KenGen begins hunt for Sh28.8bn

KenGen begins hunt for Sh28.8bn

What you need to know:

  • KenGen intends to use the Sh8.6 billion cash that it is seeking from the issue to finance capital expenditures in geothermal and wind power generation.
  • National Treasury has taken up its rights by converting its loans of Sh20.1 billion to equity in the power generator. The government owns 70 per cent of KenGen.

Listed power generating company KenGen has opened its Sh28.8 billion cash call.

KenGen will be selling 4.4 billion new shares at Sh6.55 to its existing shareholders in the ratio of two for each share held.

The rights issue will be open for three weeks to close on June, 10.

National Treasury has taken up its rights by converting its loans of Sh20.1 billion to equity in the power generator. The government owns 70 per cent of KenGen.

KenGen intends to use the Sh8.6 billion cash that it is seeking from the issue to finance capital expenditures in geothermal and wind power generation.

Investors willing to participate in the rights issue but are not shareholders can buy rights of owners who are not willing to exercise their option at the Nairobi Securities Exchange.

Non-shareholders also have an option of buying the stake that will not be taken up at the end of the issue period through what is known as a rump.

Existing owners who do not participate in the offer will have their ownership diluted.

Listing and commencement of trading of new shares at the NSE will be on July, 6.

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