TransCentury aims to buy construction firm Civicon

Thu Nov 10, 2011 1:02pm GMT

Quotes

   

* Seeking shareholder approval to buy into Civicon

* Has net assets of more than $150 million

* Infrastructure development in high gear in the region

By Beatrice Gachenge

NAIROBI, Nov 10 (Reuters) - Kenyan investment company TransCentury plans to acquire construction and heavy haulage firm Civicon Group, which has operations in several African countries.

TransCentury, which has more than $150 million net assets, did not give more detail, saying on Thursday it was in a closed period ahead of its annual general meeting on Dec. 6 at which shareholders will vote on the Civicon deal.

The construction sector has experienced a major boom as African countries embark on aggressive infrastructure development to improve their global competitiveness.

Civicon has operations in Kenya, Rwanda, South Sudan, and Uganda, serving markets in central, eastern and southern Africa where it has built roads, petroleum refineries, and breweries, and laid oil pipelines.

"Civicon falls very neatly into TransCentury's business structure. It is a big plus for them," said Wycliffe Masinde, an analyst at Kestrel Capital.

TransCentury has investments in Kenyan group East African Cables, a transformer manufacturer in Tanzania, Rift Valley Railways and engineering firm Avery East Africa, among others. (Editing by George Obulutsa and Dan Lalor)