Business Daily
Date: 17.01.2017
Page 20
Article size: 429 cm2
ColumnCM: 95.33
AVE: 181133.33
Investment group's energy subsidiary
seeks Chinese suitor to sell 40pc stake
?GROWTH FEP
tain Technologies is currently executing
boss says strategic
investor will help the
thority project to light up off grid areas,
funded by the Arab Bank for Economic
Development in Africa, Saudi Fund for
Development, and OPEC fund for De­
unit to bid for multi­
velopment.
billion shilling tenders
region and parts of Nyandarua where it is
a Shi billion Rural Electrification Au­
The unit was allocated the South Rift
installing430 kilometres of power lines
meant to connect households, schools
BY DAVID HERBLING
and other public facilities.
Investment group Fountain Enterprise
Programme (FEP) Group is shopping for
a deep­pocketed Chinese investor to ac­
Informal artisans
This infrastructure­focused unit is also
implementing a $5 million (Sh500 mil­
lion) solar farm proj ect in Accra, Ghana,
awarded by the Public Utilities Regula­
tory Commission, said Mr Korir.
The project will see Fountain Tech­
quire a minority stake in its energy­fo­
cused subsidiary that recently landed
big­ticket deals in Africa.
The investment group, partly backed
by the Kenyan diaspora, is seeking to
offload a 40 per cent stake in Fountain
Technologies, a wholly­owned unit that
focuses on energy, IT and infrastructure
nologies install solar for informal arti­
sans on the outskirts of Accra.
"Subject to availability of working
capital, we have another $15 million
(Shl.5 billion) of potential jobs under
the Ghanaian utilities regulator, which
will be rolled out this year," the FEP
works.
FEP chief executive Maurice Ko­
rir said a strategic investor will help
the unit acquire a war chest to bid for
multi­billion shilling tenders such as
power plants, telecoms, and electric­
ityprojects.
"We would prefer businesses already
in this space such as Chinese firms with
technical and financial capacity. We want
to grow our balance sheet so that we can
tender for big ticket jobs," Mr Korir told
Business Daily.
"Valuation of the business is ongo­
ing. We hope to close this deal by mid
next year," he said. Chinese firms domi­
nate Kenya's energy and telecoms deals.
They include Sinotec, PowerChina, China
Jiangxi Corporation, China Machinery
In Figures
40pc
Percentage of shares that the in­
vestment group is seeking to of­
fload in Fountain Technologies
Engineering Corp, Huawei, and ZTE
Fountain Technologies registered a
six fold growth in revenue to Sh230 mil­
lion in the period to December 2015 from
Sh38 million a year earlier. Mr Korir said
big energy and infrastructure projects
Fountain Enterprise Programme Group
chief executive Maurice Korir. file
offer higher margins but are capital
intensive, hence the need to seek ad­
ditional equity.
The chama is particularity keen to
cash on Kenya's plans to achieve univer­
sal electricity access and grow generation
capacity by5,000 megawatts ­ where lo­
cal firms have preferential treatment in
winning tenders.
The unit has a pipeline of ongoing
projects in Kenya and across the region
valued at more than Sh2 billion. Foun­
boss said.
Mr Korir also disclosed that the unit
has recently secured tower strengthen­
ing projects worth Sh70 million for telcos
in Tanzania and a Sh92 million project
for the construction of a sub­station in
Kakuma, Kenya.
Previous works undertaken by Foun­
tain Technologies include upgrading tel­
cos' base transceiver station from 2G to
4G, and installed solar power to more
than 50 schools in northern Kenya areas
namely Samburu, Pokot and Turkana.
[email protected]
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya