TransCentury Receivers to Raise Sh2.2 Billion from Sale of Subsidiaries to Repay Equity Bank Debt

The joint receivers of TransCentury Plc are set to raise Sh2.2 billion through the sale of stakes in two subsidiaries as part of efforts to recover nearly half of the Sh4.8 billion the investment firm owes Equity Bank Kenya.

TransCentury was placed under receivership by Equity Bank in 2025 after defaulting on the loan in 2023.

The receivers, George Weru and Muniu Thoithi of PricewaterhouseCoopers (PwC), announced that they have signed agreements to dispose of the company’s interests in Tanelec Limited and Avery East Africa Limited, subject to the fulfilment of agreed conditions.

Under the transaction, Tanzanian manufacturing firm Msufini Limited will acquire TransCentury’s 70 percent stake in Tanelec Limited for $16.35 million (about Sh2.1 billion). The deal covers TransCentury’s 137,347 shares in the company, which manufactures power transformers, electrical switchgear and metering equipment.

In a separate transaction, SPAC Hill Capital Limited will acquire TransCentury’s 94.4 percent stake in Avery East Africa Limited (AEA) for Sh111.1 million.

The two sales are expected to generate total proceeds of about Sh2.2 billion.

“The total consideration for the Tanelec transaction is $16.35 million (Sh2.1 billion) and completion remains subject to satisfaction or waiver of agreed conditions precedent,” the joint receivers said in a statement.

“Subject to completion of the transactions, the receivers will apply the realisations, together with proceeds from other transactions, towards the settlement of TransCentury’s obligations in accordance with applicable insolvency laws and creditor priorities,” they added.

The acquisition will mark Msufini Limited’s second purchase from the financially troubled TransCentury. About two years ago, the Tanzanian firm acquired East African Cables Tanzania in a deal estimated at Sh115 million.

Tanelec, which operates mainly in Tanzania, was valued at Sh2.25 billion by TransCentury at the end of 2023. The company also has a subsidiary in Zambia, a servicing workshop in Uganda and a manufacturing plant in Kenya.

TransCentury acquired its 70 percent stake in Tanelec in 2007 for Sh78.7 million and subsequently expanded the business. By the end of 2023, the company had recorded revenue of Sh3.1 billion and a pre-tax profit of Sh42 million.

Meanwhile, Avery East Africa, which operates in Kenya, Uganda, Tanzania and Rwanda, was valued at Sh319 million in 2023. The agreed sale price of Sh111.1 million is significantly below the company’s last reported valuation.

TransCentury acquired its 94.4 percent stake in Avery East Africa in 2005 for Sh49.8 million.

The receivers had advertised Avery East Africa for sale last year as part of efforts to dispose of assets and recover funds for creditors. They did not disclose whether SPAC Hill Capital has experience in the infrastructure sector or its plans for the business after the acquisition.

The latest transactions come as receivers continue to dispose of TransCentury assets to settle outstanding debts.

Separately, Equity Bank Kenya placed another TransCentury subsidiary, East African Cables Plc, under administration over a separate Sh2.2 billion debt. Cable Experts Limited has offered to acquire TransCentury’s 68.37 percent stake in East African Cables, with the transaction currently awaiting regulatory approval.