BPE To Exempt Three Firms From Post-Privatisation Monitoring

The National Council on Privatisation (NCP), chaired by Vice-President Yemi Osinbajo, has approved the exemption of three privatised enterprises from routine post-privatisation monitoring activities of the Bureau of Public Enterprises (BPE).

They include Federal Superphosphate Fertiliser Company (FSFC), Kaduna; Cement Company of Northern Nigeria (CCNN), Sokoto and Ikoyi Hotel (now Southern Sun), Lagos.

In a statement, BPE’s Head, Public Communications, Ibeh Uzoma Chidi, said the exemption followed the firms’ ability to fulfil their covenants as identified in the Key Performance Indicators (KPIs) contained in the Share Sale and Purchase Agreement (SSAP) signed with the BPE.

The BPE had sought for NCP’s approval to exempt the companies during the council’s recent meeting at the Presidential Villa, Aso Rock, Abuja.

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.

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.

FSFC was incorporated in September 1973 with an installed capacity of 100,000 metric tonnes per annum and privatised in 2005.

It was handed over to the core investor, Messrs HEIKO Consortium, in January 2006, while Ikoyi Hotel, also called Nigerian Hotels Limited, which was established in 1932 and owned 100 per cent per by the federal government, was privatised through Assets Sale to BETA Consortium Limited with a bid price of $13,867,000.000 and handed over to the investor in 2003.

The Cement Company of Northern Nigeria Plc (CCNN), Sokoto was inaugurated in 1967 with the federal government owning 45% shares of the company.

In 2000, the federal government 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 delisted enterprises will be presented with their discharge certificate later.