“The government has said we can go ahead. We are working with the transaction advisors to produce an information memorandum…and we are looking at the second quarter of 2016 for the launch,” said Mr Mugo.
KenGen shareholders have approved the firm’s Sh28 billion rights issue slated for next year.
The shareholders approved the rights issue unanimously at KenGen’s annual general meeting in Nairobi on Tuesday, and also agreed to the board’s plan to issue up to 7.8 billion shares, revoking an earlier decision to issue up to 2.2 billion ordinary shares.
KenGen managing director Albert Mugo said that the firm will now move to seek approvals from the Capital Markets Authority with a view of launching the issue by June next year.
Second quarter of 2016
“The government has said we can go ahead. We are working with the transaction advisors to produce an information memorandum…and we are looking at the second quarter of 2016 for the launch,” said Mr Mugo.
The power generator has appointed Standard Investment Bank, Renaissance Capital, Dyer & Blair and Faida Investment Bank as its transaction advisers.
KenGen expects Sh8.6 billion in new cash from the rights issue— to be raised from the minority shareholders— with the remaining Sh20 billion likely to be in form of a debt conversion from the government, which is the majority shareholder.
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Note: The results are not exact but very close to the actual.
