Capital Ethiopia Newspaper

Ten businesses could be privatized this week

This coming Friday could be the day that six state coffee farms and four other enterprises are officially handed over to private investors.

The Privatization and Public Enterprises Supervising Agency (PPESA) is expected to give a final decision with regards to Awash Winery, Batu Construction, the villa house of Batu Construction, Construction Works and Coffee Technology Development Enterprise, Ghion Hotel and  seven coffee farms that are under Limu Coffee Farm and its head office located in Jimma town.
The Agency’s Board is the last entity to approve the sale of any public enterprise and they are expected to approve the transfer to the bid winners.
Wondafrash Assefa, public relations head of PPESA, told Capital that the bid evaluation document was submitted to the board chaired by Aster Mamo, Government Whip in Parliament, on Thursday September 13.
“The board is expected to give a final decision this coming Friday,” the head of public relations explained.
On August 8 interested bidders appeared with their offers to buy the public enterprises.
Construction Works and Coffee Technology Development Enterprise, and Ghion Hotel are the only enterprises that did not attract interested buyers.
Horizon Plantation, one of the recently formed agricultural companies of Ethiopian born Saudi business tycoon Sheik Mohammed Hussein Al-Amoudi, was the only company that offered a huge bid amount to own the six farms and the head office.
Horizon offered a total of 1.184 billion birr for the ownership of six farms and the head office of Limu Coffee Plantation located in Jimma town.
Goma I, Goma II, Cheleleki, Gumer, Suntu and Soka are the six farms that were offered during the bidding process under Limu Coffee Farm. According to Horizon’s bid document it offered 266.6 million birr as a maximum price for one of the six farms and a minimum price of 70.9 million birr. The company has also offered 60.4 million birr for the ownership of Limu Coffee Plantation head office. Horizon proposed to buy the whole farm with a 35 percent upfront payment and 65 percent of the payment to be paid over five years.
SA Bageresh has also offered 186.1 million birr for Goma I and the head office and 174.1 million birr for Goma II. The other local company Mulege Plc has offered the highest amount of 186.1 million birr to own Goma I and 20 million birr for the farm head office. Recently, Al Amoudi’s companies including Horizon have agreed with PPESA to own Ethiopian Marble Enterprise, Gojeb farm, Upper Awash Agro Industry, Abobo farm with a total price of over 1.3 billion birr.
Awash Winery had a bid offering lower than 270 million birr (USD 15 million) from Basbery Investment Holdings Limited with a 100 percent payment. But the American company’s offer is under the floor price set by PPESA, which is 438.6 million birr. For the ownership of Batu Construction SC and Batu Construction SC villa house Muller Industry PLC and Ascu Batu PLC have been offered their bid  respectively.
The companies have offered 119 million birr for the construction enterprise and 10.1 million birr for the Villa, while the floor price is 118.7 million birr and 6.29 million birr correspondingly. Construction Works and Coffee Technology Development and Engineering Enterprise was also on the bid table but did not get any bidders like Ghion.