RVR railways hit by ownership wrangles
Jan 18, 2010
FRESH wrangles over the ownership of the Rift Valley Railways (RVR) have emerged. The development could thwart efforts by the troubled company to beat the January 25 deadline to have a new ownership agreement to save their concession.
By Emojong Osere
FRESH wrangles over the ownership of the Rift Valley Railways (RVR) have emerged. The development could thwart efforts by the troubled company to beat the January 25 deadline to have a new ownership agreement to save their concession.
The Ugandan and Kenyan governments gave RVR a 14-day ultimatum to solve stakeholders wrangles.
But a stakeholders meeting convened to negotiate the new agreement last week ended prematurely, putting the firm’s concession at risk of termination. The two governments gave the ultimatum last week following reports that part of the firm had been sold to the Egyptian government.
The alleged take-over by Egypt has soured stakeholder relations, hampering the new agreement’s negotiations. The deal is expected to change the firm’s name from RVR to Kenya-Uganda Railway Holdings, which is registered in Mauritius.
According to Kenya’s Saturday Nation, some RVR stakeholders were opposed to the take-over by Citadel Capital, a Cairo-based private equity firm presently embroiled in a battle with the Transcentury Group, to take-over the 900-kilometre Mombasa-Kampala railway.
The Egyptians, who according to the newspaper have bought 49% shares from the majority shareholder in RVR, Shelta Rail Company of South Africa, have insisted on being represented on the RVR board as Shelta nominees.â€
But when contacted, RVR general manager Christina Wadulo, declined to comment on the scheduled meeting and the RVR stakeholder in-fighting.
Ali Mwakwere, Kenya’s transport minister had earlier warned shareholders to use the 14-day ultimatum to put their house in order as the Joint Railway Commission asked them to on January 11.
FRESH wrangles over the ownership of the Rift Valley Railways (RVR) have emerged. The development could thwart efforts by the troubled company to beat the January 25 deadline to have a new ownership agreement to save their concession.
The Ugandan and Kenyan governments gave RVR a 14-day ultimatum to solve stakeholders wrangles.
But a stakeholders meeting convened to negotiate the new agreement last week ended prematurely, putting the firm’s concession at risk of termination. The two governments gave the ultimatum last week following reports that part of the firm had been sold to the Egyptian government.
The alleged take-over by Egypt has soured stakeholder relations, hampering the new agreement’s negotiations. The deal is expected to change the firm’s name from RVR to Kenya-Uganda Railway Holdings, which is registered in Mauritius.
According to Kenya’s Saturday Nation, some RVR stakeholders were opposed to the take-over by Citadel Capital, a Cairo-based private equity firm presently embroiled in a battle with the Transcentury Group, to take-over the 900-kilometre Mombasa-Kampala railway.
The Egyptians, who according to the newspaper have bought 49% shares from the majority shareholder in RVR, Shelta Rail Company of South Africa, have insisted on being represented on the RVR board as Shelta nominees.â€
But when contacted, RVR general manager Christina Wadulo, declined to comment on the scheduled meeting and the RVR stakeholder in-fighting.
Ali Mwakwere, Kenya’s transport minister had earlier warned shareholders to use the 14-day ultimatum to put their house in order as the Joint Railway Commission asked them to on January 11.