TransCentury Plc’s share shed 10 percent at the Nairobi Securities Exchange (NSE) in its first trade since the announcement of a bid by Equity Bank to place it under receivership, which has since been halted by the courts.
Equity had published respective receivership and administration notices for TransCentury and its subsidiary East Africa Cables Ltd on Saturday, but the firms have since sought and received High Court injunctions barring these actions.
The TCL stock, which did not record trades on Monday and Tuesday, Wednesday moved 18,000 shares at an average of Sh0.80, having opened the day at Sh0.89. Before Wednesday, it had last traded on June 16, with limited price movement in the preceding days.
“The largest loser was TransCentury Limited with a decrease of 10.1 percent (a year-to-date loss of 13.98 percent),” said AIB AXYS Africa in a note on yesterday’s trading.
The investment firm said in a notice issued on Monday that it had sought the injunction against the receivership bid on the basis that the bank illegally appointed a receiver while the two parties were negotiating in addition to a breach of procedures set out in the law.
TCL added that it was in active engagement with Equity before the notice was published, without any reference to the company.
In a separate notice on Tuesday, its subsidiary EA Cables said it had received orders barring Equity from putting it under administration on grounds that they were in talks.
