Ethiopian Privatization and Public Enterprises Supervising Agency is to re-float Caustic Soda S.C after the previous buyer MCC Imports Enterprise, withdraw its contract with the Agency.

Caustic Soda S.C was first floated with an indicative price of 14 million Birr and purchased by MCC Importer and supplier of chemicals to soap and paint manufacturing companies  for 14.8 million Ethiopian birr.

MCC's offer was approved in June, after it made a 40pc down payment and signed a contract.

In contracts signed with the PPESA, companies can withdraw from a contract after paying a fine, 10 percent of their offers.  Down payments made by the bidding companies will be returned afterfine is deducted.

Caustic Soda SC, established in 1994 is the only caustic soda and quicklime manufacturing plant in Ethiopia.

Along with Caustic Soda, nine other companies have also been put up for sell by the privatization agency.

Many of enterprises for sell have been on the auction block multiple times previously. However, two transport companies, Weyra, a major fuel transporter, and Shebelle,  are new on the Privatization tender list. Bid opening date for the ten companies is set for  June 12, 2013.

Source: Fortune