Meta Abo Brewery and Ras Hotel Bid Result Approved, Diageo buys Meta Abo for $35 million

by yeEthiopiaforums

The Privatization and Public Enterprises Supervising Agency (PPESA) board approved the bid results for Meta Abo Brewery, Addis Ababa Ras Hotel and other public enterprises.
The board, chaired by Aster Mamo the government whip at the parliament, has given a final decision for the enterprises on the evening of Friday September 30, 2011.
Heavy international breweries and beverage producers had offered large amounts for Meta, the third biggest brewery following BGI Ethiopia and Dashen Brewery, on the bid that opened on September 1, 2011. The biggest offer by far was Diageo’s by 35 million dollars.

PPESA, the regulatory body that controls public enterprises, had said that the board would give the final decision two weeks after the bid process was completed,  but delayed announcing the final decision for one month.

Diageo buys Meta abo brewery for $35 million dollars
Wendafrash Assefa, public relation head of PPESA told Capital, that the board was not able to make the final decision earlier as members of the board had been occupied on other duties.
The PPESA board includes high government officials and the enterprise heads.
According to the board’s decision, on the settlement of the 225 million dollars (3.8 billion birr) payment that it offered for the brewery, Diageo, the UK based and world leading premium drinks company, will control Meta. The second highest offer for Meta Abo was made by Sab Miller, while other participants were the popular Dutch brewery, Heineken, and Dashen Brewery with Duet.   Meta Abo Brewery is located 20 km west of Addis Ababa around Sebeta town of Oromia Regional State. On Friday, the PPESA board also gave its final decision on the privatization of Addis Ababa Ras Hotel, one of the oldest hotels in the country. The bid was awarded to Ayat Share Company, which offered 124 million birr for the ownership of the Ras hotel. Ayat’s bid offer made  on September 1 indicated that it will pay the first 37 percent installment upon receiving ownership of the hotel and will settle the balance within four and half years.
The other company that had shown interest in owning the Ras Hotel is Sheger Investment and Hotel. It offered 121 million birr with a first instalment of 35 percent and the balance within five years time.
The board also made a decision on Bilito Siraro Agricultural Development (which is part of Hawassa Agriculture Development Enterprise) on Friday. The farm was awarded to Accor Construction for 80.2 million birr.
The board has yet to reach a decision on Abebo Agriculture Development which only had one interested buyer when the bid opened in early September. It is possible that the board may put the farm up for another auction due to the lack of interest it received first time round.


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