Privatization under way-Independent Transaction Advisors appointed |14 October 2005

The department has also announced the appointment of two independent Transaction Advisors, now on site at both parastatals, to implement the first phase of the privatization process. 

After evaluating proposals from various Transaction Advisors both locally and from overseas, the Privatization Unit of the Department of Finance appointed BDO De Chazal Du Mée, a company based in Mauritius, as the Transaction Advisor in the privatisation of Sacos and Ernst & Young, an international accounting and consultancy company with a local branch, as the Transaction Advisor in the privatisation of the SMB Hydroponics Unit.

A communiqué from the Department of Finance says that the independent Transaction Advisors will be providing the proficient and necessary advisory services to the Government of Seychelles to effectively implement the privatization programme.  
 
The communiqué explains that the operations will be done in three main phases:  The initial phase will restructure the public enterprise prior to its transformation into a private company. 

The subsequent valuation phase will consist of valuation of assets.  The Transaction Advisors will define the privatisation strategy, the employee share scheme and prepare prospectuses in the final phase which will be the sale of shares. 

The sale of shares will be done based on the recommendations made by the independent Transaction Advisors. Tender procedures will be administered by the National Tender Board to ensure fairness and transparency.

According to the present programme of the Transaction Advisors, the privatisation of both SMB Hydroponics and Sacos is expected to be completed by the end of January 2006. 

The duration of each phase and progression onto the next will depend on the recommendations of the Transaction Advisors.  

The appointment of independent Transaction Advisors is in line with the promise made by the Government to ensure that the privatization process is done in a fair and transparent manner guided by standards set by international organisations such as the World Bank and IMF.