Cameroonian telecommunications firm Saconets plans a debt-to-equity conversion reserved for Cenainvest, an Afriland-linked firm.
Satellite Communications and Network Services (Saconets) is proposing a CFA681.2 million capital increase through a debt-to-equity conversion. The move is reserved exclusively for Cenainvest, an investment firm with historical ties to Afriland First Bank. Shareholders will vote on the proposal, which includes removing existing shareholders' preferential subscription rights, on November 9, 2026, in Yaoundé. The transaction aims to reduce Saconets' liabilities and strengthen its equity without injecting new cash.
If approved, Cenainvest will receive newly issued Saconets shares in exchange for canceling a debt owed to it by the telecommunications company. This differs from a traditional capital increase where new funds are contributed. Other shareholders will not have the right to subscribe to this reserved share issue. The meeting notice was signed by board chair Ghislaine Kammogne Simo.
The proposed capital increase would convert an existing debt claim into an ownership stake, thereby strengthening Saconets' balance sheet. This financial maneuver is designed to improve the company's equity position by reducing its liabilities. The outcome hinges on shareholder approval during the upcoming meeting.
Why it mattersShareholders of Saconets will vote on a proposal that could dilute their ownership stake by converting a debt owed by the company to Cenainvest into equity.
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