Thursday, February 22, 2024
BusinessJV acquires printing enterprise for close to 329 mln bir

JV acquires printing enterprise for close to 329 mln bir

One of the state-owned printing companies, Artistic Printing Enterprise, has been acquired by a private company run by Feleke Trading PLC and Corporate Computer Center PLC in a joint venture after they were declared winners of the bid worth close to some 329 million birr.

At a ceremony held at the Ministry of Public Enterprises on Tuesday, the ministry and representatives of JV signed the agreement whereby the latter took over the enterprise after they were declared to have paid the initial capital, which is worth 115.1 million birr (which is equivalent to 35 percent of the total price). It was also announced that the remaining 65 percent will be paid in five years-time.

On the occasion, state minister of Public Enterprises, Meselech Wodajo, said that the enterprise was privatized with the view to upgrading the company to a better level from its capacity while it was owned by the government. In that regard, it will eventually make better contribution to the country’s economic development, she said.

She underscored that the agreement was “a good step which would bring in better results”.

According to information obtained from the Ministry, the joint venture was the sole private company that was interested in the bid that eventually made it the winner with no competition.

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The enterprise was one of three state-owned ones that were floated for tender for a public bid in November last year.

The former Privatization and Public Enterprises Supervising Agency (PPESA) has privatized 370 public enterprises across the nation since 1995 and earned a total of 19 billion birr in revenue.

The Ministry of Pubic Enterprises, in the current GTP period, aims to privatize 15 selected public enterprises from a total of 26 remaining ones still owned by the government.

There are still some enterprises, including the Berhanena Selam Printing Enterprise and Educational Materials Production and Distribution Enterprise (EMPDE), among others, that will stay in governmens hands.

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Video from Enat Bank Youtube Channel.

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