JTI Ethiopia bid up in the air

Japan Tobacco International, which made a US$510 million offer to buy a 40 percent stake in Ethiopia’s state-run National Tobacco Enterprise (NTE), has reportedly failed to pay the money by the June 8 deadline, according to an Addis Fortune story relayed by the TMA.

Reportedly, the failure could result in the forfeiture of the bid bond or even lead to the advantage being transferred to British American Tobacco, which made the next highest bid of US$230 million.

An unnamed source familiar with the deal was said to have noted that JTI came up with new demands on the asset valuation of NTE.

But another source said that, considering the size of the offer made by JTI, the ministry was unable to make a decision immediately.

JTI said that the company was still in a ‘constructive and positive dialogue’ with the Ministry of Public Enterprise.

The tender attracted a number of international companies, including Philip Morris International, which put in the lowest bid of US$120 million, slightly above the minimum valuation estimate.