KenGen has announced that it is selling 4.4 new shares at a discounted price of Shs 6.55 per share to raise Ksh29 billion for business expansion. The company made this announcement when it opened its Rights Issue today.
The Rights Issue which is expected to run for three weeks will close on Friday June 10, 2016 and according to KenGen Managing Director and CEO Eng. Albert Mugo the offer would give shareholders an opportunity to reap more from the company, which has consistently posted impressive financial results. “By participating in the offer, shareholders will contribute to the growth of the company and reap more from our dividend scheme, which is one of the most competitive, reliable and sustainable in the country,” he said.
Treasury has taken up its full entitlement of rights, representing 70% of the transaction, through the conversion of some of the loans on-lent to KenGen into equity (shares).
The National Treasury has taken up its rights by converting its loans of Sh20.1 billion equity in the power generator. The government owns 70 per cent of Kengen.
KenGen has also announced that that it has lined up a number of energy generating projects for development, making it necessary to raise additional funding through the Rights Issue and other avenues. The plans includes the commissioning of an additional installed capacity of about 720MW mainly from affordable, clean and environmentally friendly sources.
KenGen has also lined up is a drilling programme for 140MW Olkaria VII , which is scheduled for delivery by 2020.