The Zambia Privatisation Agency is pleased to announce that the Minister of Finance Honourable R D S Penza has signed the sale agreement with Hon. Bennie H W Mwiinga for the sale of 100% shares in Lake Hotels Limited.
Lake Hotels Limited, trading as Manchinchi Bay Lodge, is a 30-room hotel located on the shores of Lake Kariba in Siavonga. Lake Hotels Limited is owned by ZamCargo Holdings Limited which, in turn is owned by the Zambia Consolidated Copper Mines Limited (ZCCM).
The construction of the premises commenced in 1983 and was completed in 1987. Manchinchi Bay Lodge became operational in 1987. The Hotel is a modern and quite attractive facility with well maintained surroundings.
The hotel accommodation comprises two single storey detached buildings and offers a full selection of tourist and conference facilities, including 30 air conditioned and carpeted rooms with twin/double beds, a separate air conditioned conference centre, restaurant with a seating capacity of 80 people, cocktail bar, swimming pool, and boat dock.
Hon. Bennie H W Mwiinga has purchased 100% of the shares in Lake Hotels Limited for a total consideration of US$949,158.
This consideration comprises:
| US$ | |
|---|---|
| Cash payment for the 100% shares | 611,400 |
| Capital expenditure investments | 235,351 |
| Total liabilities taken over | 102,407 |
| Total investment package | 949,158 |
Lake Hotels was extensively advertised for sale and seven bids were
received and ranked as follows:
1. Mr Mbita Kabalika offered US$1 Million purchase price and an unspecified long-term capital investment commitment of US$2 Million.
2. Hon Bennie H M Mwiinga offered US$510,000 payable cash down and
K195 million capital investment commitment. The bidder declared his interest
on Monday July 24, 1995 in the National Press.
3. Mr Promise M Shinondo offered K500 million payable K80 million cash
down and balance payable within 120 days of handover of the company with
US$200,000 capital investment commitment.
4. Mr Mebelo Mutukwa et al offered US$ 200,000 payable cash down and
US$300,000 capital investment commitment.
5. Mr Miyanda Gwaba offered K800 million payable K100 million cash
down and balance deferred over five years with K72.5 million capital investment
commitment and initial working capital of K48 million.
6. Andrews Motel offered K600 million payable K100 million cash down
and balance deferred over five years.
7. Mr Stuart Mark O'Donnell and Mr Mark Harvey offered US$200,000 payable US$100,000 cash down and balance deferred over four years with US$505,000 capital investment commitment and US$100,000 working capital.
All seven bidders were short listed and invited for negotiations. The transaction was negotiated by an independent team composed of Mr Trevor Evans as the Team Chairman and Mr Elias Chipimo Jr as the Team Lawyer, both individuals of high integrity appointed by the ZPA Board. The negotiators extensively used the valuation prepared by Coopers & Lybrand and achieved an optimum price subject to the valuation.
Negotiations were concluded with Mr Mbita Kabalika who failed to pay the purchase price thereby prompting the Agency to invite improved offers from two highly ranked bidders who had been put on hold. Hon. Mwiinga emerged as the winning bidder and the Agency sold the company to him.
The Purchaser's Business Plan includes a management contract with the Protea Hotels group. Protea Hotels is a major international hotel group headquartered in Cape Town, Republic of South Africa.
Protea Hotels is one of the largest hotel ownership and management groups in Africa, owning and managing a chain of 85 hotels located in 13 African countries from Cape to Cairo.
The Protea Hotels group working in conjunction with the proprietor have put up an ambitious long-term programme to expand the operations of the Hotel and market it internationally.
The proprietor believes that the presence of the Protea Hotels group in Lake Hotels will enhance product quality, improve management skills, and facilitate the acquisition of advanced tourism technology that will increase the hotel's penetration of external tourism markets.
The acquisition by Hon. Bennie H W Mwiinga of the 100% shares in Lake Hotels Limited 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 in place since its inception.
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