Qalaa Holdings (CCAP.CA on the Egyptian Exchange), an African leader in energy and infrastructure, has confirmed that preliminary negotiations are ongoing with several prospective local and international investors for the sale of its stake in Rift Valley Railways (RVR), the national railway of Kenya and Uganda. No official agreement or offer has been reached as of yet, and Qalaa will continue to communicate further information in due course as negotiations advance.
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. Until such time a sale agreement 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.
Qalaa’s indirect ownership in RVR stands at 73.76% and the company has been classified as a discontinued operation on Qalaa’s financial statements since 1Q2016.
