TransCentury reviewing its stake in RVR

RVR workshop in Nairobi. TransCentury is the second largest shareholder in RVR with a 34 per cent stake. FILE 

By John Gachiri

In Summary

• TransCentury has entered negotiations that could change its shareholding in Rift Valley Railways (RVR) over the next two months.

NSE-listed infrastructure company TransCentury has entered negotiations that could change its shareholding in Rift Valley Railways (RVR) over the next two months, the firm announced in a statement on Thursday.

The brief statement did not however state whether it would raise or cut its shareholding in RVR, which has a concessionaire contract for running the Kenya Uganda railway.

“TransCentury has exercised an option that will result in a change of its shareholding in Rift Valley Railways.  The transaction is in line with the Group’s overall strategy to maximise the value of its investments for its shareholders,” said the company in a statement, adding that it expected the deal to be done by March 31.

The announcement leaves investors guessing what TransCentury plans to do with its stake in RVR, which has repeatedly come under criticism from the government for perceived under-performance.

TransCentury is the second largest shareholder in RVR with a 34 per cent stake.

RVR, which has a 25-year concession to run the Kenya-Uganda railway line, is majority owned by private equity firm Citadel, which has a 51 per cent stake and Uganda’s Bomi Holdings that has a 15 per cent stake.

TransCentury’s shareholding in RVR is owned by Safari Rail Company Limited which is incorporated in Mauritius.

TransCentury chief executive Gachao Kiuna declined to give an indication on whether the firm would be buying more or reducing its stake