VENTURES AFRICA – TransCentury, a Kenyan investment firm, wants shareholders to give control to company to seal deals not exceeding KSh5billion (about USD$60m).
It plans to ask shareholders, during the next general meeting scheduled for May, to allow board members buy, sell stakes and lend to others without their approval as long as the transaction do not exceed KSh5billion.
Although the company did not state reason for this decision, analysts believe the company is going to be closing several deals this year.
“Delay in closing a transaction could lead to a significant change in the valuation of the assets to be acquired or sold,” Francis Mwangi, an Analyst at Standard Investment Bank told Business Daily Africa.
Since the company listed on the Nairobi Stock Exchange last July, its share has dipped from KSh50 to KSh22.50. In spite of this, TransCentury boss, Gachao Kuina, told Reuters at the Africa Investment Summit that “by half year, profitability will be above what we did the full year, for the simple reasons that our businesses are in the expansion phase where we are growing in the market.” TransCentury recorded KSh616.1 million last year. It is planning to diversify from its niche in the power sector.