Rogers Group Limited, a Mauritanian investment group, recorded a Kshs 113.6 million gain in a bargain purchase acquisition deal of Rongai Workshop and Transport Limited, a renowned transport and logistics company in Kenya, through its logistics subsidiary Velogic Limited.
A bargain purchase occurs when a company is bought at a price that is less than the fair market value of its net assets, and the difference is then recorded as a gain.
The Mauritian conglomerate announced that it had completed the acquisition of the trucking company in March 2023, but was yet to disclose the value of the transaction.
However, the investment firm has not yet revealed the amount it paid in the transaction.
The move by Rogers Group is part of its international development strategy, which aims to strengthen its footprint in emerging high-growth markets as it reinforces its commitment to positioning itself in buoyant African markets.
Rongai Workshop and Transport Limited is one of the largest road transport companies in the country in terms of territorial destinations served, with a long-standing presence in the country tracking 75 years, and boosts of a fleet of 160 vehicles.
The acquisition will enable Velogic Limited, which has been operational since 2016 to offer a broader range of logistics services and to expand its customer base and transport network in the East African region.
Additionally, the firm is planning to expand into Rwanda through Rogers Capital, its Finance and Technology segment, further reinforcing the significance of the East African region in its expansion plan and development strategy for exponential growth.
Source Cytonn Investments