Secret society registered in the British Virgin Islands to purchase City Lodge Two Rivers –
A secret company registered in the British Virgin Islands has been involved in the Ksh 1 billion deal to buy the Fairview Hotel, Town Lodge and City Lodge Two Rivers in Nairobi.
The revelations indicate that Jamison Valley Holdings will buy the hotels in conjunction with investment firm Actis.
The two formed a Mauritius-listed Special Purpose Vehicle (SPV) called Msafiri Limited. Msafiri has a company called Ukarimu Real Estate, which will buy the hotels.
“Jamison does not intend to disclose any additional information, including details of its structure to any third parties other than those contained in the Commission’s dated Notice of Merger Inquiry No. 26 of 2021. September 16, 2021 ”, said Sandya Booluck, Senior Analyst, Mergers and Acquisitions, at Comesa’s Competition Commission, quoted by Daily business.
Read: City Lodge Two Rivers to be sold as owner leaves Kenyan market
The hotels are currently owned by City Lodge Group, which is considering exiting the East African market after selling the hotels.
“The parties have argued that Ukarimu was incorporated by Msafiri Limited (“ Msafiri ”), an ad hoc structure incorporated under Mauritian law, by Actis Hospitality Mauritius Limited. Jamison will acquire shares in Msafiri prior to the transaction, ”Ms. Booluck said.
In December 2020, the group announced that it would also sell its City Lodge hotel in Dar es Salaam, claiming to have already received an offer from a willing buyer.
“Shareholders are informed that following receipt of an unsolicited and non-binding offer for the proposed acquisition of City Lodge’s activities in East Africa, including its hotels located in Kenya and Tanzania, the company has entered into negotiations which, if concluded successfully, could have a significant effect on the price of the Company’s securities, ”City Lodge Hotel Group said on the Johannesburg Stock Exchange.
It was later revealed that the Tanzanian City Lodge hotel in Dar es Salaam would be sold to Faraja Limited, also owned by Actis for Ksh 7.3million.
City Lodge acquired its first hotel in Kenya in 2012, the Fairview Hotel, before opening another outlet in Two Rivers in 2018.
The Fairview Hotel has 127 rooms, the City Lodge Hotel at Two Rivers has 171, and the Town Lodge Upper Hill 84.
Hotels performed below expectations, with a cumulative loss of over Ksh3.64 billion for the Group in 2020.
Send your new TIPS by email to [email protected] or WhatsApp +254708677607. You can also find us on Telegram via www.t.me/kahawatungu