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BPE frees 3 privatised firms from its monitoring activities

The National Council on Privatisation (NCP) has approved the delisting of three privatised enterprises from routine monitoring activities of the Bureau of Public Enterprises (BPE).

This was disclosed in a statement issued on Sunday in Abuja, by Ibeh Chidi, Head, Public Communications of the BPE.

According to him, the said companies are Federal Superphosphate Fertiliser Company (FSFC), Kaduna, Cement Company of Northern Nigeria (CCNN) Sokoto and Ikoyi Hotel (now Southern Sun) Lagos.

He said that the companies were delisted after they fulfilled their covenants as identified in the Key Performance Indicators (KPIs) contained in the Share Sale and Purchase Agreement (SSAP) signed with the BPE.

“Their delisting followed a request by the BPE to the NCP for approval at its maiden meeting for year 2022.

“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 were bound to comply with before being recommended for delisting.”

Chidi said that 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.

It also followed up with an on-the spot assessment of the companies to validate the data submitted which showed excellent performance.

The statement 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, however, handed over to the core investor, Messrs HEIKO Consortium in January 2006.

He said that Ikoyi Hotel was established in 1932 and owned 100 per cent by the Federal Government.

“It was privatised through assets sale to BETA Consortium Limited with a bid price of 13.86 million dollars and handed to the investor in 2003.

“CCNN, Sokoto was commissioned in 1967 with the Federal Government owning 45 per cent 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.”

He added that in 2010, the company was acquired by BUA international.

The bureau said that the delisted enterprise would be presented with their discharge certificates later.

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