TransCentury PLC (“TC”) has obtained a court injunction against Equity Bank, preventing the bank from appointing a receiver to the company. The injunction was granted on June 17, 2023, and takes effect immediately.
The injunction was issued on the basis that Equity Bank illegally appointed a receiver while parties were engaged in negotiations, in addition to the brazen breach of procedures set out in the law.
“We are delighted to see that the court has seen the irregularity that marred this very unfortunate and ill-intended process,” said Shaka Kariuki, TC Group Chairman. “We viewed the bank as a partner and have been in what we saw as positive discussions to arrive at an amicable agreement just a day before the receiver was appointed by the bank.”
“TransCentury is a significant business in Kenya’s economic landscape,” added Mr. Kariuki. “We are committed to meeting our obligations, and hence the reason why we embarked on a Rights Issue transaction at the beginning of the year. Despite the challenging economic environment that Kenya and the world at large faces, we raised money from our shareholders and were preparing to settle on an agreement favorable to the business and the bank.”
The injunction puts a stop to the appointment of the receivers and restrains them or their agents from performing any actions in the capacity of receivers of the company. This will allow TC to return to focusing on the business operation and achieving its strategy.
“TC Group is steered by a very resilient team,” said Nganga Njiinu, CEO of TransCentury Group. “I am confident that we shall recover the time lost as we continue focusing on our mandate of impacting Africa with transformative infrastructure.”
TransCentury Group is an iconic indigenous Kenyan company that has built an unmatched platform and has played a lead role in key sectors of Kenya’s economy, including manufacturing, and construction of infrastructure across the region.
At the beginning of this year, 2023, TC embarked on a Rights Issue transaction that aimed at raising funds with the objective of reducing debt and unlocking working capital. The Group has been aggressively working on a turnaround strategy and significant progress has been made in this front.
The Boards of TC take this opportunity to thank all their shareholders, staff, and partners for their unwavering support as they steer the business to growth.
About TransCentury PLC
TransCentury PLC is an iconic indigenous Kenyan company that has built an unmatched platform and has played a lead role in key sectors of Kenya’s economy, including manufacturing, and construction of infrastructure across the region. The Group has a strong track record of delivering value to its shareholders and stakeholders.
Equity Bank is a leading commercial bank in Kenya with a strong track record of financial performance. The bank has a wide network of branches and ATMs across Kenya, and is committed to providing its customers with innovative and convenient banking services.
The court injunction against Equity Bank is a significant development in the ongoing saga between the two companies. The injunction prevents Equity Bank from appointing a receiver to TC, which would have had a significant impact on the company’s operations.