Coffee chain Java House’s operations will not be affected by the financial troubles currently facing its parent firm Abraaj Holdings.
Abraaj Holdings Director of Communications Mitali Atal in an interview said Java House will continue to “power ahead with its expansion plans” despite the provisional liquidation of the parent firm in the Cayman Islands to avoid winding-up petitions.
Abraaj Holdings is said to be forestalling two petitions lodged by Kuwaiti Public Institution for Social Security and Delaware-based private debt specialist Auctus Fund Ltd.
Ms Atal explained that Java House is under a fund managed by Abraaj Investment Management Limited, a private equity firm that has full ownership of the coffee chain.
PE fund
The PE fund also holds 10, 21 and 56.2 per cent stakes in milk processing giant Brookside Dairy, Seven Sea Technology firm and private healthcare provider Avenue Healthcare, respectively.
“Abraaj Holdings is not the shareholder of Java House. A fund managed by Abraaj Investment Management Ltd (Abraaj Africa Fund III) has invested in Java House,” said Ms Atal.
“The provisional liquidation for Abraaj Holdings is a court supervised restructuring process which will ensure the company can move forward with an orderly restructuring plan.
“It will have absolutely no impact on the day to day management of the funds and the underlying portfolio companies,” she said.
Trouble at the fund arose early this year after some investors in its Sh103bn healthcare fund accused Abraaj of mishandling their cash.