Businessman Peter Muthoka made a cool Sh5.2 billion from the sale of his business to a German firm. In this multi-billion deal, Mr. Muthoka sold his cargo business TransGlobal Centre Limited to Çelebi GMBH. TransGlobal is based at the Jomo Kenyatta International Airport.
Muthoka’s JKIA business has been operating at the under the brand name Africa Flight Services (AFS). AFS is no small fish in the cargo business.
According to data from the Kenya Airports Authority, AFS (Africa Cargo Handling) handles 33 percent of exports ahead of Kenya Airways Cargo which handles 22 percent of exports. However, when it comes to imports, AFS handles 20 percent with Kenya Airways handling 32 percent.
So why would Mr. Muthoka cash in his money-minting JKIA business? The businessman told a local newspaper that he was convinced that it was time for him to venture into other areas of investment.
“I have done my best in this business. We have the best service and best equipment, [but now] I want to invest in other things,” he said.
Mr. Muthoka further noted that part of the money he got from the sale of this business has been used to repay a debt that the business had taken to upgrade its facilities.
He also noted that while he has sold off 100 percent of TransGlobal, he will still maintain some presence in the logistics business through Acceler Global Logistics, which is one of the businesses that he owns. Acceler deals in freight services.
This deal has already been confirmed and approved by the Competition Authority of Kenya (CAK), and acknowledged by Çelebi.
The deal will now see Çelebi GMBH make its entry into the Kenya market. According to a statement by the company, Çelebi has acquired Muthoka’s business at $40.1 million (approximately Sh5.172 billion at an exchange rate of 129 to the US dollar).
“Çelebi Aviation has closed on the acquisition of 100 percent of Transglobal Cargo Centre Ltd. (AFS) for $40.1 million, marking the company’s entry into Kenya’s rapidly expanding aviation services sector. The acquisition is in line with Çelebi’s international growth strategy and is expected to increase synergies among group companies,’ the company stated.
According to Celebi Aviation chief executive officer Dave Dorner, the acquisition is strategically based on the expected growth of the local aviation market.
“Kenya is a key gateway for trade and cargo flows across East and Central Africa. We are going to combine AFS’s strong local expertise with Çelebi’s global experience, modern systems and operational standards to support Kenya’s ambitions as a regional trade and logistics hub,” he said.
Çelebi noted that the aviation market in Kenya is forecast to grow at an average rate of 5 percent per year over the next five years, significantly outpacing the International Air Transport Association’s projected global average of 3.3 percent.
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