The Kenyan Government through the Privatization Commission has sought proposals from financial advisors to advise on the Privatization of Kenya Wines Agencies Limited (KWAL).
The required scope of coverage of the Consultancy services includes; the need to review the financial performance, highlight key parameters and prepare projections necessary for the financial valuation of KWAL.
The Transaction Advisor is also expected to prepare a detailed work plan for the implementation of the transaction (Transactions Implementation Plan); prepare detailed financial restructuring plans, if considered necessary; undertake the necessary market research relating to the transaction and advise the client appropriately. The advisor is further expected to prepare an Option Analysis Report and implement the approved Privatization Strategy.
In 2014 the Commission sold a 26 per cent stake in Kenya Wine Agencies Ltd (KWAL) to South Africa’s Distell Group Ltd, Africa’s largest producer of spirits, wines, ciders and ready-to-drinks. In 2017 Distell increased its shareholding in KWAL to 52.43 per cent after acquiring an additional 26.4 per cent stake from Centum Investments.
KWAL is one of the few state-owned entities the government plans to put on sale. Other state run entities on the pipeline include Development Bank of Kenya, Tourism Finance Corporation (TFC) Hotels, Public Sector Owned/Controlled Sugar Companies, Consolidated Bank of Kenya, Kenya Ports Authority (KPA), Kenya Pipeline Company, Kenya Meat Commission and the New Kenya Co-operative Creameries (New KCC).