Home Business Mumias now seeks new firms after tycoon leasing bid fails

Mumias now seeks new firms after tycoon leasing bid fails


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Mumias now seeks new firms after tycoon leasing bid fails


mumias

Mumias sugar company. FILE PHOTO | NMG

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Summary

  • Mumias Sugar Company is seeking fresh bids for firms to lease the miller after the collapse of deal with tycoon Narendra Raval to revive the firm.
  • In a public notice Monday, Mumias receiver manager PVR Rao called for bidders to invest in any of its nucleus estate, sugar factory, ethanol plant, mineral water plant, a golf-course, club house, residential estate among other movable properties.

Mumias Sugar Company #ticker:MSC is seeking fresh bids for firms to lease the miller after the collapse of deal with tycoon Narendra Raval to revive the firm.

In a public notice Monday, Mumias receiver manager PVR Rao called for bidders to invest in any of its nucleus estate, sugar factory, ethanol plant, mineral water plant, a golf-course, club house, residential estate among other movable properties.

The fresh bid to have an investor revive the ailing firm follows the move by the parliament in June directing the receiver manager to nullify the initial process that would see Mr Raval compete with seven other individuals to lease the once giant miller.

“With a view to inject a new lease of life and in order to facilitate turnaround of the miller to profitability through modernisation and efficient management, the Receiver wishes to invite investors, who are interested in the leasing of all or any of the above facilities for mutually acceptable period at an agreed monthly lease rent,” read the notice.

Mr Raval, who was planning to inject Sh5 billion to bring the once giant miller into production, said his withdrawal is linked to political attacks that have seen leaders from western Kenya question the process of leasing out the firm.

Parliament argued that the process used by the receiver manager in leasing out the firm was improper, and directed him to call fresh bids.

Unlike the other state-owned sugar firms where the bidding was through public tendering, Mumias was handled through a private treaty between the investor and the bidders.

The miller was in September 2019 placed under receivership by KCB Group #ticker:KCB to protect its assets and maintain its operations.

KCB has been barred from auctioning the plant to secure assets used as security for other loans.

Mumias Sugar owes Proparco Sh1.84 billion secured using the electricity generation plant, Ecobank Sh1.77 billion on the ethanol plant and Sh2.83 billion owed to the Treasury.



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