TANGA, Tanzania – 30 September 2025 – Tanga Cement Plc (Simba Cement) has launched the country’s largest-ever rights issue, seeking to raise TZS 204 billion to settle foreign-denominated debt, strengthen its balance sheet, and pave the way for future expansion.
The one-month offer, officially unveiled in Dar es Salaam, surpasses CRDB Bank’s landmark TZS 152 billion rights issue held a decade ago.
Shareholder Offer at a Discount
Under the approved prospectus, 127,342,090 rights shares will be offered to existing shareholders at TZS 1,600 per share, on a ratio of two new shares for every one existing share. The offer represents a 38.2% discount compared to the prevailing market price of TZS 2,590.
“This issuance of rights shares by Tanga Cement is a solid step toward expanding investment opportunities and enhancing shareholder value,” said Mr. Nicodemus Mkama, Chief Executive Officer of the Capital Markets and Securities Authority (CMSA).
Management and Market Reactions
Tanga Cement Managing Director, Alfonso Velez, described the rights issue as a vote of confidence in both the company and Tanzania’s economic direction:
“We are positive about the market development process and see growth opportunities across the cement value chain.”
On his part, iTrust Finance CEO, Mr. Faiz Arab, emphasized that the initiative goes beyond fundraising:
“The rights issue is not merely a fundraising exercise but a dedicated step to optimise Tanga Cement’s capital structure, unlock growth, and maximise long-term shareholder value. For shareholders, this represents a preferential opportunity to reinvest in a proven growth story at a crucial turning point.”
Market Context
Solomon Stockbrokers noted that following Scancem International D.A.’s acquisition of majority shares in Tanga Cement from AfriSam Cement in November 2023 at TZS 2,441.42 per share, no date has yet been set for acquiring the remaining minority shares.
Tanga Cement made history in 2002 as the first cement company to list on the Dar es Salaam Stock Exchange (DSE), trading under the ticker TCCL.
Looking Ahead
With the CMSA’s approval and strong institutional backing, the rights issue is expected to significantly reduce the company’s foreign-denominated debt burden, strengthen profitability, and enhance its ability to fund future expansion projects in Tanzania’s growing cement industry.
Source: Daily News
No comments:
Post a Comment