Aliko Dangote-Backed Firm Acquires Kenya’s Oldest Tour Operator, Betting On Tourism Growth
The deal underscores significant private equity confidence in the future of Kenya’s tourism sector, a key contributor to the national economy.
Alex.Haynes
Africa Travel Investments, a tourism-focused firm with financial backing from Nigerian industrialist Aliko Dangote, has acquired Pollman’s Tours and Safaris, Kenya’s oldest tour operator. The deal underscores significant private equity confidence in the future of Kenya’s tourism sector, a key contributor to the national economy.
The Competition Authority of Kenya (CAK) had previously approved Africa Travel Investments’ acquisition of 100% of Pollman’s issued share capital.
According to a CAK statement, “With regard to the proposed transaction, post-merger, the market share of the merged entity will not change as the target and the acquirer is not in similar business and therefore the structure and concentration of the markets for tour operators in Kenya will not be affected.”
This acquisition follows a February investment by Alterra Capital, a private equity fund supported by both Dangote, Africa’s wealthiest individual and chairman of Dangote Cement, and American billionaire Dave Rubenstein, into ARP Africa Travel Group, the parent company of Pollman’s. According to the CAK, the merger will not impact the competitive landscape of Kenya’s tour operator market, which include Bonfire Adventures and Bountiful Safaris.
The regulatory body also determined that the acquisition would not negatively affect jobs or the competitiveness of smaller businesses within the industry.
The CAK stated, “The authority also concluded the deal poses no threat to jobs or small business competitiveness, two of the key public interest concerns under Kenyan merger law. The parties indicated no employment losses would result from the acquisition.”
According to Forbes, the Nigerian mogul is worth $23.2 billion. Dangote’s extensive business empire includes Dangote Cement, the continent’s largest cement producer with operations spanning 10 African nations. His investments also extend to fertilizer production in Nigeria and the recently operational Dangote Refinery.
The acquisition of Pollman’s by a Dangote-backed entity signals a diversification into Kenya’s promising tourism market.
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