JTI seals deal to acquire a stake in NTE for more than half a billion dollar
On May 19, 2016, Japan Tobacco International (JTI), the world`s third largest tobacco company, had succeeded in the public tender for a 40pc stake in Ethiopia`s tobacco monopoly company National Tobacco Enterprise (NTE) by offering a purchase price of 520 million dollar for NTE`s shares. There was strong international interest in the acquisition and five bids were officially submitted, including the other global players British American Tobacco, known for brands such as Lucky Strike, Rothmans and Dunhill; Phillip Morris International, known for Marlboro; as well as a Chinese company—China Logistics Company Ltd.
As reported by Ethiopian TV , The Reporter and Ethiopia`s leading newspaper Addis Fortune and Addisbiz today, after more than 2 months of intense negotiations between the government and JTI which took place in strict confidence in the offices of the Ministry of Public Enterprises and the Sheraton Hotel in Addis to agree on the terms and conditions, the contracts for the acquisition of the shares were signed on July 15, 2016 by Her Excellency, Minister Demitu Hambissa and Dr.Martin-Ralph Frauendorfer, Vice President Legal and Francois Fidanza, Vice President Business Development, in presence of the Japanese ambassador to Ethiopia as well as other officials from both sides. On December 21, 2017 as reported by news portal Allafrica the second tranche of the transaction was signed under which the government transferred another 30pc of its shares for a purchase price of of 434 million dollar, making JTI the controlling owner of NTE with 70pc shareholding.
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