Singaporean firm acquires 66% stake in Magerwa

A Singaporean firm Portek International, has acquired a stake in the National Bonded warehouse, Magerwa, and promised to invest US$10m to expand its supply chain in the region, a top official said. Portek is expected to upgrade the handling and warehousing industry, diversify and add value to Magerwa’s business as well as improve revenue trend that was miserably dropping, Lambart Nyoni, the Managing Director of Magerwa told Business Times in an interview. He said the Singaporean company will buy 6.25 percent of government stake in Magerwa as well as 53 and 6.25 percent owned by Rwanda Development Bank (BRD) and Rwanda Commercial Bank (BRD) respectively. “They expressed enthusiasm and need to acquire more than 60 percent shares in Magerwa, be the majority shareholder and quickly enter into its management,” Nyoni said. Jack Kanyonga, the Managing Director of BRD also confirmed the developments, saying that negotiations would be concluded by the end of this month. “We have already signed with Portek to buy our 53.75 percent shares in Magerwa, the valuation was done by competent people (KPMG) and agreed on the price,” he said as he declined to reveal the price because the buyer is not a public company. According to Nyoni, Portek is expected to invest about US$10 million to revamp the present situation in Magerwa and diversify Rwanda’s warehousing industry. “The parking yard is too old and the equipment is not modern, they intend to refurbish the warehouse and also diversify our services,” he said. Magerwa, a public warehouse was established in 1969 to address revenue leakage through collection of import and export taxes and duties. Magerwa enjoyed monopoly in the handling and warehousing industry until 2008 following the entry of French logistics company, SDV TRANSAMI. “Magerwa could not cope with the global policy of trade facilitation and information system management that called for high quality services at low costs,” Nyoni explained. According to information obtained by Business Times, Portek has experience in port equipment modernisation, modification, maintenance, equipment leasing and sale, accident recovery and repairs, consultancy services, and distribution of components and parts. The company has seven container and multipurpose terminals operating, in Indonesia, Algeria, Malta and Gabon. Ends

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Singaporean firm acquires 66% stake in Magerwa