On 11 November, bids on the sale of 51 percent stake of Kinyara Sugar Works were opened and eight companies were named as interested.
The companies are:
· Kagera Sugar and Energy Company of Tanzania,
· Libyan Arab Foreign Investment Company (LAFICO) of Libya,
· Deep River Reau Champs Ltd of Mauritius,
· The Rai Group of Kenya,
· Madhvani Group of Uganda, also owners of Kakira Sugar,
· Olam International Ltd, a consortium from Singapore and Thailand,
· Illovo Sugar Ltd of South Africa, and
· Industrial Promotion Services (IPS) in conjunction with Transvaal Sugar Company Ltd and Booker Tate Ltd. (the latter two based in South Africa).
By the end of November, the pre-qualified bidders would start due diligence work, and Uganda’s Privatisation Unit expects that the sale would be completed by March 2006. According to the privatization program, 10 percent of shares would to to outgrowers (independent cane farmers), 10 percent to the Bunyoro Kingdom, where the estate is located, and 10 percent to the employees. The remaining 19 percent would be listed on the stock exchange.
Last November 2004, the government invited bids for the pre-qualification stage in the purchase of Kinyara’s majority stake. After bidders are pre-qualified, the would submit their technical and financial proposals.