The move, according to TransCentury CEO Gachao Kiuna is in line with the group’s overall strategy to focus on investments in infrastructure and engineering.
“Our strategic focus is infrastructure and related sectors. Proceeds from the sale will be redeployed into TransCentury’s core divisions, namely power infrastructure, transport infrastructure and engineering,” he explained.
“We are poised to take advantage of the market opportunity in the infrastructure sector across the region and we will continue expanding across East, Central and Southern Africa,” he added.
The acquisition of Chai Bora represents Catalyst’s second investment in Tanzania and is consistent with its focus on consumer goods, financial services, technology and industrials.
With Sh10.8 billion of funds under management, Catalyst is actively investing across Eastern Africa and building a portfolio of dynamic businesses and leading brands with a value-add approach to accelerate the growth of national companies into regional champions of scale.
“Chai Bora is a recognized Superbrand in Tanzania where it has established a market share as the leading tea company in the country,” said Catalyst Managing Director, Rajal Upadhyaya.
“Our aim is to support the continued growth and expansion of the business within Tanzania and across the region, so that consumers can continue to benefit from an increasingly wide variety of affordable high quality Chai Bora products and brands,” he said.
“We remain upbeat about the prospects for Eastern Africa. This investment represents a ramping up of Catalyst’s investment activities across the region,” he emphasised.
Located in Mafinga, Iringa, Chai Bora blends, packs and makes various blends of tea for sale and also owns the African Infusions brand, a herbal tea product.
Chai Bora Limited was started in 1994 as a subsidiary of TATEPA and was fully incorporated in 2006 as an independent firm.