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PHCN successor companies: Investors must make full payments before takeover – BPE

By on May 27, 2013

The Bureau for Public Enterprise has said investors bidding for the Power Holding Company of Nigeria successor companies will only be allowed to takeover the companies upon 100 per cent payment of their bid consideration.

This was contained in a statement signed by BPE’s Head, Public Communications, Chigbo Anichebe.

The agency debunked the rumours that there was a secret handover of PHCN successor companies to the investors who had not completed the outstanding 75 per cent payment of their respective bid considerations.

It stated that the successor companies would be formally handed over to the bidders after full
payment, at a ceremony which would herald the takeover of the companies by the private sector.

The statement by Anichebe said: “We will like to put on record the fact that the National Council on Privatisation has approved the constitution of Transition Committees for the 15 Power Holding Company of Nigeria (PHCN) successor companies for which preferred bidders have paid up 25 per cent of the bid value.

“The terms of reference for the transition committees, as already publicised by government, are as follows:

“To facilitate the smooth transition of the management and operational control of the successor companies to the purchasers.

“To allow purchasers to access to the companies in order to prepare for the implementation of their business plans laid out in their proposals submitted to the Bureau of Public Enterprises.

“To provide a forum for the purchaser to engage with existing management and employees.

“To allow BPE and the purchasers to monitor the on-going operations of the company to ensure they are operating in an efficient manner and in compliance with the terms of the Share Sale Agreements.”

The Director-General of the BPE, Benjamin Dikki, said all the stakeholders had a mutual interest to ensure that the companies operate in a way that would maintain their value during the transition period.
Dikki reiterated that the transition period could be several months and that transitional arrangements would provide a platform to ensure that the companies and the purchasers are ready for the hand-over.

He noted that both management and staff of all PHCN successor companies and all key stakeholders in the sector had been properly briefed on the transition committees’ operational
modalities.

The Share Sale Agreements were executed between the preferred bidders and the BPE on February 21.