Posted by By Emma Ujah on
The preferred bidders in the privatisation of the Nigeria Sugar Company, Bacita, Josepdam & Sons Nigeria Limited, has paid the initial $20 million (about N2.470 billion) representing 50 per cent of the $4.4 million bid price to the Bureau of Public Enterprises (BPE).
The preferred bidders in the privatisation of the Nigeria Sugar Company, Bacita, Josepdam & Sons Nigeria Limited, has paid the initial $20 million (about N2.470 billion) representing 50 per cent of the $4.4 million bid price to the Bureau of Public Enterprises (BPE).
The Managing Director (MD) of Josepdam, Mrs Josephine Kuteyi, personally handed over the cheque to the Director-General of the BPE, Mrs. Irene Chigbue, at a brief ceremony held in Abuja, on Monday and witnessed by the directors of the company, those of the BPE, as well as top management of Wema Bank Plc, led by its MD, Mr. Adebisi Omoyemi.
Kuteyi pledged that her company was determined to resuscitate the moribund firm and turn it into an efficiently run company that would immensely contribute to the drive against the importation of sugar and would provide jobs for many Nigerian youths currently roaming the streets. 'We are happy to be able to move into Bacita. It is not a matter of ego. We have been in trading for a very long time and it has been our yearning to be able to contribute efficiently to the economy of the country," she said.
According to her, the goal of the company was to go into full scale sugar production, from farming the canes through crushing to the final products refining and that the ground work had been done in collaboration with foreign technical partners from South Africa.
Her words: 'Sugar refining is not the end of sugar business. We should be able to contribute efficiently to the economy of the country through farming and that is why we have gone all the way to bring those who know about sugar plantation, refining and we are sure, with our technical partners from South Africa, we will get there.
'We know very well that the task is enormous but I can assure you that although we may not be able to carry it out by ourselves, we have somebody by our side that has the power and can do all things and that is the father who can do all things."
In a brief chart, the MD of Wema Bank said the bank granted the loan facility to enable Josepdam buy into the sugar company based on the confidence reposed in her ability to profitably utilize the funds.
According to him, Josepdam has been in the business of sugar for 20 years and had the requisite experience to have a breakthrough in the running of the plant and then be able to repay the credit advanced to it by Wema Bank. Mr. Omoyemi said Wema Bank also gave the credit facility as a demonstration of its support for the privatization programme, which according to him, remained very relevant in the nation's efforts at repositioning the economy to be more productive through the growth of the real sectors. 'We are interested in supporting privatization in the country because we know that is one of the things that will galvernise our economy and secondly.
She has been in the business of sugar for over 20 years and sha hes been our for 15 years,"" he said.
Earlier, the DG of BPE expressed satisfaction that the core investors in the transaction were able to mobilize adequate resources to pay the first installment in the deal which she pointed out made her apprehensive when the money was not paid on the appointed date.
She however, noted that the delay was due to issues that had to be straightened in the deal, particularly that of obtaining the title to the Sugar Company''s land in Bacita where it has its factory and other properties necessary for sugar plantation.
Mrs. Chigbue urged the investors to live up to expectation by paying the remaining 50 per cent as at when due in other to seal the transaction and charged the company to diligently work on the plant to return it to an efficiently run firm in the near future.
The company in liquidation has about N11 billion liabilities, an indication that the about N5 billion to be realized from its sale would not be able to settle the entire debt.
The BPE boss, therefore, explained that priority would be given to staff liabilities and tat thereafter debts owed to other creditors would be settled based on what was realised from the sale, which according to her made the liquidation option the best for the company''s privatization.