Awash Winery finally attracts buyer


After repeated attempts the Privatization and Public Enterprises Supervising Agency (PPESA) managed to get an offer higher than the floor price it had set for Awash Winery when the bid for six public enterprises was opened on December 20. The floor price set for the winery was 438,604,756 birr.
Sileshi Tujji, Senior Corporate Communications Expert at PPESA said Blue Nile Private Limited Company offered a price greater than the floor price, offering 458,400,000 birr while another firm Bosberi PLC offered a much lower offer of 277.4 million birr. Blue Nile PLC bid offer stipulated that it will pay 35 percent upfront, with the rest to be paid in five years, while Bosberi PLC had determined that it will pay 100 percent upfront, with 30 percent before the signing of the agreement and the rest 70 percent after the handover.
The other two state enterprises put up for auction, Bilito Siraro Agricultural Development Enterprise and Arba Gugu Coffee Plantation, however, attracted buyers that offer lower prices from the agency’s floor price. 
Alkid Construction PLC had offered 46.6 million birr for Bilito Siraro below PPESA’s threshold of 58.8 million birr, while Alfoz PLC offered 20 million birr for Arba Gugu Coffee Plantation well below the proposed floor price of 62.7 million birr.
Meanwhile the other three public enterprises, Hamaressa Edible Oil Share Company, Construction Works and Coffee Technology Development Enterprise and Commercial Printing Press, did not manage to attract any interested buyers.
A decision on the possible purchase of Awash Winery and the fate of the five other public enterprises is expected to be decided in the next three weeks after being presented to the board of the Agency chaired by Aster Mamo.
PPESA was established with the merger of the Ethiopian Privatization Agency and the Public Enterprises Supervising Authority with a view to coordinating the implementation of the privatization program with the activities of public enterprises in 2004.