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FG delists three firms from BPE’s monitoring activities

By Joseph Chibueze, Abuja
10 February 2022   |   2:46 am
The Federal Government has certified three privatised firms free from routine monitoring activities of the Bureau of Public Enterprises (BPE).

Bureau of Public Enterprises

The Federal Government has certified three privatised firms free from routine monitoring activities of the Bureau of Public Enterprises (BPE). 
   
The companies include Federal Superphosphate Fertiliser Company (FSFC), Kaduna; Cement Company of Northern Nigeria (CCNN), Sokoto and Ikoyi Hotel (now Southern Sun) Lagos.

The National Council on Privatisation (NCP) at its maiden meeting for 2022 approved the delisting of the companies from monitoring as requested by BPE.
  
BPE in the request had noted that the companies 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.
   
In its request, according to a statement by Head, Public Communications of BPE, Ibeh Uzoma Chidi, in Abuja, 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.

   
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 privatised in 2005. It was handed over to the Core Investor, Messrs HEIKO Consortium in January 2006.
   
Ikoyi Hotel, also called Nigerian Hotels Limited, was established in 1932 and owned 100 per cent by the Federal Government, was privatised through assets sale to BETA Consortium Limited with a bid price of $13,867,000.000 and handed to the investor in 2003.
   
The Cement Company of Northern Nigeria Plc (CCNN), Sokoto was commissioned in 1967 with the Federal Government owning 45 per cent shares of the Company. In 2000, the Federal government’s shares were divested through a strategic core investor sale/initial public offer. During its privatisation, an already existing shareholder and technical partner to CCNN, ScanCem/Dammnaz International Limited emerged as the core investor of the company. In 2010, the company was acquired by BUA international.
  
The statement said the delisted enterprise will be presented with their discharge certificate later.

 

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