FEP’s multiple projects including a planned 146-bed hotel in Sagana, Kirinyaga County have missed completion deadlines over lack of capital.
The loss making firm recently turned to a new board and management banking on the overhaul of top brass to finish stalled projects and revamp the company.
Its previous rights issue in 2016 collapsed, raising only Sh120 million against a target of Sh6 billion.
Diaspora-backed investment firm Fountain Enterprises Programme (FEP) Holdings plans to turn to its shareholders for a Sh2 billion cash call to boost its turnaround efforts, coming just years after they snubbed a previous billion-shilling rights issue.
The announcement made by FEP outgoing chairman Erastus Mwongera in its 2018 annual report indicates that the funds will go towards reviving stalled projects.
“Our strategic target has always been to raise Sh6 billion, a target which we have not hit even after conducting two Private Placement Offerings/rights issue. We are thus in the process of conducting a third PPO/ rights issue,” said Mr Mwongera who retired from FEP as its board chairman last month.
“You will thus be aware of the ongoing Rights Issue and a Private Placement offering that began on the 17th of this month (September). This two-month long exercise is expected to conclude on 16 November 2018.”
FEP’s multiple projects including a planned 146-bed hotel in Sagana, Kirinyaga County have missed completion deadlines over lack of capital.
The loss making firm recently turned to a new board and management banking on the overhaul of top brass to finish stalled projects and revamp the company.
“We are in need of more funding to finance pending projects like the Sagana Hotel and working capital among others.”
Its previous rights issue in 2016 collapsed, raising only Sh120 million against a target of Sh6 billion.
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