Ethiopia: TIRET Bought Kombolcha Textile for 450 Million Birr

Ambassel Trading House PLC, one of the subsidiary companies for TIRET, has bought Kombolcha Textile after it has settled the 35 percent down payment required for privatization. It was for 450 million that Ambassel acquired the enterprise from Ethiopia’s government.

It was on July 6, 2017 that the agreement was inked by Girma Amentea (PhD), Minister of Public Enterprises, and Mitiku Beyene, CEO of Ambassel and deputy CEO of TIRET.

We agreed to transfer Kombolcha to Ambassel because the company has provided us with a very comprehensive business plan,” Girma explained.

It is to be recalled that TIRET was awarded Bar Dar Textile factory and Kombolcha Textile factory. Back in April 2017, TIRET made the 35 percent down payment to fulfil its requirement.

After tender was floated for the 2 factories in late 2016, there was a strong interest from a Pakistani firm called UpFront Management and Consultancy PLC.

According to The Reporter, the price from TIRET was below what the Ministry of Public Enterprises had reserved as a minimum price tag for the 2 plants. This called for the intervention of the Prime Minister Office (PM Office).

It was after the PM Office gave the go ahead that TIRET was granted the permission to acquire the 2 textile factories.

This is not the first time for TIRET to acquire enterprises after being floated for privatization by the government. It is to be recalled that TIRET’s subsidiary, Tikur Abay Transport, has purchased Bekelcha Transport Share Company.

Source: The Reporter

Exchange Rates

Selling Buying
USD US 23.634  23.1706 
GBP UK 30.599  29.9897 
EUR EU 27.1508  26.6091 
CHF CHE 24.588  24.0959 
CAD CA 18.7378  18.3646 
AED UAE 6.4347  6.3084