Ethiopia
The ministry of public enterprise has confirmed Japan Tobacco International (JTI) has acquired a 40% share of Ethiopia’s National Tobacco Enterprise (NTE). Signed by Messelech Wodajo, state minister for public enterprise, the letter notified JTI of the bid confirmation and requested the company to make the full payment within 10 days.
JTI, making one of the biggest offers in Ethiopia’s public enterprises privatizing history, will pay the whole US$510 million while readying for contract signing. The company’s offer was more than double that offered by another contender, British American Tobacco. Five bidders had made their respective offers for the acquisition but none came close to JTI’s offer.
NTE, established in 1942, was the first tobacco monopoly in the country, following the departure of the occupying Italians. After four decades it was restructured and renamed National Tobacco & Match Corporation. Later, in 1999, it was transformed into a share company with 22% of its shares being transferred to Sheba Investment Group for US$35 million.
Last year NTE collected BR400 million (US$18.4 million) in profit.