South Africa’s Department of Public Enterprises (DPE) is proceeding with the privatisation of Komatiland Forests Limited, a wholly owned subsidiary of the South African Forestry Company Limited (Safcol).

Last Friday was the deadline for the submission of expressions of interest for a major stake of Komatiland.

The DPE says it is unclear at this stage how many bids were received, but documentation would be sent to bidders by the end of the week. They will then be given a month to submit non-binding expressions of interest.

As part of government’s large-scale privatisation programme, a majority interest, comprising 75% of the shares in and claims against Komatiland, is being offered for sale.

Komatiland includes approximately 130 000 ha of forestry plantations, mainly in the Mpumalanga and Limpopo Provinces, two saw mills, a veneer slicing plant and an export facility.

This is the government’s second attempt to privatise Komatiland, following the cancellation of the process last July, as allegations of corruption surrounding the process surfaced.

South Africa is on a privatisation drive to attract foreign investors to the country in an exercise expected to net about R40-billion by the end of 2004 and the department hopes to see the Komatiland deal finalised by April or May.

Zama Resources, which was at the centre of last year’s debacle, was subsequently cleared, following an investigation, and was expected to bid again. It is also believed that local forestry firm Yorkcor, as well as Calcutta-based company, Paharpur would submit bids.

“One of the objectives of government in this sale process is the advancement of black economic empowerment (BEE). Parties wishing to bid will, therefore, be required to form a consortium with a BEE partner to the extent that the bidder is not a BEE entity,” explains the DPE.

In the bid process, the 75% shares and claims offered will be split into a maximum of 65% to be held by the majority bidding partner and a minimum of 10% by their BEE partner. A BEE entity may bid for the total 75% shares and claims.

During the current fiscal year, which ends in March this year, privatisation receipts are expected to come in at R12-billion – with at least R10-billion from the listing of telecoms group Telkom.

Although the focus has been on the so-called big four – Telkom, arms group Denel, power utility Eskom and transport group Transnet – other transaction are taking place on the sidelines, including Safcol.

South Africa’s Department of Public Enterprises (DPE) is proceeding with the privatisation of Komtiland Forests Limited, a wholly owned subsidiary of the South African Forestry Company Limited (Safcol).

Last Friday was the deadline for the submission of expressions of interest for a major stake of Komatiland.

The DPE says it is unclear at this stage how many bids were received, but documentation would be sent to bidders by the end of the week. They will then be given a month to submit non-binding expressions of interest.

As part of government’s large-scale privatisation programme, a majority interest, comprising 75% of the shares in and claims against Komatiland, is being offered for sale.

Komatiland includes approximately 130 000 ha of forestry plantations, mainly in the Mpumalanga and Limpopo Provinces, two saw mills, a veneer slicing plant and an export facility.

This is the government’s second attempt to privatise Komatiland, following the cancellation of the process last July, as allegations of corruption surrounding the process surfaced.

South Africa is on a privatisation drive to attract foreign investors to the country in an exercise expected to net about R40-billion by the end of 2004 and the department hopes to see the Komatiland deal finalised by April or May.

Zama Resources, which was at the centre of last year’s debacle, was subsequently cleared, following an investigation, and was expected to bid again. It is also believed that local forestry firm Yorkcor, as well as Calcutta-based company, Paharpur would submit bids.

“One of the objectives of government in this sale process is the advancement of black economic empowerment (BEE). Parties wishing to bid will, therefore, be required to form a consortium with a BEE partner to the extent that the bidder is not a BEE entity,” explains the DPE.

In the bid process, the 75% shares and claims offered will be split into a maximum of 65% to be held by the majority bidding partner and a minimum of 10% by their BEE partner. A BEE entity may bid for the total 75% shares and claims.

During the current fiscal year, which ends in March this year, privatisation receipts are expected to come in at R12-billion – with at least R10-billion from the listing of telecoms group Telkom.

Although the focus has been on the so-called big four – Telkom, arms group Denel, power utility Eskom and transport group Transnet – other transaction are taking place on the sidelines, including Safcol.

With acknowledgements to Egineering News and Martin Czernowalow.