Mavis Bank deal expected by May

Milverton Reynolds, managing director of the Development Bank of Jamaica, says his agency has cleared scrutiny of government-procurement watchdog and is now just weeks away from finalising negotiations for the sale of Mavis Bank Coffee Factory.

The development bank is selling its 70 per cent stake in the company to a consortium comprising Jamaica Producers Group Limited and Pan-Jamaican Investment Trust Limited.

The other 30 per cent is owned by the Munn family, who also handle marketing of the coffee through an overseas company known as Blue Mountain Coffee Incorporated.

Reynolds said the Office of Contractor General not only approved the method used to select the preferred investors after four months of scrutinising bids, but also commended the agency for "discharging its responsibilities with a high level of diligence and due care".

Bids were evaluated on price, a comprehensive business plan, and a development plan for the assets inclusive of technology to be deployed.

With assets of US$20 million, estimates of annual revenue for Mavis Bank Coffee, which sits on 12 acres of land at the foothills of the Blue Mountains, range from US$8 million to US$11.6 million, although sales have been affected by falling demand in primary market, Japan.

The company, run by Senator Norman Grant, buys from some 6,000 farmers and processes about 1.4 million pounds of green beans annually.

It markets its processed beans and instant coffee under the Jablum brand.

Reynolds told the Financial Gleaner that the negotiations with the Producers/Pan Jamaican buyers were ongoing but should be finalised in May.

"Clearly, we can't say anything at this stage for obvious reasons," he said, in reference to the terms being negotiated.

austanny@yahoo.com