The Zambia Privatisation Agency (ZPA) is pleased to announce that the Minister of Finance Honourable R D S Penza has signed the sales agreement with the Management/Employee Buy Out Team (MBO) for Mansa Hotel Limited led by the Hotel Manager Ms Mary Pepala, for the sale of 100% shares in Mansa Hotel Limited. The distribution of the shares is as follows:
| Employees | 35% |
| Management | 65% |
| Total | 100% |
Mansa Hotel Limited is a 30 roomed hotel, located in the town centre of Mansa in Luapula Province and is wholly owned by the National Hotels Development Corporation (NHDC) which, in turn is owned by the Zambia Industrial and Mining Corporation Limited (ZIMCO) (in liquidation).
Mansa Hotel was constructed in 1986/87 as a new bungalow-style hotel, and officially opened in 1987.The Hotel's rooms arrangement is flexible with two beds in each room while suites can be created on request by combining interconnecting rooms.
The Hotel is relatively modern and appears quite attractive with good lawns and generally well maintained surroundings.
Mansa Hotel is one of the hotels 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 accepted the bid by the MBO Team. The negotiating team successfully concluded negotiations with the MBO Team and the Equity Partners.
The transaction was negotiated by an independent team lead by Mrs Nellie Mutti as the Team Chairman appointed by the ZPA Board. The negotiators extensively used the valuation prepared by Deloitte & Touche and achieved an optimum price subject to the valuation.
The total consideration for the Hotel is K405 million. This consideration comprises:
| K'000 | |
|---|---|
| For the credit of the Privatisation Revenue Account | 225,000 |
| Capital expenditure investments | 180,000 |
| Total investment package | 405,000 |
The cash proceeds from the sale will flow in stages as follows; 10% on signing the sale agreement and the balance to be paid over the period of three years.
The Management/Employee Buy-Out Team have made a commitment to improve the standards of the Hotel through improvements and new investments. These improvements will include general room refurbishment and property maintenance.
This is the first MBO to be lead by a lady who also has ably managed this Hotel to date.
The acquisition by this team of Zambians, of Mansa Hotel demonstrates yet another significant achievement in Government's commitment in ensuring that Zambians participate in the Zambian privatization programme.
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