East African Cables is set for a major ownership shake-up as a new investor announces plans to acquire a 68.37 percent stake through a Share Purchase Agreement signed on May 19, 2026.
According to the public announcement issued under the Capital Markets (Takeovers and Mergers) Regulations, the proposed transaction involves the acquisition of 173,071,149 ordinary shares currently held by Cable Holdings Kenya Limited, a wholly owned subsidiary of TransCentury PLC.
“TC acts through its court-appointed Joint Receivers to sell the entire 68.37% of the issued and fully paid share capital of EAC (representing 173,071,149 ordinary shares of KES 0.50 each), presently registered in the name of CHL (the “Sale Shares”),” the statement read in part.
The East African Cables’ Crisis
East African Cables is currently facing a severe financial and governance crisis following a loan default of approximately KSh 2.2 billion owed to Equity Bank.
The lender moved to protect its interests by appointing an administrator, taking over control of the company’s Nairobi factory, and initiating court-approved measures to recover the outstanding debt, including the sale of company assets.
EAC’s parent company, TransCentury, is also under receivership after defaulting on about KSh 2.8 billion owed to Equity Bank, worsening the group’s financial position.
As a result of the crisis, trading in the shares of both East African Cables and TransCentury were suspended indefinitely on the Nairobi Securities Exchange, pending the resolution of the insolvency proceedings.
East African Cables Transfer Deal and Suspended Trading
From the notice, the transaction is expected to result in Cable Experts gaining effective control of East African Cables once the deal is completed and all approvals are secured.
The company stated that the acquisition is intended to support the continuation of East African Cables’ cable manufacturing business and facilitate the retirement of the company’s secured bank debt.
East African Cables, which is listed on the Nairobi Securities Exchange, is currently under administration.
Also Read: East African Cables Administrator Opens Bidding to Save Ailing Business
Additionally, trading of shares for both East African Cables and TransCentury remains suspended pending completion of the proposed transaction and related regulatory processes.
“As of the date of this announcement, trading in the shares of EAC and TC remains suspended on the Nairobi Securities Exchange. It is envisaged that suspension will continue through to Completion of the Transaction,” the announcement read.
Cable Experts stated that it does not intend to make a mandatory takeover offer to minority shareholders, despite the acquisition resulting in effective control of the company.
The firm has applied to the Capital Markets Authority for exemption from mandatory takeover requirements under Regulation 5 of the Capital Markets (Takeovers and Mergers) Regulations.
Company Plans Continuity and Debt Repayment
According to the announcement, the proposed acquisition is being treated as a rescue transaction intended to allow East African Cables to continue operating as a going concern.
The company said the structure of the transaction is designed to support business continuity while enabling repayment of existing secured bank obligations.
Cable Experts further stated that its shareholders have experience in the cable trading business and intend to continue investing in East African Cables while supporting efforts to restore the company to its position as a leading brand in the sector.
Also Read: East African Cables Appoints New Chairman
The company also noted that it currently holds no shares or interests in either East African Cables or TransCentury and had no prior ownership interests before signing the Share Purchase Agreement.
“As of the date of this announcement, the Offeror does not hold any shares or other interests in EAC and TC. The Offeror has not, prior to the Signing date of the SPA, held any shares or other interests in EAC and TC,” it stated.
The transaction remains subject to approvals and exemptions from the Capital Markets Authority as well as merger clearance from the Competition Authority of Kenya.
It was also noted that further announcements are expected once decisions on the exemption request and merger approvals are made, and upon completion of the transaction.
Cable Experts indicated that it will work with regulators and the Nairobi Securities Exchange on the process for the orderly resumption of trading in the affected shares after completion of the acquisition and conclusion of administration proceedings.
