Following Governor Peter Mbah’s campaign promise to reactivate dormant state assets as part of efforts to grow the state’s economy from its current $4.4 billion to $30 billion, the Enugu State government has signed a N100 billion partnership deal with Pragmatic Palms Limited, a subsidiary of Diamond Stripes Limited to revitalise the moribund Enugu State United Palm Products Limited (UPPL).
According to a statement issued by the Senior Special Assistant (SSA) to the governor of External Relations, Uche Anichukwu, UPPL is one of the numerous initiatives of the former Premier of the defunct Eastern Region, the late Dr. Michael Okpara, which has remained dormant for decades.
Following the fact that Mbah’s administration is focused on agriculture and agro-industrialisation, Anichukwu noted that UPPL is one of the many moribund assets pencilled down for revitalisation.
He said that the state government is not going to be releasing any money to Pragmatic Palms. Instead, the company, a Special Purpose Vehicle (SPV) for the partnership, will finance the revitalisation of UPPL.
The statement said: “Pragmatic Palm will provide finance for 60 per cent of the transaction value, while the Enugu State government will provide the plantations valued as 40 per cent equity.
“Because several parties/investors are involved, it became imperative, as is the best international practice, to register an SPV as the platform to transact the deal. Pragmatic Palms was duly incorporated before the signing of the agreement.”
