Capital Ethiopia Newspaper

Two PPESA enterprises seek buyers

The Privatization and Public Enterprises Agency (PPESA) offered five businesses for sale but so far only three have attracted interested parties since the bid was launched. 
Commercial Printing Press, Fafa Food Complex share company’s warehouse and Caustic Soda Ash Share Company had bid offers, while Hamaressa Edible Oil Share Company and Batu Construction Share Company received no bid offers.
Capital learnt that there is a court injunction against the Ethiopian Fiber Enterprise on behalf of the recently privatized Hawassa Textile Share Company, who are in dispute regarding ownership. 
Fafa Food and Caustic Soda managed to attract a slightly larger bid offer than PPESA opened with at the reading held on May 21.
PPESA had set a floor price of just above seven million birr for Fafa. Najib Ababiya offered 7.3 million birr with a 34 percent immediate payment and 66 percent to be paid before the acquisition is completed.
Caustic Soda’s 14.36 million birr offer by PPESA was matched at 14.868 million birr by M.C.C Import enterprise to be paid 40 percent upfront, 35 percent within six months and the rest before the end of one year.
Commercial Printing Press stood well below the bid offering of 58.726 million birr by PPESA with the sole bidder Suha Private Limited Company offering just 27 million, with a 50 percent payment upfront and the rest to be paid in a five year period. 
According to Wendafrash Assefa, public relations head of PPESA there is a high possibility that Fafa Food complex and Caustic Soda Share Company will be sold while Commercial Printing Press will remain under PPESA’s administration for now, according to a government proposal.
Before the two companies are possibly sold the proposal will be taken to the board of PPESA chaired by Aster Mamo, Government ‘Whip’ at the House of Peoples Representatives, with a ministerial portfolio.
The Privatization and Public Enterprises Agency was established when the Ethiopian Privatization Agency merged with the Public Enterprises Supervising Authority in 2004.
It currently has 54 public enterprises under its belt seven of which are in the process of being sold to new owners. The plan is to have only 11 strategic public enterprises including Berhanena Selam Printing Press, Ethiopian Petroleum Enterprise and Comet Transport Share Company.
Upper Awash Agro Industry, Ethiopian Coffee Processing and Warehousing Enterprise, Kality Metal Factory, Bilito Siraro Agricultural Development Enterprise, Abobo Agricultural Development Enterprise, Gojeb Agricultural Development Enterprise and Ethiopian Marble Industry are all in the final stages of being privatized.