Folio Communications pays N1.25b for Daily Times
From Mathias Okwe (Abuja)
FOLIO Communications Ltd. yesterday paid up the bid price of N1.25 billion for the Federal Government's 77.5 per cent equity share in Nigeria's oldest but ailing newspaper conglomerate, The Daily Times.
A statement last night by Mr. Charles Odenigbo, Head of Communications at the Bureau of Public Enterprises (BPE) disclosed that Mr. Fidelis Anosike of Folio Communications presented the cheque at a brief but remarkable event at the BPE secretariat in Abuja.
He added that Folio reassured of its determination to turn the fortunes of the ailing company around.
It would be recalled that following its successful bid last June 14, Folio, which beat Mindspring Communications to emerge winner, promised to commit the sum of N800 million to the revitalisation of the Daily Times of Nigeria (DTN).
In July 2003, the National Council on Privatisation (NCP) advertised for the expressions of interest from potential core investors wishing to acquire the 77.5 per cent Federal Government's holdings in DTN.
At the close of advertisement for the expressions of interest, six firms indicated interest.
They included Management Forum, Mayoral Ltd, Folio Communications Ltd., Mindspring Communications Ltd, Rotraina Company Ltd, Johnnic Communications Ltd of South Africa and Patike Communications Ltd.
After evaluation by BPE, the firms were pre-qualified to proceed to the due diligence stage.
However, Johnnic Communications Ltd and Patike Communications sought and got BPE's permission to merge to form the Patike Communications-Johnnic Consortium, with Johnnic serving as the technical partners in the consortium.
The NCP had a rethink on the quantum of shares to be sold to a core investor and increased the percentage of the Federal Government's equity interest on offer from 51 per cent to 96.05 per cent.
The NCP Technical Committee chairman, Mr. Akin Kekere-Ekun, at the bids opening revealed that the five firms conducted the due diligence on DTN Plc. from April 26 to May 11, 2004 after each of them had paid the mandatory $10,000 non-refundable data room fees.
Having concluded their due diligence, the five bidders, he added, were given till June 4 to submit their technical and financial proposals, along with a N100 million bid bond for the DTN transaction.
Kekere-Ekun said with the timeframe given for the submission of bids, the technical and financial proposals were received from the bidders, prompting an evaluation committee to be constituted to screen the bid bonds and evaluate the technical proposals in accordance with the criteria set out in the request for proposals issued to the bidders.
He added that bidders who scored 70 per cent and above and submitted a full-compliant bid bond were recommended to the technical committee of the NCP for their financial bids to be opened.
Kekere-Ekun then said of the evaluation: "Of the five bidders that submitted proposals for the acquisition of DTN, only two were deemed by the committee to have meet the minimum defined criteria, and submitted the Bid Bond required to move to the next stage of the exercise.
"Specifically, the technical and financial proposals submitted by Management, Forum Mayoral were rendered invalid for non-submission of the N100 million bid bond, while the technical proposal submitted by Patike Communications did not meet the minimum pre-qualifying mark of 70 per cent.
"As such, the top bidders that have fully qualified for the financial bid opening stage for the DTN transaction are: Folio Communications Ltd and Mindsprings Communications Ltd," he added.
Folio Communication is a wholly owned Nigerian company incorporated in February 1993 for the purposes of publishing, advertising, printing, entertainment and promotions, among others.
The company is made up of individuals with extensive experience in printing, publishing and allied businesses including hospitality and tourism, advertising and commercial printing, according to the profile provided by the NCP.
The profile also said the company has an associated company - Wilson and Weizman Associates - an international media relations and policy consulting company which publishes an international news magazine - Nigerian Review.
The profile named Mr. Chidi Amuta as the proposed managing director and editor-in-chief of the new Daily Times and stated that he is at the moment the chief executive officer of Wilson and Weizman Associates.
He is also the former chairman of the Editorial Board of DTN and former MD/editor-in-chief of the Post Express.
