Narendra Raval Mumias Bid: Industrialist Narendra Raval is seeking to take over the collapsed Mumias Sugar in an ambitious bid to revitalize it. The steel billionaire says that his primary aim is not to make money, but to bring the moribund miller back to life.
“God has given me enough, let me bail out Mumias,” he was quoted recently by The Standard newspaper. Currently, Raval’s net worth is estimated to be more than $600 million (Sh. 65 billion).
Raval has offered a multi-billion package in a lease bid that could see him takeover ailing Mumias Sugar Company.
According to a report that appeared in a local daily on Monday, Raval has “unveiled a multi-billion shilling package that will see Sh. 4 billion used to upgrade the rundown production plant and Sh. 1 billion sweetener for farmers to return to cane production.”
The bid is part of a lease program that will see the successful bidder take over the company, and pay monthly fees to the Kenya Commercial Bank for up to fifteen years. This payment will be made to offset a Sh. 540 million debt that Mumias owes KCB.
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Additionally, dividends from the company will be used to settle other outstanding debts that are owed to Ecobank and French development agency Proparco. The firm owes Proparco Sh. 1.84 billion secured using the electricity generation plant, Ecobank Sh. 1.77 billion on the ethanol plant. Mumias is also said to owe the National Treasury billions. It also owes commercial banks NCBA and Stanbic Bank a substantial amount of money.