Daily Independent Online.
*
Thursday, July 08, 2004.
NCP amends payment rules for Folio on Daily Times
Sanya Adejokun,
Senior
Correspondent,
Abuja
The National
Council on Privatisation (NCP) has amended the standard payment mode for privatised
public enterprises on the sale of Daily Times of Nigeria (DTN) to Folio
Communications Limited.
Rather than the
compulsory payment of 10 percent as deposit as is generally the case during
transactions, the NCP waived this, allowing the Chidi Amuta-led company to pay
the N1.2 billion en-block by the end of July 2004.
Ordinarily, Folio
ought to have paid N120 million of the total sum before the close of work last
Friday.
Folio
Communications Limited on June 14th emerged the preferred bidders for the ailing
oldest newspaper in the country, which was established in 1926 during a
ceremony at the NICON Hilton Hotel, Abuja.
The company
defeated Mindspring Communications limited, the special purpose vehicle of the
present Daily Times management to also acquire the company.
But Mr. Charles
Odenigbo, BPE Head of Marketing and Communications told Daily Independent that
it was not in every situation that companies are required to pay the 10%
deposit for enterprises that they are purchasing.
According to him,
Folio has been given a deadline of July 31st to fully pay the price it offered
for the media house.
Sources confirmed
that those behind Folio have since left the country in a frantic search for
funds to pay the N1.2 billion ($410 million).
An NCP source hinted that the company
stands to loose the N100 million bid bond, which it deposited before being
allowed to take part in the bidding should it fail to pay the agreed sum by the
expiration of the July ending deadline.
