Mali’s SOTELMA set for privatisation in 2008, delayed from 2006

Mergers, Acquisitions and Financial Results

The privatisation of Sotelma that was supposed to have happened in 2006 has now been scheduled for 2008. However as reported last week, the company lost FCFA12 billion to the year end of 2006.

However, Sotelma has now selected a bank of “international standard” to conduct the process and put the son of the former Senegalese President Abdou Diouf in charge of the process. His task is to produce a series of reports that will inform the privatisation process including one on the company’s strategic orientation, another evaluating its performance and specifications for the process. He is also in charge of finding a strategic partner.

According to Sotelma’s DG Lassane Ndiaye, the company will be profitable by year end 2007. Provisional results up to 30 June 2007 do not auger well for this predicted outcome. The June results only hit 45% of the income target.

(source: Altervision)