…says unable to find model for estate to fit current investment strategy

DEMERARA Distillers Limited (DDL) on Friday announced that after much deliberation, it has decided not to submit a bid for the Enmore Sugar Estate at this time.

The company’s statement comes one day after the Special Purpose Unit (SPU) of the National Industrial & Commercial Investments Limited (NICIL) announced that the tender for the sugar estates, under a process managed by PricewaterhouseCoopers (PwC), was closed on October 31, 2018.

There was an expectation that DDL would have tendered for the Enmore Estate; and in fact, DDL invested considerable time and financial resources in a due-diligence process to determine the level of investment required to turn around the Enmore Estate, DDL said in a statement.

“As a responsible corporate citizen, DDL was clearly interested in the preservation of the sugar industry in Guyana, because it is deeply rooted in who we are as a nation and as a people. Moreover, the sugar industry is seen as inextricably linked to DDL’s rums, for which the value of participating in the industry’s survival is crucial to preserving those links.”

According to DDL, its interest in Enmore is driven primarily by its need for molasses for its core business as a distillery; it noted that the shortfall in molasses experienced after the closure of three GuySuCo estates, had severely impacted DDL’s ability to meet its commitments to local and foreign customers.

“However, in its due- diligence exercise, DDL was unable to find a model for the Enmore Estate that would properly fit within its current investment and development strategy. Nevertheless, DDL remains committed to participate, should the opportunity becomes available in the future,” the statement added.

Moreover, in a comment, DDL Chairman Komal Samaroo is quoted as saying that “we respect the process being conducted by the SPU and PwC; and will continue to pay keen interest in those developments and outcomes.” Samaroo added that, “if the estate is sold, we will quickly engage the new owners to ensure that we secure supplies of molasses for our distillery. Should the estate remain unsold, we would equally re-engage to determine if there is a model that works for our shareholders.”