RVR majority owner plans to sell non-core ventures

The Rift Valley Railways (RVR) majority shareholder, Qalaa Holdings, plans to sell its non-core businesses and use the funds to invest in other ventures.

The Egyptian firm said it will sell its 70 per cent stake in Tanmayeh, a microfinance institution, and invest the funds in the infrastructure and industry sectors. Tanmayeh is the largest private microfinance provider in Egypt. 

“Qalaa Holdings is on track in divesting non-core holdings. Our ongoing divesture of those businesses will allow us to de-risk, deleverage and to invest in growth opportunities for our core subsidiaries,” said Qalaa chairman and founder Ahmed Heikal in a statement.

“The exit from Tanmeyah, if concluded, would provide us with liquidity that exceeds the needs of both our current de-leveraging programme and our financing needs. It will also permit share buyback by Qalaa Holdings on an opportunistic basis.” 

Qalaa Holdings recently announced it would raise $222.4 million (Sh20.2 billion) through a rights issue to finance its planned acquisition of additional shareholding in its subsidiaries.

The company raised its stake in RVR to 85 per cent last year after buying out TransCentury’s 34 per cent equity in the railway concessionaire for Sh3.8 billion. The remaining 15 per cent rail stake is held by Uganda’s Bomi Holdings.