion of a 25 per cent share acquisition by New York-based private equity fund Kuramo Capital in exchange for a Sh2 billion investment.
A year ago, Kuramo injected $20 million into the infrastructure firm to help it settle a Sh8 billion bond that was maturing, occasioning the allotment of 93.7 million ordinary shares.
TransCentury has now announced that the transaction has received all the statutory and regulatory approvals, and that the new shares shall be allotted to Kuramo with effect from April 3.
“The board of directors of TransCentury is pleased to announce the completion of the acquisition of 24.99 per cent shareholding of TransCentury by Kuramo Capital,” the NSE-listed firm said Tuesday.
“The board of directors also confirms that the conditions precedent to completion of the transaction have been fulfilled and has proceeded to allot 93,776,173 new ordinary shares in TransCentury to Kuramo Capital.”
This transaction will see the combined stake of TransCentury’s top ten founder shareholders diluted to 35 per cent from the current 46.8 per cent as Kuramo becomes the single largest investor in the company.
Kuramo’s foray into TransCentury’s boardroom began on March 15, 2016 when it was announced that the Africa-focused private equity firm was to inject Sh2 billion into the investment firm.
The funds were used to settle part of the Sh8 billion convertible bond that was falling due in a fortnight and had piled immense pressure on the company’s management.
Two days to the bond’s maturity, TransCentury made a second announcement, saying it had reached a settlement with bondholders that halved its principal debt to $40 million (Sh4.04 billion).
