Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Colony has also agreed to oversee, on an interim basis, other group funds that are not being acquired so that the Group and all its stakeholders have a comprehensive global solution in place/FILE

Kenya

Java Coffee House to be sold to US Firm Colony Capital

Colony has also agreed to oversee, on an interim basis, other group funds that are not being acquired so that the Group and all its stakeholders have a comprehensive global solution in place/FILE

NAIROBI, Kenya, Jun 22 – The owners of coffee chain Java House are set to sell it to US investment management firm Colony Capital.

Dubai-based private equity firm Abraaj Group said they have reached agreement on the principal terms for the sale and purchase of the Group’s Latin America, Sub Saharan Africa, North Africa and Turkey Funds management business and the Group’s Limited Partnership interests in the underlying Funds, along with staff in the eight offices being transferred under the terms of the deal.

Colony has also agreed to oversee, on an interim basis, other group funds that are not being acquired so that the Group and all its stakeholders have a comprehensive global solution in place.

The transaction is expected to complete by July 1, 2018.

Some of Abraaj key interest in Kenya include 100 percent stake in coffee chain Java House which is valued at more than Sh10.3 billion, 18 clinics and 10 hospitals which include major stakes in; Nairobi Womens Hospital, Avenue Group Hospital (56.2 percent), Metropolitan Hospital and Ladnan Hospital.

The group also has a 10 percent stake in Brookside Dairy as well as 21 percent stake in Seven Sea Technology (SST).

Abraaj’s problems began this year when the Bill & Melinda Gates Foundation and other investors hired a forensic accountant to look into possible misuse of money they had put into a $1 billion Abraaj health-care fund.

The firm recently began a restructuring plan that saw Grand Court of the Cayman Islands appoints representatives of PricewaterhouseCoopers and Deloitte as Joint Provisional Liquidators to ensure that the rights of all stakeholders are protected while the Company is restructuring.

“We are delighted to have crafted this comprehensive global solution for Abraaj and its stakeholders and sincerely hope that this can enable the process of rebuilding on all sides and also bring an end to the speculation that has swirled around Abraaj over the last months,” said Tom Barrack, Executive Chairman, Colony Capital.

Abraaj was founded in 2002 by Arif Naqvi and emerged to become a leading private equity investor in growth markets with a regional footprint spanning Latin America to South East Asia.

Advertisement. Scroll to continue reading.

The Group has investments which include a portfolio of mature businesses covering diverse sectors including financial services, FMCG, industrials, healthcare, education, manufacturing and logistics.

Colony is a leading global investment management firm with significant holdings in the healthcare, industrial and hospitality sectors, in addition to other private equity and debt investments, with an embedded institutional and retail investment management business. It was founded by Thomas J. Barrack, Jr. in 1991.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...