NAIROBI, Kenya, May 20- Cable Experts Limited is seeking to take control of East African Cables PLC through the acquisition of a 68.57 percent stake currently held by TransCentury PLC, in a move aimed at reviving the struggling cable manufacturer.
The proposed transaction, announced Tuesday, will see Cable Experts acquire 173 million ordinary shares in East African Cables through a Share Purchase Agreement signed with TransCentury's court-appointed receivers.
East African Cables, which is listed on the Nairobi Securities Exchange, is currently under administration, while TransCentury is in receivership.
"The transaction includes the retirement of EAC's existing secured bank indebtedness and is intended to enable the continuation of EAC's cable manufacturing business," the company said in the public notice.
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Cable Experts said it does not intend to make a mandatory takeover offer to minority shareholders despite gaining effective control of the company.
The firm has instead applied to the Capital Markets Authority (CMA) for an exemption under takeover regulations.
The acquisition comes as East African Cables seeks a path back to stability after years of financial distress that led to the suspension of trading of its shares at the Nairobi bourse.
East African Cables is currently undergoing a deep financial and governance crisis after defaulting on a loan of about Sh 2.2 billion owed to Equity Bank.
In response, the lender moved to safeguard its exposure by appointing an administrator, assuming operational control of the company's Nairobi factory, and pursuing court-sanctioned recovery actions, including the disposal of company assets.
EAC's parent company, TransCentury PLC, is also under receivership after failing to repay approximately Sh 2.8 billion owed to Equity Bank, further weakening the group's overall financial position.
"CEL intends to maintain and increase the local workforce as well as restore EAC as a reputable market leading brand."
Likewise, the deal is expected to safeguard operations at one of Kenya's oldest cable manufacturers, whose products are widely used in the construction, energy and infrastructure sectors.
The transaction is being undertaken within insolvency proceedings supervised by the High Court, with administrators and receivers overseeing both firms as part of the restructuring process.
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If approved by regulators, the acquisition could mark a fresh turnaround attempt for East African Cables and potentially restore investor confidence in the company.
