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Qalaa Confirms Intentions To Sell Interests In RVR

Qalaa Holdings has confirmed that preliminary negotiations are on-going with several prospective local and international investors for the sale of its stake in Rift Valley Railways (RVR). The company has indicated in a recent press statement that no official agreement or offer has been reached as yet, and the company will keep relevant stakeholders informed as negotiations advance over the coming months.

Qalaa qualified their resolution to withdraw from the East African rail operation by stating that: “The decision to divest from RVR comes in the wake of management’s conclusion that additional capital is required to complete RVR’s transformation programme, which has already yielded positive results according to recent operational performance reports.” Currently, Qalaa's indirect ownership in RVR stands at 73.76%. However, the railway company has been classified as a discontinued operation on Qalaa’s financial statements since the first quarter of 2016.

Qalaa has reassured stakeholders in RVR that it plans to continue its involvement in the operator’s rehabilitation programme until the transfer of ownership is accomplished. “Qalaa will continue to provide operational and managerial support to RVR while pushing ahead with the railway’s three-point turnaround strategy until such a time as a sale is finalised” the company states in a recent press statement.

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