The National Council on Privatisation (NCP), chaired by the Vice President Yemi Osinbajo has approved the delisting of three privatised enterprises from routine monitoring activities of the Bureau of Public Enterprises (BPE).
This follows the fulfilment of their Key Performance Indicators (KPIs) contained in the Share Sale and Purchase Agreement (SSAP) signed with the BPE, according to a statement yesterday.
The companies are Federal superphosphate Fertilizer Company (FSFC), Kaduna; Cement Company of Northern Nigeria (CCNN) Sokoto; and Ikoyi Hotel (now Southern Sun) Lagos.
Their delisting is sequel to a request by the BPE to the NCP for approval at its maiden meeting for year 2022 which held for two days (January 31, and February 1, 2022) at the Presidential Villa, Aso Rock, Abuja.
The delisted enterprise will be presented with their discharge certificate later, the BPA added in its statement.
In its request, the Bureau noted that it had carried out a review of the enterprises in line with its mandate to manage post-privatisation issues of the public companies and was satisfied the core investors had ensured compliance with the covenants.
Their delisting follows the fulfilment of their Key Performance Indicators (KPIs) contained in the Share Sale and Purchase Agreement (SSAP) signed with the BPE.
BPE also said 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.
Recall 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.
While Ikoyi Hotel also called Nigerian Hotels Limited was established in 1932, and owned 100% 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 CCNN Sokoto was inaugurated in 1967 with the Federal Government owning 45% shares of the Company.
In 2000 the 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.
