Madhvani edges closer to Umubano Hotel takeover

Madhvani Group could take over Umubano Hotel in the next few weeks if the privatisation deal that officials say has reached an advanced stage is sealed. Madhvani Group is a Ugandan-based conglomerate with interests in sugar processing, ethanol production, oil and soap, floriculture, leisure and hospitality sectors, among others. The group owns the country’s only sugar processing company, Kabuye Sugar Works. The firm first expressed interest in Umubano Hotel in September last year. Umubano Hotel is currently in liquidation under its holding company, SOPROTEL, which had been handling the sale of the facility since 2014. Top directors from the Ugandan-based firm were in the country last week during which they held closed-door meetings with the management of Rwanda Development Board and the liquidator of the firm on Tuesday and Friday. On Friday, the parties signed a sales agreement, which stipulates 30 days for due diligence before the closure of the deal, The New Times understands. Emmanuel Butare, the liquidator of the property, confirmed to The New Times that they had signed an agreement with the buyer and were looking to close the deal within a month. “There is a sale agreement but subject to due diligence within the course of one month prior to the closure. It is not conclusive as it is subject to closure. We are at an advanced stage of negotiations with the buyer, and we are likely to have concluded (the process) in 30 days,” he said. The liquidator put out calls for expression of interest to acquire the property in February 2014 attracting several investors. Prior to liquidation, the property was owned by the Government of Rwanda and Libyan investors through a then government owned holding company, LAP Green. Madhvani Group runs a number of high-end hospitality establishments in Uganda and Kenya. Among the establishments include Mara Leisure Camp in Kenya, and Chobe Safari Lodge, Mweya Safari Lodge and Paraa Safari Lodge in Uganda. Their entry into the local market is expected to reinvigorate the facility which is one of the oldest hotels in the country. The hotel has about 100 rooms with 14 suites, four conference rooms, a swimming pool, tennis court and a mini-golf course. The sale comes at a time when internationally renowned hotel brands have ventured into the Rwandan market with brands such as Radisson Blu, Marriott, Serena and Golden Tulip dominating the high-end market. editorial@newtimes.co.rw

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Madhvani edges closer to Umubano Hotel takeover