Egyptian investment company Qalaa Holdings has confirmed that it is talking to several local and international investors as it seeks to sell its stake in the Kenya-Uganda railway Rift Valley Railways (RVR). According to the press, a consortium has made a USD 133 million bid to buy an 80% stake in the RVR from Qalaa Holdings.
The consortium includes Armstrong & Duncan, petroleum distributor Rubix Energy, logistics firm Shreeji Enterprises, and South Africa state-owned railway firm Transnet Engineering.
The consortium counts on a multi-pronged strategy to turn around loss-making RVR, including funnelling existing customers to use the railway operator’s services as well as expectation that some of the crude oil coming from the region’s wells will come through.
Qalaa Holdings holds an indirect stake of 73.76% in RVR. Its total direct and indirect interest in RVR, including stakes held by several of its partners such as Dutch fund FMO, stands at 85%.
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