OPENING OF BIDS FOR MALUTI HIGHLANDS ABATTOIR AND FEEDLOT COMPLEX

The Privatisation Unit opened the bid for Maluti Highlands Abattoir and Feedlot Complex on Tuesday. The bid received was from a local company called Maluti Cut-Rite Butchery. This opening followed an extension for deadline for submission of bids from Friday 2^nd July to 9^th July 2004 in response to requests from several interested groups. 

The Government has changed the restructuring of the Abattoir and Feedlot Complex from outright sale to long term lease of the enterprise. The intention is still to encourage as much participation of local investors as possible as was envisaged in the original Privatisation Scheme.  The strategy envisages an anchor investor or investment group that would have the majority shareholding with the rest sharing the balance. 

As a way forward, the company would be registered with an initial ownership by Government. The Government shareholding in the company would then be sold to bidders who have expressed interest in the enterprise, in proportion to their financial strength through unequal shareholding in the Company. 

Advertisements for leasing of the Abattoir and Feedlot Complex were placed in the local media in Mid-May 2004. Ten (10) expressions of interest were received by the set deadline of 28th May 2004.  Letters requesting proposals were subsequently sent to potential investors specifying that: 

• A technical proposal detailing any particular skills or relevant experience that will be brought to the operations of the business be shown;

• A financial proposal outlining the amount of funds that would be available for purchase of shares; if shares were offered at M1. 00 per share be indicated; and

• Any other business contribution such as association with potential producers (lihoai) or markets be mentioned.

Only one expression of interest was received from Maluti Cut-Rite Butchery by the set deadline of Friday 9^th July 2004.

 The Ministry of Agriculture and Food Security was also represented at the bid opening.

It is to be noted that the transaction leading to the restructuring of the Maluti Highlands Abattoir and Feedlot Complex is being handled in accordance with the Privatisation Act of 1995

The Sesotho version is available here.