sparkly wrote:This is how TransCentury got roasted...
1. Energy - Lots of money to be made in generation, distribution sectors e.g. Geothermal PPP, coal plant, LNG plant, KP network expansion but sorry Kibaki is no longer in power.
2. Infrastructure - They bet huge on constructing structures and civil works for Tullow, Africa Oil etc but then oil prices collapsed and the explorers of the liquid black gold cut back on exploration budgets.
TCL is a good example of Kenyan entrepreneurs who dared to dream big. To survive the current crisis, they need to change strategy urgently.
They need a management with an eye for deals and competence to pull them through.
They need their own Mworia or Dande.
Agreed, they need to change strategy, very quickly. However, I'm not so sure that the current Transcentury Board knows how to do so. The ultimate responsibility for Company strategy lies with them; Transcentury needs to reinvent itself, and doing so requires bold moves, especially now as they face a crisis - but this doesn't seem to be on the Board's agenda.
What is being projected to the public is indecision. How will they repay their massive debt? Being a public Company, keeping shareholders guessing is not a confidence building strategy!
The timing of the road repair play by Avery is another telling factor. Is this how they intend to enter into the road building industry? By promoting pothole repair rather than sound building of roads? I'm sorry, but I cannot share their optimism.
In addition to a turnaround manager at the helm, Transcentury needs a new Board - one with significantly bigger investment credentials than the current Board, one with international experience. It's sad that this home grown investment firm is stumbling so badly.