Sh860m boon for Treasury in Kwal deal
Treasury Cabinet Secretary Henry Rotich and Treasury PS Kamau Thugge on his right. PHOTO | DIANA NGILA |
What you need to know:
- In the deal presided over by Treasury Cabinet Secretary Henry Rotich, the government is set to pocket Sh860 million in return for long-term commercial agreements.
- Distell brands include Amarula, Two Oceans and Savanna cider.
Kenya Wine Agency’s sale of 24.96 million shares to South Africa’s wine maker Distell Group has reduced government shares in the venture to 46.7 per cent.
In the deal presided over by Treasury Cabinet Secretary Henry Rotich, the government is set to pocket Sh860 million in return for long-term commercial agreements.
The shares were sold at Sh34.50 each, with a nominal value — value as indicated on the share certificate — of Sh5 per share.
THE NEXT FOUR YEARS
“I look forward to realisation of the benefits that privatisation of Kwal promises,” Mr Rotich said.
The sale of shares to Distell is part of a bigger privatisation programme started in 2011 to improve the performance of State-owned entities.
The government had been holding 72.65 per cent stake in Kwal through the Industrial and Commercial Development Corporation (ICDC).
Sale of the 26 per cent stake is the first step by Treasury to exit Kwal ownership, with a further four per cent shares expected to be sold to Kwal employees. The remaining 42.65 per cent stake is to be offloaded over the next four years.
Distell brands include Amarula, Two Oceans and Savanna cider.
