Government Seals Sheraton Hotel Deal

Mar 08, 2001

THE Sheraton Kampala Hotel sale was sealed yesterday after the Government signed an agreement with the Saudi-owned Midroc, which bought 100% shares in the hotel at US$18m.

By Yunusu Abbey THE Sheraton Kampala Hotel sale was sealed yesterday after the Government signed an agreement with the Saudi-owned Midroc, which bought 100% shares in the hotel at US$18m. Mr. Gerald Ssendaula, the finance minister, signed the deal on the government's behalf, while Mr. Vijay Vijeyakumaar and Dr. Joseph Byamugisha, a Kampala lawyer, endorsed it for Midroc. At exactly 11.02a.m, Ssendaula handed over copies of the agreements to Vijay, ending the hotel divestiture which has dragged on since 1998. Vijay, a Sri Lankan holding an Australian passport, was recently appointed Midroc Africa's new chief executive. The Sheraton Kampala Hotel will be under his jurisdiction. He said he had now resigned from the Sheraton Group where he worked for 22 years. Until recently, Vijay, based in Nairobi, has been Sheraton Hotels and Resorts Worldwide's finance director for Eastern and Southern Africa. Speaking after the signing, Ssendaula said Midroc had fully paid the US$18m it had pledged to buy the 100% government shares. "This divestiture is a landmark in the development of the hotel industry in Uganda," he said. The out-going Apolo Hotel Corporation board members, led by the chairperson, Ms. Fatuma Nsereko, Michael Opagi, the Privatisation Unit boss, and top Sheraton Kampala Hotel officials witnessed the signing ceremony. Ends

(adsbygoogle = window.adsbygoogle || []).push({});