Sameer Seeks To Buy Uganda's Top Dairy

By Allan Rotich Posted 06 April 2006 @ 10:41 am EET     Print     Reprint     E-Mail     Comments

Nairobi (IBTimes.com) - The Sameer Group plans to spread its tentacles in the East African region, with media reports in Uganda suggesting the company was poised to take over the government-owned milk processing monopoly.

It also comes days after Dimension Data Holdings, the biggest computer-services company in Africa, said it had bought 51 per cent of Sameer's ICL East Africa.

Sameer Group is associated with businessman Naushad Merali, said to be out of the country. However, the move would complement its dairy operations under listed Sasini Tea and Coffee, which carries out breeding operations.

Last year, this activity generated Sh4.7 million for the company, which chalked up losses on account of a strong shilling effect on export earnings.

The company plans to list its Ugandan subsidiary, tyre maker Sameer Africa Uganda Limited. Sameer Africa managing director, Eric Kimani, said the move would fast-track the regional economic integration, and offer East Africans more investment options.

Uganda has a low milk processing capacity compared to Kenya, and presents a rich picking for Sameer. Most of the milk there is consumed raw.

"The Board of DCL has been informed of the government decision on Sameer Group. The Board does not have any other information [and] has sought for information from the government on the matter and we are waiting for a response to enable us do our work," said a board spokesman in a written statement to Daily Monitor, a sister publication of the Nation Media Group, which owns this newspaper.

The Monitor said details were scanty, but revealed that unlike in the past when Uganda's Privatisation Unit (PU) - in charge of the country's divestiture programme - was responsible for negotiations, this time, following a Cabinet decision in favour of Sameer, the Kenyan company will sign a deal directly with the board of Dairy Corporation. engineering and IT.

When contacted for comment, the Director of PU, Mr Michael Opagi, confirmed Cabinet's involvement, but referred the Monitor to Prof Peter Kasenene, the Privatisation minister.