East African Cables PLC has sold a 51% stake in its Tanzanian subsidiary to Msufini (T) Limited as it embarks on a turnaround strategy.
- •Msufini, a Tanzanian chemicals manufacturer, purchased 16.2 million shares from the the regional cable firm at a par value TZS 10.
- •The Tanzanian unit has faced capital constraints, adding on to its parent company’s capital constraints.
- •Msufini Tanzania Limited was set up in 2021 as a joint venture between a Tanzanian company called Junaco and a Malaysian company called Serba.
In mid-2023, EA Cables obtained a court injunction to stop the firm’s administration by Equity Bank to auction assets worth Ksh. 3 billion to recover outstanding loans. The lender had taken over the loans as part of a major debt restructuring plan in 2020.
With the Tanzanian unit off its plate, East African Cables will now focus on its Kenyan operations. The listed company signed a Ksh. 132 million deal from Kenya Power to supply cables for electrical infrastructure.