Even as government continues to function in caretaker mode with the results of the March 2nd elections still to be declared, the state’s holding company, the National Industrial and Commercial Investments Limited (NICIL), continues to pursue investments and even entered into an agreement in relation to energy generation at the Skeldon Estate earlier this month.
Last week, NICIL’s evaluator for the assets of the Guyana Sugar Corporation (GuySuCo) and privatisation consultant, international accounting firm PricewaterhouseCoopers (PwC), wrote to David M. Mahmalji, the Managing Director of MHM Holdings Inc, regarding the company’s expressed interest in the Skeldon and Enmore Estates, according to correspondence seen by the Stabroek News. NICIL had set up a Special Purpose Unit (SPU) to oversee the divestment of sugar industry assets.
“We thank you for your Expression of Interest dated 27 May 2020 and we apologise for the delay in responding. We have forwarded same to our Client, National Industrial and Commercial Investment Limited, NICIL for their perusal,” PwC’s Managing Director, South Cluster Deals, Wilfred Baghaloo wrote the company.
“As explained, we started the privatisation of Skeldon Energy Inc on 22nd August 2019 and received proposals from several interested parties. A preferred bidder was selected and invited to make a presentation to the Steering Committee which took place on 12th February 2020. Since then, we have commenced negotiations and executed a Heads of Agreement dated 3rd June 2020 with an exclusivity period of three (3) month ending 1st September,” he said.
Since NICIL took over the divestment and privatisation of assets for GuySuCo, none of its deals have been made public with the sugar corporation repeatedly bemoaning that it was “in the dark” as it pertains to deals made.
PwC was chosen by the SPU in December 2018 from a field of the top four international financial services providers. NICIL and PwC signed the valuation in January of 2018 and work began then.
Evaluations were completed and PwC submitted its recommendation of prospective buyer to the NICIL Steering Committee. The Steering Committee was charged with giving the information to government for Cabinet to make a final decision.
However, Cabinet was dissolved following the 21st December 2018 no-confidence motion and before the March 2nd elections government had also affirmed the dissolution.
It is unclear why two months after the elections and as the country await the results, which shows the PPP/C getting more votes than the incumbent APNU+AFC, deals were still being brokered.
PwC’s letter indicates that discussions are still being done and an agreement signed this month.
“Nevertheless, we gave you and your team access to the data room on 5th May 2020 and are prepared to share any proposal(s) you provide with our client, NICIL, for their consideration,” the letter to MHM Holdings said.
“As it relates to Enmore Sugar Estate, we have received several bids and have not selected a preferred bidder. We would be more than happy to receive your proposal(s) and commence discussions immediately on the receival of same,” it added.
