Nairobi, Kenya — ESI-AFRICA.COM — 28 October 2010 – Kenya Power & Lighting Company (KPLC) “’ the country’s monopoly power distributor “’ is to raise US$309 million (R2.1 billion) in a capital restructuring that will result in the government owning a majority stake in the company.
“The reorganisation involves the conversion of preference shares into ordinary stock, a rights offer and a share split,” Dyer & Blair Investment Bank executive director Kabaki Wamwea said in an interview. Dyer & Blair is advising KPLC on the process.
“We expect to raise roughly US$309 million (R2.1 billion), if you combine the preference shares with the rights,” Wamwea confirmed.
Kenya “’ East Africa’s biggest economy “’ plans to increase installed-power capacity almost nine-fold to 9 000 megawatts (MW) over the next 20 years, while targeting annual economic growth of %. The government is forecasting growth of at least 4.5% this year.
“The state’s stake in KPLC will climb from 40% to 50.1% after the restructuring,” Wamwea said. “The government is converting about 795 million preference shares into 76.6 million ordinary stock and won’t take up its rights in the planned offering of 20 new shares for every 51 held by existing stockholders,” he added.
“All the transactions are subject to regulatory and shareholder approval,” Wamwea added.
KPLC is expected to announce details of the restructuring at a media briefing in here tomorrow.