Qalaa puts Rift Valley Railways stake for sale
Jan 9, 2017: Qalaa Holdings is in preliminary talks with several prospective global investors for selling its stake in Rift Valley Railways (RVR), the national railway of Kenya and Uganda.
Earlier known as Citadel Capital, Qalaa controls subsidiaries in industries including energy, cement, agrifoods, transportation and logistics and mining.
Qalaa indirectly holds 73.76 per cent in RVR. According to a statement released by the company, RVR has been classified as a discontinued operation on Qalaa’s financial statements since the first quarter of 2016.
Divesting from RVR is a strategic decision taken by the company as additional capital is required to complete the company’s transformation program, which has already yielded positive results on RVR’s operational performance, it stated.
Qalaa will continue to offer operational and managerial support to RVR until a concrete deal is sealed while pushing ahead with the railway’s three-point turnaround strategy, the statement added.