Gov’t Gives Up Share in Sodere

Dinku deposited 31.5 million birr into the account of Ministry of Finance and Cooperation

Dinku Deyas, one of the most prominent businessman in Adama (Nazareth), and his family have fully taken over the management of Sodere Resorts Hotel S.C after buying the government’s remaining shares, worth 90 million Br.

The transfer was made on April 11, 2017 at the premises of the Ministry of Public Enterprises (MoPE), located in the Gerji area in front of Bob Marley Square. The transfer was made between Dinku and Meselech Wodajo, state minister for Corporate Finance & Administration at the Ministry.

Dinku paid 31.5 million Br for the acquisition, equivalent to 35pc of the total amount of shares. The money was deposited to the account of the Ministry of Finance & Cooperation.

“When we decided to transfer the shares, we approached the shareholders, and they responded to us with their interest of fully acquiring the resort,” Meselech told Fortune.

Sodere Resort Hotel is located 124Km from Addis Abeba and 27Km east of Adama. It has hot spring water which may reach 35 degree centigrade. Currently, Sodere has just over 100 rooms, two hotels, four swimming pools and three conference halls.

During the signing ceremony a debate was raised between the two parties on the exact amount of the government’s remaining shares.

The Resort, which was established in 1950, was fully managed by the government until 2010. When it was re-established in as a joint venture arrangement, with 280 million Br by DEK Oromia Business Investment Plc and the then-Ethiopian Privatization & Public Enterprise Supervising Agency (PPESA), now MoPE.

The PPESA had a 64 million Br share, equivalent to 17pc, with the rest belonging to DEK Oromia, a company established by Dinku, Kemer Yousuf, the prominent Oromic language singer and Elias Ebissa. Dinku was a major shareholder of DEK, owning 60pc of the company.

DEK does not currently exist as Kemer and Elias left the partnership because they cannot pay their share, according to Dinku.

The new owners of the company are Dinku, who has a share of 280 million Br, his spouse Lensa Paulos who has shares valued at one million Br, and Danse Gurmu who also has one million Br share.

“The government’s share in the resort was 64 million Br. But now, I am asked to pay 90 million Br considering they have 31.4pc shares,” claims Dinku.

The Ministry’s contribution to the hotel was in kind.

“After we audited the company we realized that our share is equivalent to 90 million Br or 31pc as the property appreciates through time,” says Meselech.

When the resort was established, it had a registered capital of 144.6 million Br. It has now reached 340 million Br, according to Dinku.

“We have notified all the concerned bodies that the buyers cannot present the resort as collateral to get loans from banks, and that they cannot sell the company until they have paid the remaining money,” Meselech told Fortune.

According to the agreement, the remaining 65pc of the money will be paid in five years’ time. But during the agreement signing ceremony the buyer promised to pay all of the money within a short time frame.

Currently, Dinku is working on the expansion project of the resort, at a cost of 600 million Br. An expansion at the former compound is in already in progress. The project will also undertake expansions in Bishoftu, Hora Arseda area, in Hawassa, at Tikur Wuha and in Gelan town, all of which are at different stages. When the expansion project is finalized the resort will have a total of 1,000 rooms, according to Dinku.

“We are working to bring the resort in line with international standards,” Dinku told Fortune.

Dinku and his family currently own Rift Valley University, Rift Valley University General Hospital, Oromia Broadcasting Service (OBS TV) and Nafyad School.




Published on Apr 14,2017 [ Vol 17 ,No 884]



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