TransCentury shareholders have approved the conversion of shareholder loans to pay for rights in the reopened Rights Offer.
During the firms Extraordinary General Meeting held last week, 94.7 percent of votes cast approved the resolution.
This will enable shareholders with existing shareholder loans to follow their rights by converting these loans to equity, in addition to using cash.
“Conversion of shareholder loans together with cash raised from the Rights Offer will support our fund raise and debt reduction efforts, which were major objectives of the Rights Issue” said TransCentury Group Chairman, Shaka Kariuki.
Kuramo Capital, the majority shareholder at TransCentury, had announced intentions to provide loans worth Sh1.9 billion to the Nairobi Securities Exchange-listed firm.
The debt will be converted into equity as part of the cash call, marking a rare case where a rights issue does not raise new capital.
“In addition, the reduced debt will strengthen the balance sheet and position the business favourably for funding to support in executing existing order book” added Shaka.
The Rights Issue reopened on Monday, March 20, and will close on March 31, as per the published timetable with the results set to be announced on April 7.
The reopened offer is available to all shareholders 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.
