Administrator of the East African Cables PLC (EAC), a key player in the region’s electrical cable manufacturing industry, is looking for potential investors to help revive its operations after being placed under administration due to financial distress.
In a notice issued on Friday, July 25, by its joint administrators, the administrator has invited expressions of interest (EOIs) from strategic or financial investors willing to participate in its rescue or acquisition process.
East African Cables, headquartered in Nairobi, is renowned for producing copper and aluminium cables used in domestic, industrial, and utility applications.
The company operates two production facilities and commands a strong presence in markets including Kenya, Uganda, Tanzania, South Sudan, and Rwanda.
Despite its strong brand and customer loyalty, the company has struggled to meet its obligations, particularly to its senior secured lender.
East African Cables Seeks Investor Lifeline Amid Insolvency Woes
The administrators noted that significant capital will be required to resolve its insolvency.
“The objective of the administration is to explore the possibility of rescuing the company and achieving a better outcome for creditors than they would get in a liquidation,” the notice reads in part.
“Review of EAC indicates that significant capital will be required to resolve the insolvency of the Company sustainably, given its high leverage and severe working capital constraints.”
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According to the administrators, EA cables intends to run an investor/transaction process to explore three credible options:
- Recapitalization to reduce its debt burden and inject working capital,
- Refinancing of its existing debt into more sustainable terms, or
- A full going-concern acquisition of the business and its assets.
The Administrators are also open to proposals for any other credible/viable transaction structures that achieve the objectives of the administration of the Company.
Submission Requirements
Interested parties are requested to submit their EOI including the following:
- Name and contact details of the interested party
b. A brief profile of the interested party
c. An indication of interest, specifying the preferred transaction structure
d. A strategic rationale for the interest in this investment opportunity
e. Any relevant information that demonstrates the party’s credibility and eligibility for the potential transaction (including financial capability)
f. Guidance on timelines and the information required for due diligence
g. Any other information deemed appropriate or necessary
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Submission Deadline
All EOIs must be submitted on or before 5:00 PM (East African Time), 8 August 2025 to:
The Joint Administrators
East African Cables PLC (In Administration)
C/o George Weru and Muniu Thoithi
PwC Tower, Waiyaki Way/Chiromo Road
P.O. Box 43963-00100, Nairobi, Kenya
Email: [email protected]
Tel: +254 (20) 285 5000
Fax: +254 (20) 285 5001
“In line with the provisions of the Insolvency Act, pursuit of the envisaged investor/transaction process in respect of EAC Kenya is subject to the approval of the creditors of the Company,” the notice read further.
“The Joint Administrators reserve the right to accept or reject any EOI without assigning any reason.”
Only shortlisted parties will be invited to participate in the next stage of the transaction process.
Detailed information will be provided to shortlisted parties upon execution of a Non-Disclosure Agreement (NDA).
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