By STANDARD REPORTER
NAIROBI, KENYA: Hong Kong-based company Frontier Services Group Limited has acquired 49 per cent of local aviation firm Phoenix Aviation Limited for $14 million (Sh1.2 billion).
The deal effectively makes Phoenix a subsidiary of Frontier Services. The latter plans to use its new acquisition to extend its secure logistics and transport services across East Africa and beyond using Wilson Airport as its hub. The Hong Kong Stock exchange was notified of the deal on March 31.
Frontier Services said it is targeting multinational and local mining and oil exploration firms as well as Government and non-governmental organisations, the firm said in a press statement yesterday.
Frontier Services said Phoenix Aviation’s portfolio of air ambulance, regional cargo and passenger services and aircraft repair and maintenance businesses were the key reasons it invested in the company.
Other services to be retained are search and rescue operations, transport of Government and prominent private sector individuals.
“We believe Phoenix is the best there is in Africa in its sector of aviation. The founders of Phoenix are some of the pioneers of the legendary Kenyan aviation sector,” said Gregg Smith, Chief Executive Officer of Frontier Services.
Mr Smith noted that by selling shares in the business to the company, Phoenix Aviation are trusting that Frontier group would take it into its family of companies.
OPERATING TEAM
“We intend to work with their very experienced and talented operating team, to expand the fleet and its maintenance operations,” the Frontier Services CEO said.
“We are delighted to expand our presence within the Kenyan aviation and business communities. With Phoenix, a solid foundation is now laid for our on-going expansion as a logistics, transportation and risk management services provider with continent-wide reach,” added Smith.
