East Africa Cables PLC and its parent company TransCentury PLC have completed a debt restructuring transaction which involves refinancing of company debt. This has majorly resulted in a 44% reduction in debt(Ksh 1.65 Billion) and the extension of remaining debt tenure to 10 years.
The transaction has also resulted in 2 years moratorium on principal repayment and 6 months on interest payments. Over 80% reduction of debt service cash requirement is also expected in the next two years.
The company’s turnaround plan will allow the business to realize the pent-up value in the current contracted order book that is in excess of Ksh. 5.2Billion
East African Cables and TransCentury jointly issued a cautionary statement on 26th April 2019 urging investors to exercise prudence when trading securities of the two public companies.
In 2017, the Board and Management of TransCentury embarked on a journey to develop the Group’s 2018-2022 strategic plan. The 5-year plan is branded “Ahidi” which is a Swahili name meaning “to promise”, with a strategic plan to deliver consistent, sustainable and attractive returns to all stakeholders, through transformative and innovative investments.
