DANGOTE-BACKED FUND BUYS KENYAN TOUR FIRM FOR SH4 BILLION ($31 MILLION)

DANGOTE-BACKED FUND BUYS KENYAN TOUR FIRM FOR SH4 BILLION ($31 MILLION)

Nigerian Tycoon Aliko Dangote Pumps More Billions into Kenya’s Tourism Industry with New Acquisition – Africa’s richest man, Aliko Dangote, has deepened his investment footprint in Kenya with his private equity fund acquiring one of the country’s oldest tour operators for an estimated Sh4 Billion ($31 million). Source Kenya Insight

Africa Travel Investments, a tourism investment firm backed by Aliko Dangote, Africa’s richest man, has acquired Pollman’s Tours and Safaris, Kenya’s oldest tour company.

In a recent statement, the Competition Authority of Kenya (CAK) granted Africa Travel unconditional approval to purchase 100 percent of Pollman’s issued share capital.

“With regard to the proposed transaction, post-merger, the market share of the merged entity will not change as the target and the acquirer is not in similar business and therefore the structure and concentration of the markets for tour operators in Kenya will not be affected,” CAK said.

The authority said the structure and concentration of Kenya’s fragmented tour operator market would remain unaffected.

The CAK said it also determined that the deal does not pose a risk to jobs or the competitiveness of small businesses, which are key public interest considerations under Kenyan merger law.

According to the authority, the parties confirmed that no job losses would result from the acquisition.

Africa Travel said the acquisition is “a growth-focused investment”.

In January, Alterra Capital, a private equity fund backed by Dangote and Dave Rubenstein, acquired a majority shareholding in the Java Coffee chain, which operates 73 branches in Kenya, Uganda, and Rwanda.

In February, Alterra Capital also invested in ARP Africa Travel Group, which operates Pollman’s.

Source: Kenya Insight