Hong Kong Stock Exchange-listed firm Frontier Services Group (FSG) Limited has completed the acquisition of 49 per cent stake in Kenya's Phoenix Aviation Limited.
The $14 million (Sh1.2b) transaction, which was formally announced at the Hong Kong Stock Exchange on March 31, 2014 has received a nod of approval from both the Board and shareholders of Frontier Services Group and Phoenix Aviation.
The Kenyan aviation company now becomes part of the integrated logistics firm's global footprint, which brings specialised aviation logistical capability that will enable Phoenix Aviation expand both its reach and capability.
Frontier Services on the other hand gains the benefit of Kenyan and East African expertise and market knowledge in its drive to become the premier pan-African logistics provider to multinational and local corporations as well as Non-Governmental Organisations (NGOs) and government agencies.
Frontier Services CEO, Mr Gregg Smith said that in addition to having world class team of pilots technicians, Phoenix is a large operation capable of serving a diverse customer base.
He said Phoenix's leadership team shares Frontier Services' vision to build a much more robust business centred on the Kenyan aviation sector – a business with the capability to invest and grow with the increasing number of multinational businesses moving into East Africa.
"We are confident that this partnership will enable us strategically grow a pan-African offering of aviation to serve both corporate and humanitarian missions," added Smith.
Frontier Services' investment will expand Phoenix's medical evacuation capacity, leveraging last-mile aviation and construction capability to penetrate closer to frontier environments where people are working and where humanitarian services are required.
Last-mile capability will shorten response time by enabling aircraft and doctors be positioned closer to evacuation sites.
Mr Steve Parkinson, CEO of Phoenix Aviation said the firm is one of the oldest aviation companies in Kenya with a fully developed Safety and Quality system that exceeds European standards, in some cases.
The company, he added, has been audited and certified to meet the highest standards demanded the United Nations and Oil and Gas producers.
He noted that Phoenix Aviation in conjunction with AMREF flying Doctors has become an intergalactic part of the emergency services and rescues over a 1000 patients a year throughout the region.
"Our partnership with Frontier Services will enable us expand our reach and coverage reaching many more people with much-needed medical evacuation services," said Parkinson. Phoenix has operated throughout Africa from its operational headquarters at Wilson Airport in Nairobi since 1994.
The firm's principal business activities include provision of worldwide air ambulance services, cargo and passenger movements, repair and maintenance of its own and third-party aircraft in East Africa.
It also undertakes search-and-rescue operations and transport of government and prominent private sector individuals. It plans to become the premier provider of logistics services in Africa with Nairobi, as its gateway to East Africa.
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