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Olugbemi. Adeyinka Ogunleye
1 week ago
Overview
$700m Delta Steel Company sold for $30m - BPE DG
The Director General of the Bureau for Public Enterprises, Ayodeji Gbeleyi, on Friday, revealed that Delta Steel Company, valued at over $700m, was sold for $30m.
Gbeleyi stated this while interfacing with the House of Representatives Committee on Public Assets in Abuja. “A company worth $700m was sold for just $30m,” he said, noting that under the Federal Government’s privatisation policy, “80 per cent of Delta Steel Company in Aladja, Delta State, was sold to Global Infrastructure Nigeria Ltd in 2005, while the government retained a 20 per cent stake.”
He explained that residential buildings and land owned by the company were used to settle workers and pensioners. After privatisation, the company reportedly used Delta Steel Company’s assets as collateral for a loan from Ecobank. The BPE DG further revealed that due to non-performance, the Asset Management Corporation of Nigeria acquired the assets in 2015 and sold them to Premium Steel and Mines Ltd.
He accused AMCON of failing to seek clarification from BPE before selling the assets, stressing that while BPE was aware of the loan from Ecobank, it had no knowledge of three other banks listed by AMCON as creditors
More: https://punchng.com/700m-delta-steel-company-sold-for-30m-bpe-dg/
