TransCentury, a Kenyan headquartered company with a primary focus on investing in infrastructure across Africa, stands to earn 70 million Kenyan Shillings ($812, 280), as East African Cables announces an interim dividend of 40 cents ($ 0.004) per share.
As majority shareholder of the cable producing company, investment group TransCentury will receive a payment of almost 70 million Shillings ($812,280) as a dividend on its 173 million shares – a stockholding which sees TransCentury own 68.3 percent of the cable company.
East African Cables announced the pay out of the dividend in a meeting held by the board on Friday.
The cable company has seen difficult times over recent years, but has experienced a complete turn around this year, with half year profits released in July showing huge growth – with profit after tax for the half year weighing in at 274 million Shillings ($3.2 million) for 2012, up from 172 million Shillings ($2 million) in the equivalent period of 2011.
Meanwhile, TransCentury has seen its investments going from strength to strength. Aside from the current dividend pay out by East African Cables, the company will see a further inflow of funds pursuant to the sale of its stockholding in Tanzanian tea company Chai Bora.
The company has also decided to increase its infrastructure based investments, recently purchasing a controlling stake in engineering and logistic company Civicon Ltd. Civicon has been involved in a number of infrastructure improvements across Kenya, Rwanda, South Sudan and Uganda including the construction of roads, oil pipelines, and petroleum refineries.
TransCentury also boasts a stake in the Rift Valley Railways, and it is expected that the company’s next upgrade projects will relate to the Railway infrastructure in the region in a bid to increase rail traffic, according to Business Daily.