22 January 2013

Tanzania: Group Pulls Out From Tea Manufacturing Firm

Nairobi — Regional capital investing group TransCentury Limited has pulled out of Tanzania's leading packaged tea manufacturer Chai Bora Limited.

TransCentury last week made the announcement that it had sold its entire stake in the Tanzanian company to Catalyst Principal Partners.

Last year, TransCentury announced its plans to concentrate on projects in engineering and general infrastructure. The divesture from other engagements in non-infrastructure projects was therefore expected.

According to sources close to the multi-billion company, the next couple of months will see other similar announcements as the company moves to assert its position as the region's infrastructure investment giant. It has interests in Rift Valley Railways (RVR), the company currently managing the Kenya Uganda railway.

TransCentury CEO Gachao Kiuna said proceeds from the sale of the tea venture in Tanzania and others in the pipeline will be redirected to projects in energy, transport and rail.

"The sale of this stake is in line with our strategic focus as a company. We are keen on cementing out investments in key infrastructure engagements in the region. This is what our stakeholders should expect going forward," said Kiuna.

He said the company will continue with its expansion trajectory in East, Central and Southern Africa where growth potential is evident.

TransCentury Limited is currently one of the biggest Kenyan companies that have made remarkable forays in the East African region apart from a very successful business run in local market.

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