Capital Ethiopia Newspaper

Al-Amoudi offers 1.3 bln birr to privatize four enterprises

Awash Winery finally attracts buyer

 

The Ethiopian born Saudi business tycoon Sheik Mohammed Al-Almoudi’s firms dominated the bidding process on February 24, 2012 by offering bids on four of eight state owned enterprises.

MIDROC Ethiopia’s sole bid offering for Upper Awash Agro Industry at 830 million birr was the largest amount of money by a company for a state enterprise. MIDROC had proposed to buy it with a 35 percent upfront payment and 65 percent of the payment to be paid over five years. 

The oldest public farm, Abobo, managed to attract one bidder from the newly formed Al- Amoudi’s firm Saudi Star Agricultural Development. They bid 90 million birr. Saudi Star offered to pay 45 percent up-front and the rest in 4 and half years.

Ethiopian Coffee Processing and Warehousing Enterprise was the only public endeavor to attract two bidders. Al-Amoudi’s Horizon Plantation offered the largest amount of 228.2 million birr. It proposed to pay 50 percent up-front and the rest within 2 and half years. Ambassel Trading Company an endowment fund affiliated with the ruling Amhara National Democratic Movement (ANDM) offered a lesser amount of 135 million birr. It had offered to pay 35 percent up front and 65 percent within five years.

Horizon Plantation had also offered a bid for another public enterprise amounting to 35.1 million birr for Gojeb farm with 50 percent upfront and the rest to be payable in two and half years.

National Mining Corporation Private Limited Company, which is also in the tycoon’s business wing, offered 110 million birr for Ethiopian Marble Enterprise, offering to pay the entire amount up-front.

Kality Metal Factory also attracted Tsehay Industrial Share Company that offered 555.5 million birr. The company proposed to buy the metal factory with 35 percent upfront payment and the rest to be paid in a period of five years.

Bilito Siraro Farm as well had a singular bid offering with a US based farm Morrell Agro Industrial offering 103.2 million birr for the public enterprise with 50 percent upfront payment and the rest to be paid in three and half years.

After repeated attempts PPESA managed to attract a bidder for Awash Winery. Mulugeta Tesfakiros and Tigist Deneke jointly offered 202 million birr with a 35 percent upfront payment and the remaining 65 percent to be paid over five years. Last year, Mulugeta Tesfakiros purchased Langano Bekele Molla resort for 80 million birr.

The state beverage enterprise has two wineries in Addis Ababa and one in the outskirts of the capital city Sebeta and produces different types of wine for local and foreign markets. Awash used the vine produced on different state owned farms for its production of wine.

Awash Winery is also the only public enterprise which had a bid offering lower than the 397.4 million birr floor price the Agency set.

All the eight public owned enterprises offered for sale except Awash attracted bid offerings more than the floor price set by the PPESA.

Wendafrash Assefa, Head of PPESA’s public relation office said the bidding companies will present their business plans and technical proposals and will be evaluated by PPESA’s committee and then will be handed over to the Agency’s Director General who will present the bid offerings for decision to the Board of Directors headed by Aster Mamo, Government Whip at the House of Peoples Representatives, with a ministerial portfolio.

PPESA hopes to finish selling these public enterprises within one month.