Midroc Pays Up For The Sheraton

THE Saudi-owned Midroc has paid the US$18m for the Sheraton Kampala Hotel, ending the company's three-year protracted effort to buy the 250-room hotel, reports Yunusu Abbey. State minister for privatisation Manzi Tumubweine told The New Vision yesterday that Midroc had already deposited the money on the Privatisation Unit account in Uganda Commercial Bank. Tumbweine said the funds were deposited on the UCB account on Tuesday. He did not elaborate. The grace period the Government granted to Midroc on February 5 within which to pay for the 100% shares, expired yesterday. "Everything is done and the deal has been sealed. We are just waiting for Mr. Vijay to come and sign the necessary documents," said a top Sheraton Hotel official. Vijay Vijeyakumaar, who is handling the deal for Midroc, was due to arrive in Kampala yesterday to finalise the deal. He is expected to sign the sale agreement and secure the land title from the Government, among others. Midroc, Muhammad Investment Development Research Organisation Company, belongs to a Saudi tycoon, Sheikh Muhammad Al-Amoudi. He owns the posh Addis and Djibouti Sheraton hotels as well as the Jeddah Inter-Continental Hotel. Al-Amoudi has an oil refinery and other business ventures. In May last year, Sheikh Al-Amoudi granted Vijay the power of attorney to handle the Sheraton Hotel purchase on behalf of Midroc. Observers say this would be the biggest investment by a Saudi firm in Uganda since President Museveni came to power in 1986. It is also likely to attract more Saudi investors. Under its programme, Midroc would sign a management contract with the Sheraton to run the hotel and invest about US$19m in its renovation. Midroc promised to uplift the hotel to better international standards and improve on its services among others. Since 1998, Midroc has made fruitless efforts to buy the Sheraton Kampala Hotel. At one time, Midroc forfeited a US$2m bid bond it had deposited with the Privatisation Unit after failing to pay a US$17m balance for the then 80% shares it had wanted to acquire in the hotel. In the recent tender, it offered US$18m for the 100% shares in Apolo Hotel Corporation that owns the Sheraton Hotel and a block of flats. During the bid opening on October 27, 2000, Midroc remained the sole bidder after the other companies pulled out of the deal for unclear reasons. Ends