Tsehay Industrials plc is to takeover the publicly Kality Metal Products Factory three months after being declared the winner in the privatization bid tendered by the Ethiopian Privatization and Public Enterprises Supervising Agency.
The handover process was delayed for three months while the agency reviewed the company’s financial capacity to run the factory once it takes it over. Tsehay acquired the manufacturing company for 55 million birr and has paid 35% pre-payment and will pay the remaining 65% over five years.
It is to be remembered that Ethiopia is set to privatize six enterprises through auction as the financial year winds down. Ghion Hotel and Awash Winery are expected to be part of the six according to sources.The minimum price set for Ghion Hotel is expected to be between 100 and 150 million US dollars whereas the indicative price for Awash Winery will be set at 438 million birr according to unofficial sources.
This was not confirmed by Wondafrash Assefa, Director of Corporate Communications for the Privatization and Public Enterprises Supervising Agency.
Other bids include the office of Limu Coffee Plantation Development Enterprise, Engineering Enterprise, Construction Works & Coffee Technology Development and Batu Construction plc.
This will be the third tender issued by the PPESA this fiscal year with nine offers approved in previous bids while other enterprises failed to attract the appropriate amount of interest.
Source: The Reporter
