The Zambia Privatisation Agency is pleased to announce that the Minister of Finance Honourable R D S Penza has signed the sale agreement with Mr Stanford M Hlazo for the sale of La Hacienda Hotel.
The Hotel which is 7-roomed is located in Mumbwa, Central Province, about 153 Km from Lusaka. La Hacienda Hotel is owned by National Hotels Development Corporation (NHDC) a subsdiary of the Zambia Industrial Mining Corporation (ZIMCO) ( in liquidation).
La Hacienda, which in Spanish means "the House", was constructed in
1952 by a Mr. Jukes Curtis. It was originally built as a house for his
family. Following the building of additional wing the house was converted
into a family hotel. In 1972 the Hotel was nationalised by the Government.
The Hotel is a modern and quite attractive facility which also serves
as a stop-over for food, refreshments and accommodation for tourists entering
the Kafue National Park using the Lusaka - Mongu main road.
The hotel with accommodation comprising 7 double rooms offers an ideal range of facilities such as public bar, cocktail bar and snack bar ancillary services such as luggage porterage and letter mail, same-day laundry service.
Mr Hlazo, who was until a while ago Member of Parliament for Mumbwa until he resigned from the ruling MMD, has purchased La Hacienda for a total consideration of K265 million.
This consideration comprises:
| KWACHA | |
|---|---|
| Cash payment for the Hotel | 25 million |
| Capital expenditure investments and working capital | 200 million |
| Total liabilities taken over | 40 million |
| Total investment package | 265 million |
The cash proceeds from the 100% sale of the Hotel will flow in two stages as follows: 35% on signing the sale agreement and the balance on completion which is expected in the next 120 days.
La Hacienda is one of the hotels which were earmarked for sale on the basis of a right of first refusal to the Management/Employee Buy Out Teams (MBO) in accordance with Cabinet approval.
The ZPA Secretariat evaluated and rejected the bid submitted by the MBO Team and consequently, the Hotel was offered for sale on a competitive bid basis.
La Hacienda was locally advertised for sale and three bids were received and ranked as follows:
1. Mr Stanford M Hlazo offered a purchase price of K30 Million payable cash down, K15 million redundancy costs to be taken, K10 million initial working capital injection and K200 million capital expenditure commitment.
2. Mr Gerald Hughs & Ms Gretude Banda offered K36 million payable cash down and K240 million capital investment commitment
3. Chainama Hotel offered K10 million payable cash down and K110 million capital investment commitment.
The Agency short listed and invited for negotiations only one bidder Mr Hlazo who had a superior bid. The transaction was negotiated by an independent team composed of Mr Don Maila of WITS Limited as the Team Chairman and Ms Levina Mubita as the Team Lawyer, both individuals of high integrity appointed by the ZPA Board.
The negotiators extensively used the valuation prepared by Deloitte & Touche and achieved an optimum price subject to the valuation which was K11 million.
The Purchaser's Business Plan includes an ambitious rehabilitation and marketing programme to provide quality services which he hopes will earn him a broader clientele base. The proprietor also intends to link up operations with the operators of camps and sites in Kafue National Park.
The Hotel will also planned become a sporting resort. The Purchaser has already started carrying out extensive rehabilitation work to the Hotel and the exercise is almost complete. The Purchaser is also targeting to construct 20 more rooms within the next 12 months.
The acquisition by Mr Hlazo of La Hacienda marks yet another significant demonstration of Government's commitment in ensuring that Zambians participate in the Zambian privatization programme through a free and fair competitive bidding system that Zambia Privatisation Agency (ZPA) has had since its inception.
Back to Zambia Privatisation Agency (Zpa) Home Page | Back to Press Releases Menu