City Lodge hotel revealed that it received the green light from the Competition Authority of Kenya (CAK) in January.
It said the approvals were delayed and have forced it to push the date of completing the salt to April this year.
Fairview Hotel has 127 rooms; City Lodge Hotel at Two Rivers has 171 rooms and Town Lodge Upper Hill 84 rooms.
South African owners of Nairobi’s Fairview Hotel, Town Lodge and City Lodge Two Rivers have finally received regulatory approvals to sell the three hotels to Actis for Sh1 billion.
City Lodge hotel revealed that it received the green light from the Competition Authority of Kenya (CAK) in January.
It said the approvals were delayed and have forced it to push the date of completing the salt to April this year.
City Lodge Hotel Group announced mid last year it had put up the three Kenyan hotels and Tanzania’s City Lodge Hotel in Dar es Salaam for sale in plans to exit East Africa after barely seven years of operation. It plans to sell the Tanzania hotel for Sh7.3 million
“Due to the delays in the competition commission approvals, the long-stop dates have been extended to May 31. However, the remaining conditions precedent are in the process of execution, and it is anticipated that the sale will complete by the end of April 2022,” the firm said in the unaudited interim report for the six months ended 31 December 2021.
The East Africa units were loss-making to the tune of Sh2 billion as at the end of 2020.
The hotel received approvals from the regional anti-trust body Comesa Competition Authority in December which noted they had received information from CAK that the acquisition did not pose competition risks.
Fairview Hotel has 127 rooms; City Lodge Hotel at Two Rivers has 171 rooms and Town Lodge Upper Hill 84 rooms.
The deal involves a joint bid between Actis and a private company registered in the British Virgin Islands called Jamison Valley Holdings.
Filings at the Comesa Competition Authority show the hotels will be bought by Actis and Jamison Valley Holdings indirectly through Ukarimu real estate funds.
