The Managing Director of the firm that owns the Serena Hotels in Uganda, Mahmud Jan Mohamed, said on Monday that incorporating the Ugandan firm into the group would go a long way in enabling them to cushion the entity against losses and also increase their shareholders’ value.
“This now gives TPSEA a presence in Uganda and obviously in the long term our objective is to continue with the strategy and hopefully bring in Rwanda and (later) Mozambique to make our public company a very strong vehicle,” he said.
The firm enhanced its presence in Uganda late last year with the acquisition of ‘The Ranch on the Lake’ now Lake Victoria Serena Resort which is the second TPS operation after Kampala Serena.
The integration of TPS Uganda will follow its acquisition through a 100 percent share swap and will go ahead once the requisite regulatory approvals from both Kenya’s and Uganda’s Capital Markets Authorities and the Nairobi Stock Exchange are granted.
A detailed pricing structure and timings of how the process will take place will be released once the group gets the nod from the authorities.
TPSEA started implementing this strategy in 2004 when it integrated the Tanzanian and Zanzibar operations with Kenya’s in a bid to diversify its risk.
This has worked positively for the company particularly in 2008 when the negative impact of the post election violence negatively affected Kenya’s tourism sector, Tanzanian’s operations contributed significantly to the entity’s bottom line.
“The process will bring in more units into the TPSEA and would be a medium term venture that would take about four years to conclude.”