Qalaa Holdings, an African leader in energy and infrastructure, said it was in preliminary negotiations with several prospective global investors for the sale of its stake in Rift Valley Railways (RVR), the national railway of Kenya and Uganda.
Formerly known as Citadel Capital, Qalaa controls subsidiaries in industries including energy, cement, agrifoods, transportation and logistics, and mining.
Qalaa’s indirect ownership in RVR stands at 73.76 per cent and the company has been classified as a discontinued operation on Qalaa’s financial statements since first quarter of 2016, said a statement from the company.
The decision to divest from RVR comes in the wake of management’s conclusion that additional capital is required to complete the company’s transformation program, which has already yielded positive results on RVR’s operational performance, it stated.
Till a concrete sales deal is reached, Qalaa will continue to provide operational and managerial support to RVR, all while pushing ahead with the railway’s three-point turnaround strategy, the statement added.-TradeArabia News Service