Capital Ethiopia Newspaper

PPESA transfers Limu Coffee plantation to al-Amoudi for 1.18 bln br

The board of Privatization and Public Enterprises Supervising Agency (PPESA), a supervisory body of state enterprises, has decided to give six Limu coffee farms and its head office to the Ethiopian born business tycoon at a total cost of over 1.18 billion birr. On Friday September 28 the board also approved the privatization of a villa house owned by Batu Construction.

Wondafrash Assefa, public relations head of PPESA, told Capital that the board chaired by Aster Mamo, Government Whip in Parliament, has decided to put up Awash Winery for another bid.
Horizon Plantation, one of the recently formed agricultural companies of the Sheik, was the only company that offered a huge amount to own the six farms and the head office located in Jimma. He now has approval from the board to own the state farms and the headquarter office complex. 
Horizon offered a total of 1.184 billion birr for the ownership of the six farms and the head office of Limu Coffee Plantation.
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.
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 also offered 60.4 million birr for the ownership of Limu Coffee Plantation head office.  Based on the bid document Horizon will pay 35 percent upfront and the rest 65 percent to be paid in a period of five years.
On the bid that was opened on August 8, SA Bageresh 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 that has a successful coffee export business has offered 186.1 million birr to own Goma I and 20 million birr for the head office.
According to Wondafrash, the board has decided to transfer the villa owned by Batu Construction to Ascu Plc, which is the only bidder. Ascu has offered 10.1 million birr for the villa, while the floor price was 6.29 million birr.
The board has decided to cancel the bid for Batu Construction, which got only one bidder when the bid opened two months ago. Muller Industry Plc has offered 119 million birr for the ownership of the construction enterprise, but the offer by the company is only 300,000 thousand birr higher than the floor price.
The PPESA board has also decided to sell the only state owned and one of the two wineries in the country through another bid.    
In the August bid 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.
Construction Works and Coffee Technology Development Enterprise, and Ghion Hotel were the only enterprises that did not attract interested buyers on the August bid.