Ernest & Young Global Ltd won a bid floated by the Public Enterprises Holding and Administration Agency to advice the government in its preparations to privatize state owned sugar industries.
It is to be recalled that in Early April, the Agency invited interested bidders for a Transaction Advisor to provide privatization transaction advisory services for the privatization of state owned sugar estates under the Ethiopian Sugar Corporation and carry out all the necessary work required for the process of privatization transaction.
The Agency issued a statement late this week declaring Ernst & Young the winners of the bid. The Nairobi based international consulting and audit firm was one of 11 international companies that showed interest. However, out of the 11 bidders, only six were said to have met all the technical and financial requirements set in the bid.
According to the Agency, Ernst & Young put in a financial offer worth USD 3,311,298 while the company that came in second, Price Water House Cooper Limited (PWC) offered USD 6,337,198.35.
The specific sugar factories which are slated for privatization include Kuraz-1, Kuraz-2, Kuraz-3, Beles-1, Beles-2, Arjo Dedessa, Kesem, Wolqaite, and Tendaho.
According to the bid document, the Transaction Advisor is expected to prepare a comprehensive plan and recommendation for a successful privatization transaction for the aforementioned sugar factories and undertake the necessary market research and carry out a detailed analysis of alternative transaction approaches with a view to recommending the one most suited for each company or all companies.
According to the information obtained from the Agency, the work to be undertaken by the transaction advisor will also include assisting the client in any activities subsequent to bringing a strategic investor on board as is necessary to close the transaction.
Ernst & Young is expected to commence the advisory role upon the final approval of the bidding committee.
Ernst & Young provide financial advisory services, such as risk management, internal audits, supply chain, operations, accounting and tax advisory, assurance, and auditing services.