Narendra Raval Mumias: Steel tycoon Narendra 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.
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.
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In an interview, Raval told the daily that if successful, he will run Mumias for between 10 to 15 years. “Mumias would require a minimum of Sh. 4 billion for it to go back to where it was before. I am looking at putting Sh. 5 billion for it to start running again. I will pay the receiver manager the monthly dues and meet other expenses of running the plant and paying farmers for cane delivery. It is up to the receiver manager to decide on how to divide the money that I will pay them, in terms of paying the creditors,” Raval told the local business newspaper, Business Daily. Currently, Raval’s net worth is estimated to be more than $600 million (Sh. 65 billion).