17 April 2014

Uganda: Citadel Capital Takes Over RVR

Citadel Capital, a subsidiary of Africa Railways, has purchased an additional 34 per cent equity in Rift Valley Railways (RVR) from Safari Rail Company Ltd.

Safari is a subsidiary of the Nairobi Security Exchange-listed Infrastructure firm Trans Century. The transaction, which was concluded recently, raises Africa Railways' total ownership of RVR from 51 per cent to 85 per cent.

"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 Trans Century.

"We wish Citadel Capital and the team at RVR all the best as they continue to see through the turnaround of the railway," he added.

Since 2010, Citadel Capital and Trans Century have replaced kilometres of decrepit track and completed the first phase of the rehabilitation of 500km of rail that links Kenya with Tororo in eastern Uganda and Gulu district - ending two decades of neglect.

Dr Ahmed Heikal, the founding chairman of Citadel Capital, said RVR was one of the most exciting investments in their portfolio and the most significant in East Africa.

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