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TransCentury moves to delist from the Nairobi Securities Exchange

By Steve Umidha
Friday, July 10th, 2020
TransCentury. Photo/Courtesy

 Steve Umidha @SteveUmidha

Investment firm, TransCentury has announced plans to de-list from the Nairobi Security Exchange (NSE) following years of losses, coupled with the ongoing shocks of the Covid-19 pandemic.

The move is expected to allow the infrastructural investment firm with three operating divisions across 14 countries in East, Central and Southern Africa to rebalance its books was announced yesterday.

While making the move, the firm said the decision is in line with it’s strategy on driving pipeline growth, debt re-profiling and sourcing for emerging opportunities.

“The group has made significant progress across all its businesses in delivering robust commercial opportunities and in debt re-profiling.

Over 90 per cent of the debt has been successfully restructured thereby strengthening the balance sheet and allowing more cash to be redirected to working capital,” its chief executive Nganga Njiinu said.

Bullish entry to NSE

When the firm listed at the bourse a decade ago, it presented itself as a vibrant and bullish entity, attracting many investors who were eying its profits.

The share price once soared to trade at a high of Sh60, a fete achieved a few days after it started trading at the bourse in 2011.

As it plans to delist, all the issued ordinary shares comprising 375,202,766 shares of par valued at Sh0.50 each shall be de-listed from the official list of the alternative investment market segment of the NSE.

In a cautionary note, the firm had warned shareholders and the public to exercise caution when dealing with shares of the company.

"We are advising shareholders and the investing public that TC has commenced a process that may result in material changes in the Company’s listing status,” said the firm.

De-listing of a company is the removal of a listed security from a stock exchange, and the process can be voluntary or involuntary and usually results when a company ceases operations, declares bankruptcy, merges, does not meet listing requirements, or seeks to become private.

Last month, the firm announced it would delay releasing its audited financial statements for the year ended 31st December 2019, attributing the delay to the incomplete audit of its subsidiary, East African Cables PLC.