(Ecofin Agency) - A few days after selling part of the shares of its subsidiary Centum Real Estate, the investment group Centum is mulling over a similar deal for its land development unit. The deal is expected to close in Q2 2022.
Investment group Centum has begun talks with investors to sell part of the shares it holds in Two Rivers Development Limited (TRDL). Businessdaily.com reported that Centum MD James Mworia (pictured), plans to sell an ‘as yet undetermined’ part of the subsidiary’s capital. The transaction is set to take place in Q2 2022.
“We are engaging with several investors and will hopefully close soon. The target holding post-deal depends on the valuation we agree on and structure, which might either come in as straight equity or a convertible facility. In the next three or four months, we should have a signed agreement,” the Manager said. A few days ago, Centum sold part of its branch Centum Real Estate. The transaction, carried out on January 12, enabled the East African group to raise about $150 million.
With the new sale, Centum will raise extra funds to reduce the debt of its subsidiary Two Rivers Development Limited. The company will gradually exit a loss-making business. Last November, the subsidiary reported a loss of KSh342 million for H1 2021. In H1 2020, it was KSh1 billion.