The Ethiopian Privatization and Public Enterprises Supervising Agency has approved the transfer of the state-owned Awash Winery S.C. to Blue Nile Investment PLC for 459.9 million birr offer.

However, Blue Nile is expected to make payment within a short period of time. Since more than half of Blue Niles shares is owned by a foreign company which as no prior business activity in Ethiopia, the Ethiopian Privatization and Public Enterprises Supervising Agency required Blue Nile to make advance cash payment in foreign currency  amount equaling 8-miles shares in Blue Nile.

The Ethiopian Privatization and Public Enterprises Supervising Agency has also included a 500ha farm located in Merti Jirsru which along with another 42ha vineyard in Zeway used to supply grape to the factory in this round of bid.

Previously, the PPESA's has attempted to sell Awash Winery through negotiation and bid, however, PPESA's attempts has successively failed to attract bidders/buyers offering greater than the indicative price.

Blue Nile is a partnership between real estate developer Mulugeta Tesfakiros, and 8 mile, an equity firm chaired by Bob Geldof.

Awash Winery has the capacity to produce 7 million liters of wine per annum.

Source: Fortune