Kenya’s power producer KenGen will sell a 5.3 per cent stake to the South African Government Employees Pension Fund for $23 million.

KenGen says it has entered into an agreement with the Public Investment Corporation SOC Ltd, the Fund’s manager, in which the South African pension scheme will acquire “351,210,589 ordinary shares in KenGen at a price of Ksh6.55 ($0.6) per share.”

The shares are part of those not taken up during KenGen’s cash call last year.

In a public announcement Thursday, KenGen said the transaction, which is still subject to regulatory approvals, could have material effect on its shares trading on the Nairobi Securities Exchange (NSE).

“Accordingly, shareholders and the public in general are advised to exercise caution when dealing in the shares of KenGen,” the managing director Albert Mugo said.

Last year, KenGen offered 4.4 billion additional shares in a rights issue at a price of Ksh6.55 ($0.6) per share. However, only 4.05 billion shares were taken up by shareholders, raising Ksh26.5 billion ($265 million).

The cash call was aimed at raising money for new power projects and reducing its debt.

READ: KenGen chooses rights issue over privatisation to mobilise capital