US war contractor cements Kenyan presence with second acquisition
What you need to know:
Phoenix Aviation acquisition aims at offer logistics, aviation and risk management services to multinationals operating in Eastern Africa’s natural resources sector.
A US defence contractor has acquired a second local aviation company to provide logistics services to Kenya’s nascent oil and gas industry, with an eye on the rest of the continent.
Erik Prince has bought a 49 per cent stake in Nairobi-based Phoenix Aviation in a deal valued at Sh1.2 billion to offer logistics, aviation and risk management services to multinationals operating in Eastern Africa’s natural resources sector.
Mr Prince is the founder of Blackwater – the world’s largest private military firm that at one time came under fierce criticism over its operations in Iraq.
Frontier Services, which the former US navy SEAL sold to Hong Kong bourse –listed DVN Holdings for a 15.3 per cent shareholding and board chairmanship, agreed to buy the stake in Phoenix at Sh1.2 billion.
“We are delighted to expand our presence within the Kenyan aviation and business communities. With Phoenix, a solid foundation is now laid for our ongoing expansion as a logistics, transportation and risk management services provider with continent-wide reach,” said Gregg Smith, the chief executive officer of Frontier Services in a statement.
The Phoenix acquisition comes after DVN Holdings acquired Kilifi-based Kijipwa Aviation last year in a transaction valued at Sh1.9 billion which allows the company to offer non-scheduled passenger and freight air services in Kenya and eastern Africa.
Interest in Kenya’s upstream oil sector where there has been aggressive drilling of exploratory wells since Tullow Oil first struck crude deposits in Turkana in March 2012 has also attracted another American private security firm, Academi LLC which is also associated with Mr Prince.
Academi LLC is hunting for a possible joint venture deal with a local company KK Security and is also eyeing contracts to train Kenya government security forces and private guards to counter insecurity and terrorism threats.
The Wilson Airport headquartered Phoenix has been in operation since 1994 and provides services including worldwide air ambulance, regional cargo and passenger movements, repair and maintenance of its own and third-party aircraft throughout East Africa, search-and-rescue operations, and transport of government and prominent private sector individuals.
