Mozambique’s Nadhari fails to acquire Portuguese company Opway

17 February 2015

Espírito Santo Industrial (ESI) plans to hold a new auction for the sale of construction company Opway after Mozambique’s Nadhari failed to provide evidence of funding by last Monday, Portuguese financial daily Jornal de Negócios reported.

The rules of the first auction stipulated that if this guarantee was not provided on time, the sale of Opway shares would be awarded to the second highest bid, which was presented by the construction company’s previous management team.

Nadhari won the first auction by submitting a proposal for 5 million euros, and the management team offered 1.25 million euros and Prebuild offered 1.2 million euros.

The newspaper reported that ESI decided to hold a second auction on the understanding that both the management team and Prebuild would be able to offer a higher price for the purchase of Opway than they had initially.

Opway, which was founded in 2008, following the acquisition of Sociedade Geral de Construções e Obras Públicas (Sopol) by Obras Públicas e Cimento Armado (OPCA), has debt of 160 million euros, and Portuguese state bank Caixa Geral de Depósitos (CGD) is the main creditor. (macauhub/MZ/PT)