Privatisation: FG Raises N516m from Nigeria Hotels, Ore-Irele
From Cletus Akwaya in Abuja
Bureau for Public Enterprises (BPE) yesterday declared bid winners for two Federal Government enterprises being privatisated in which transactions the agency hopes to raise a total of N516.2 million. The enterprises are Nigeria Hotels Chalets and Ore-IreleOil Palm
Little known Labana Glover Ventures Nigeria Limited jointly owned by Alhaji Abdulrahman Ibrahim, Alhaji Abba Adamu and Hon. Mohammed K. Zailani out-staged big organizations like UBN Property Company and Nigeria Ports Authority (NPA) to emerge as bid winners for Nigeria Hotels Chalets Ikoyi with a revised bid price of N350million . The company had made an initial offer of N140 million in the first round before the substantial increase in the second round.
Five other bidders ForillonTransAtlantic Limited made an offer of N110 million, Integrated Services Limited N125million, Grand Towers N120 million, UBN Property N160 million and NPA N305 million at the end of second round of bidding.
The ceremony for opening of financial bids, which held at the Nicon Hilton Hotel was chaired by Director General of BPE, Dr. Julius Bala, and witnessed by other top officials of the privatization agency.
Situated on No 11 Oba Elegushi Road Ikoyi, Nigeria Hotels Chalets Ltd, consists of 6N one-bedroom guest chalets, a 4-room boy's quarters, an office building and a kitchen/canteen block all covering an approximate area of 3, 346Square metres. The facility had since 1961 been leased to NPA which lease deed expired on March 31, 2003 paving way for its privatization.
For the second enterprise, Ore-Irele Oil Palm company, CPL Agric Ltd. offered a bid revise price of N166.50 million having made an initial offer of N16.50 million for 300,000shares of the company representing 60 per cent equity to emerge as bid winners.
This was against the revised bid price of N50.1 million made by the second bidder, Goldsmart Ltd.
Based on the bid prices, Bala declared Labana Glover Ventures Limited and CPL Agric Ltd. as bid winners for Ikoyi Hotels Chalets and Ore-Irele Oil Palm limited respectively.
"It's my pleasure to indicate that the winner of the bid is Labana Glover Ltd with an offer price of N350 million and the second in that line is NPA with an offer of N305 million.
"These bid offers will be submitted to the National Council on Privatisation (NCP) for approvals and we will get in touch as soon as we get the nod from the NCP,' Bala said.
He said the winning bids in both enterprises were being referred to the NCP because they fell below the reserved prices set by the BPE.
In a speech after the exercise, Bala congratulated all the bidders for taking interest in the privatization programme and urged them to explore the possibility of competing for other organizations slated for privatization.
He particularly commended Union Bank of Nigeria Properties Ltd for its participation, saying the desire of the BPE has been to get the big financial institutions to play leading role in the privatization programme.
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