Posted by From Onwuka Nzeshi in Abuja on
Dangote Group and 10 other prospective inves-tors have begun data room and due diligence exercises preparatory to their possible acquisition of the National Fertilizer Company of Nigeria Limited (NAFCON) , Onne, Rivers State and the Federal Super Phosphate Fertilizer Company (FSFC) located in Kaduna.
Dangote Group and 10 other prospective inves-tors have begun data room and due diligence exercises preparatory to their possible acquisition of the National Fertilizer Company of Nigeria Limited (NAFCON) , Onne, Rivers State and the Federal Super Phosphate Fertilizer Company (FSFC) located in Kaduna.
The exercises, which commenced last week is expected to create opportunity for the investors to submit their technical and financial proposals for the fertilizer plants in line with the directive of the liquidator's advertisement for expression of interest from prospective bidders.
The Bureau of Public Enterprises (BPE) disclosed at the weekend that bids were received from nine prospective investors in respect of NAFCON. The bidders aside from Dangote are Indorma International Finance Plc; Fertilizer and Chemicals; China National Chemical Engineering Group; CGC Overseas Construction Co. Ltd; and HRGC Investment Company Limited. Others are Mesto Oil & Gas Services Ltd; Universal Marketing Group (Lutianhua Group Inc) as well as Nuel Ojei Holdings Limited.
Also, two prospective core investors, Dangote Chemical Company and Hekio Consortium submitted bids in respect of the FSFC. All bidders are expected to submit their technical and financial proposals to the BPE by the first week of August.
NAFCON was established in 1981 as the first and largest modern nitrogenous fertilizer company, not only in Nigeria but also in the West African sub-region.
The plant with a total installed capacity of 4,500 metric tons per day, comprises of four main production units namely the ammonium, urea, NPK and the bulk blending plants. Production started at the complex in 1987 but the glory was short-lived and attempts by the federal government to rehabilitate it have been stalled since 2001.
The Kaduna based Federal Super Phosphate Fertilizer Company was incorporated in 1973, although production began at the plant three years later.
Both companies are owned wholly by the Federal Government, but due to the current policy of re-engineering a private sector-driven economy , the firms have been slated for privatisation wherein the core investors will acquire 90% of the equity shares while 10% will be reserved for employees of these organisations in line with the laid down rules of the National Council on Privatisation.