By Emmanuel Nduka
Nigeria’s Vice President, Yemi Osinbajo, through the National Council on Privatization (NCP), has approved the delisting of three privatized enterprises from routine monitoring activities of the Bureau of Public Enterprises (BPE).
This was revealed by Ibeh Uzoma Chidi, Head, Public Communications, in a statement, noting that this is after they had fulfilled their covenants as identified in the Key Performance Indicators (KPIs) contained in the Share Sale and Purchase Agreement (SSAP) signed with the BPE.
The delisted companies are Federal Superphosphate Fertilizer Company (FSFC), Kaduna; Cement Company of Northern Nigeria (CCNN) Sokoto and Ikoyi Hotel (now Southern Sun) Lagos.
The statement adds that the delisting followed a request by the BPE to the NCP for approval at its maiden meeting for year 2022 which held for two days (Monday, January 31, 2022 and February 1, 2022) at the Presidential Villa, Abuja.
Further in its request, the Bureau noted that it had carried out a review of the enterprises in line with BPE’s mandate to manage post—privatisation issues of privatised public companies and was satisfied the core investors had ensured compliance with the covenants.
The BPE stated that it had developed standard processes and procedures for delisting privatised enterprises which all privatised enterprises are bound to comply with before being recommended for delisting.
In assessing the now delisted enterprises, BPE said it reviewed all the data submitted by the Core Investors in Line with their KPIs as indicated in the SSPA and followed up with an on-the spot assessment of the companies to validate the data submitted which showed excellent performance.
It would be recalled that FSFC was incorporated in September 1973 with an installed capacity of 100,000 metric tons per annum and later privatized in 2005. It was subsequently handed over to the Core Investor, Messrs HEIKO Consortium in January 2006.
Whereas, the Ikoyi Hotels also called Nigerian Hotels Limited, was established in 1932 and owned 100% percent by the Nigerian Government, was privatized through Assets Sale to BETA Consortium Limited with a bid price of $13,867,000.000 and handed to the investor in 2003.
Also, the Cement Company of Northern Nigeria Plc (CCNN), Sokoto was commissioned in 1967 with the Federal Government owning 45% shares of the Company.
Then in 2000, the Nigerian Government shares were divested through a strategic Core Investor sale/Initial Public Offer. During its privatization, an already existing shareholder and technical partner to CCNN, ScanCem/Dammnaz International Limited emerged as the core investor of the company.
Subsequently in 2010, the company was acquired by BUA international.