Kuramo Capital Acquires 25 Pc Stake in TransCentury

TransCentury, a listed infrastructure company announced the completion of a 25 percent share acquisition by New York based private equity fund Kuramo Captal in exchange for two billion Kenya shillings investment.

Kuramo injected 20 million dollars into the infrastructure firm to help settle eight billion Kenya shillings bond that matured amounting to allotment of 93.7 million Kenya shillings ordinary shares.

An announcement was made by TransCentury that a transaction has received all the statutory and the regulatory approvals, and that the new shares will be allotted to Kuramo with effect from 3rd April this year.

The completion of the acquisition of 24.99 per cent shareholding of the company by Kuramo Capital was an announcement made by the board of directors of TransCentury “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 the part of the 8 billion Kenya shillings Convertible bond which was falling due in a fortnight and had piled immense pressure to the company’s management

TransCentury made a second announcement two days to the bond maturity, saying it had reached a settlement with bond holders that halved its principal debt to 4.04 billion Kenya shillings.
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Written by Amina Martha.