Sheba Investment Plc is going buy more shares of National Tobacco Enterprise (NTE) in order to get majority share of 60 percent of Ethiopia’s sole tobacco producer and distributor.

Sheba made the deal with the Privatization and Public Enterprises Supervising Agency (PPESA), which is responsible for regulating the public enterprises.

It was in 1999 Sheba, the Yemeni based company, bought 22 percent of NTE’s total share. The current deal gives Sheba 38 percent more of the enterprise’s share.According to PPESA’s Public Relations Head, Wendafrash Assefa, Sheba agreed to pay 1.25 Billion Birr to buy 38 percent more shares. 

Currently NTE has a factory and tobacco farms in different parts of Ethiopia. It has 20 Hectares in Robe, 1,200 Hectares in Blate, 25 Hectares in Hawassa and 1.5 Hectares in Wolyata. Aside from what is collected in these farms the Enterprise collects tobacco from other growers.

The factory uses three types of tobacco plants for its products. These are Virginia, Oriental and Berlet. With regard to its products it is the owner of for cigarette brands and imports 2 globally known cigarettes. 

In related news PPESA plans seven enterprises to bring out for bid in the beginning of the coming fiscal year.

Source: Capital