East African Cables Plc has announced the planned sale of a 51% stake in its Tanzanian subsidiary, EAC (Tanzania) Limited, to Msufini (T) Limited.
East African Cables said the strategic move would benefit its shareholders and the investing public who have entered into a share purchase agreement with Msufini (T) Limited on March 6, 2024, for the sale of 16.2 million ordinary shares with a par value of 10 Tanzania Shillings (USD 70,000), constituting 51 per cent of the issued share capital of EAC (Tanzania) Limited to Msufini.
The company has four manufacturing facilities: two in Nairobi, Kenya, one in Dar es Salaam, Tanzania; and one in the Eastern DRC. In addition, EAC is present in Uganda, Rwanda, Burundi, Southern Sudan, and Ethiopia through a distribution network.
EAC manufactures an extensive range of cables for domestic and industrial lighting applications and electricity transmission and distribution. The company also offers Data, Telecommunication and Fiber Optic solutions with requisite accessories.
The transaction is subject to customary closing conditions, including shareholder and regulatory approvals. Upon completion, EAC (Tanzania) Limited will cease to be a subsidiary of East African Cables Plc.
