KenGen plans 5.3pc stake sale for Sh2.3bn
Power producer Kenya Electricity Generating Company (KenGen) is has entered into a deal that could see it completed the sale of the 4.4 billion shares that were on offer during its rights issue offer in 2016.
This after South African pension fund, Public Investment Corporation entered into talks with KenGen to buy the remaining 351.2 million shares that were not taken up during the offer.
The deal is valued at Sh2.3 billion, meaning KenGen has hit its initial target to raise Sh28.7 billion.
“KenGen wishes to advise its shareholders and the public that it has, on February 22, 2017 entered into an agreement with the Public Investment Corporation SOC Limited acting in its capacity as the authorized representative of the government employees pension fund, a South African based institutional investor, to allot ordinary shares in KenGen (equivalent to 5.33 per cent of the new issued share capital) at a price of KES 6.55 per share,” KenGen Managing Director Albert Mugo said in a notice to shareholders.
Once the deal is complete, the Public Investment Corporation will have a 5.33 percent stake in KenGen.
The deal is however subject to regulatory approval.
“The proposed allotment may have an effect on the trading of the shares of KenGen,” Mr Mugo said.
The firm’s shares closed unchanged during Thursday’s trading session at the Nairobi Securities Exchange (NSE) at Sh6.55.
KenGen had indicated it planned to spend Sh20.1 billion to pay off its expensive debt while the remaining Sh8.6 billion would be sunk into its ongoing projects.
KenGen has been on a capital raising agenda as it plans massive investments in energy projects.
The firm has ongoing projects in the Olkaria geothermal fields as well as plans to construct a wind park in Meru.
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