FG begins further divestment from Transcorp

FG begins further divestment from Transcorp

FRIDAY, 23 APRIL 2010 01:16 BADEJO ADEMUYIWA


The Federal Government is set to further divest from NIRMSCO Properties Limited (owners of Transcorp Hilton Hotel Abuja) following the emergence of Lead Capital Markets Limited Consortium as the transaction advisers for the Initial Public Offering (IPO) through which 24 of the remaining 49 percent equities will be offloaded.


Government’s 51 percent equity in Transcorp Hilton was sold via core investor sale in 2005 to Capital Consortium/Transnational Corporation plc while the remaining 49 percent was scheduled to be divested later through IPO. Lead Capital having garnered 92.58 points beat other bidders, including FCMB Capital Markets Limited Consortium, which came second with 69.13 points, FBN Capital Markets Limited Consortium which came third with 58.90 points and Chapel Hill Management Consortium, fourth, with 54.44points.


The Bureau of Public Enterprises (BPE) announced the results at the end of the financial bid opening for the selection of transaction advisers for NIRMSCO in Abuja on Wednesday. Bolanle Onagoruwa, acting director general, BPE, at the bid opening scored Transcorp Hilton Hotel, Abuja, high in the hospitality industry, saying the hotel is one of the few in the industry that distributes profit to shareholders on quarterly basis.


“During the last five years, the company has performed well in the competitive hospitality industry in Nigeria and available statistics to us indicate that its current performance is above industry average”, she stated. Onagoruwa said with its performance, the National Council on Privatisation (NCP) through the BPE decided to divest 24 percent out of the outstanding FGN’s 49 percent equity in the company to the general public through an initial public offering of its shares.


She said as further incentive to staff of the company, 10 percent of the shares on offer would be preferentially allotted to them, stressing that in line with BPE’s tradition, the financial bids opening would be transparent. The acting DG charged the successful advisory firm to show a high level of diligence, accountability and transparency throughout the duration of the transaction process.

(Source:BusinessDay)


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