KenGen in plan to raise Sh2.3 billion from 5pc share sale

Business Editor

Nation Media Group

Power producer KenGen is set to sell a 5.33 per cent stake to South Africa’s pension fund, Public Investment Corporation SOC Limited, to raise Sh2.3 billion.

The move comes after the Nairobi Securities Exchange-listed firm raised Sh26.4 billion last year from a rights issue to reduce its debt and fund new power projects.

The company did not disclose the reason for selling the 351.2 million shares –which have been offered at the rights issue price of Sh6.55 per share— to the South African fund.

The amount, however, matches the funding gap in the cash call which fell short of the Sh28.7 billion target.

“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 … 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,” the company said in a statement Thursday.

The proposed transaction is subject to approvals from various regulators.