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TransCentury plans to sell Sh1bn properties in Kenya and Uganda
Thursday, January 26, 2023
Transcentury CEO Nganga Njiinu at a past event. PHOTOFILE | DIANA NGILA | NMG
Investment firm TransCentury plans to sell Sh1.1 billion worth of properties in Mombasa and Uganda as part of its effort to improve its cash flow position from the sale of non-core assets.
This is the latest sale of such assets, after the company put several properties on the market in 2019, including apartment rentals in Nairobi’s Lavington estate and Dar es Salaam.
“The group is in the process of divesting some of its non-operating assets to generate operating cash flows,” the company said in a information memorandum released in connection with its ongoing rights issues aimed at raising Sh2 billion.
Read: TransCentury renegotiates Sh5 billion in loans after default
The investment firm plans to sell a Sh700 million property in Mombasa and a Sh400 million property in Uganda.
The company has completed the evaluation of the property in Mombasa and is waiting for interested parties. No offer has been received for the plant in Uganda.
TransCentury has yet to sell most of the properties it’s put on the market in recent years, indicating a lack of demand or supply that the company can accept.
These include land in Lavington and buildings in Zambia’s Light Industrial Area, which were last valued at Sh107m and Sh14.1m respectively.
The company has generated most of its cash in recent years from financing activities rather than from operations.
The sale of assets and rights issue are expected to increase its cash flow and working capital and allow it to complete projects it has already signed up for.
TransCentury’s primary focus is infrastructure development and offers construction and engineering, as well as transportation.
Its subsidiaries include East African Cables, Tanelec Limited, Civicon Africa Group Limited and Cable Holdings Limited.
Its customers include governments, private companies and households.
The company said the proceeds from the rights issue will be used to settle debts to creditors, to repay a portion of the holding company’s debt to lenders and in turn to source additional working capital financing for the group and its subsidiaries.
Read: TransCentury extends cash call to Sh2 billion through February 3rd
The cash call has been extended to February 3 from the original close on Monday, suggesting the company has yet to meet its target of raising Sh2 billion from shareholders.
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