The Komenda Sugar Factory was put on sale after the bid evaluation process was completed, with Pricewaterhouse Coopers (PwC) appointed as the transaction’s advisors.
The Minister of Trade and Industry, Alan Kyerematen who appeared before the floor of Parliament to give an update on the status of the company, confirmed that the recommendation for consideration was made by his ministry and Cabinet.
He said, “The ministry, in an effort to put the factory to viable commercial production, decided to initiate a new process in collaboration with the Transaction Advisor, PwC, to attract a strategic investor to acquire the assets of the Komenda Sugar Factory and manage the company’s operations.”
Mr Kyerematen further noted that “I am pleased to announce that the bid evaluation process has been completed by the Transaction Advisor and a recommendation has been made for consideration by the ministry and Cabinet. I envisage that the final decision in respect of this matter will be taken by the end of April 2019.”
The previous government in late 2016 went through a process of divesting its majority shares to a private investor. However, the process was aborted due to the failure of the identified investor to fulfil obligations under the Sale and Purchase Agreement.
The factory, on opening, was not in a position to produce the required white refined sugar due to the absence of critical processing component units such as a melt clarification unit, vertical crystallisers and dozing system. These are units which were not fully installed during the test-run.
The inability has hence triggered the sale of the factory.