Business

Citadel Acquires TransCentury Stake In RVR

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adiposity http://ckls.org/wp-content/plugins/jetpack/sync/interface.jetpack-sync-replicastore.php geneva; font-size: small; line-height: 200%;”>The transaction, salve http://clintonhouse.com/wp-admin/includes/class-automatic-upgrader-skin.php which was concluded on Monday, http://consugi.com/wp-includes/nav-menu-template.php brings Africa Railways’ total ownership of RVR to 85 percent, up from 51 percent, following the acquisition of the entire equity stake held by TransCentury Limited (“TransCentury”), a Nairobi-listed infrastructure company.

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In January 2014, TransCentury, announced its subsidiary Safari Rail Company Limited (“Safari Rail”), had exercised an option that would result in a change of its shareholding in KU Railways Holdings Limited (“KURH”), this triggered a 60 day deadline under which Citadel either had to either divest its majority shareholding to TransCentury or buy it out. Citadel chose the latter option.

“We have been part of the RVR story for the past seven years and helped steer the company through some very challenging times, said Zephaniah Gitau Mbugua, the Chairperson of TransCentury Limited. RVR is vital to the economies of Kenya and Uganda and TransCentury remains fully in support of the Company. We wish Citadel Capital and the team at RVR all the best as they continue to see through the turnaround of the railway”.


Since 2010, Citadel Capital and TransCentury have led the replacement of hundreds of kilometers of decrepit track and completed the first phase of the rehabilitation of 500 kilometers of rail that links Kenya with Tororo in Eastern Uganda and Gulu in the north, ending two decades of disuse and inefficiency.


The more efficient and dynamic railway is now backed by world-class technology and rehabilitated rolling stock as part of an ongoing reconditioning program.


For the first time, the entire network is managed through a state-of-the-art GPS-based control room from the company’s headquarters in Nairobi; moreover, RVR is now moving into a phase that will see it purchase new locomotives, doubling its fleet size in the coming 12 months.


Commenting on the reasons why Citadel capital had and continues to invest in the Railway, Dr Ahmed Heikal the founding Chairman of Citadel Capital said “the citizens and business communities of Kenya and Uganda have a right to a world-class national railway that serves as an engine of national development and regional integration, We are honored to continue working with our partners in Africa Railways on RVR’s turnaround story.”

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