Electrical and communications wires manufacturer East African Cables has inked sh 41 million deal to supply electrical cables to Kenya power.
The utility firm sources its cables from local and overseas markets including India and China.
The deal comes as a boost for the struggling cable maker which is battling to reverse a persistent plunge in revenue that stood at Sh2.3 billion in the year ended December 2017, nearly half their peak of Sh5.1 billion in 2014.
The Nairobi Securities Exchange-listed firm has been in the red since 2015 when it posted an Sh741.2 million net loss, reducing to Sh582.6 million a year later but widening to Sh662.8 million in 2017.
The firm is set to release the full-year performance for 2018 after being granted approvals to delay the results by the Capital Markets Authority (CMA).
Early this year, East African Cables entered into a conditional transaction that results in a material change in the company and the parent company (TranCentuary Group) capital structure and debt profile.
In cautionary advice to its shareholders and those of TranCentuary PLC, East African Cables Board said the transaction is subject of receipt of various approvals and conclusion of ongoing discussions with stakeholders.“This transaction when concluded will have a material effect on the equity value of the business. Shareholders and the public are therefore advised to exercise caution when dealing in the shares of EAC and TC,”
