Nigeria terminates offer of purchase of ALSCON by BFI Group

The National Council on Privatisation (NCP) has approved the termination of the offer to purchase 77.5 per cent of Aluminum Smelter Company of Nigeria (ALSCON) by BFI Group Corporation. Notice of the offer termination is contained in a statement signed by Mr Chigbo Anichebe, the NCP Head of Public Communications on Tuesday in Abuja.
The statement noted that the termination followed BFI Group Corporation’s inability to pay the agreed 10 per cent of the offer price as directed by the Supreme Court of Nigeria. The Supreme Court had directed that the 10 per cent be paid within 15 working days of the execution of the Share/Sales Purchase Agreement (SPA).

“The deadline for the execution of the SPA and payment of the 10 per cent of the offer price elapsed at midnight Nigerian time on March 18. As at that deadline date, BFI Group had neither executed the SPA nor made the initial mandatory 10 per cent of the bid amount,’’ the statement added. It recalled that the Supreme Court of Nigeria in a judgment on July 6, 2012 awarded ALSCON, located in Ikot-Abasi, Akwa-Ibom, to BFI Group Corporation.

It noted that in compliance with that judgment, the Bureau of Public Enterprises (BPE) transmitted an offer letter and the SPA in respect of ALSCON to BFI Group Corporation. “This followed the directive of the National Council on Privatisation (NCP), chaired by Vice President Namadi Sambo, which met at the Presidential Villa, Abuja on Jan. 22,” it added The statement said that BFI Group Corporation, the plaintiffs in the suit at the Supreme Court, was expected to execute the SPA and pay the agreed 10 per cent of the offer price of 410 million dollars.

It said that the amount that BFI should have paid within 15 days of the execution of the SPA as directed by the Supreme Court was 41 million dollars. It added that “BFI Group Corporation, in total disregard of the apex court, drafted and executed an agreement that was different from the one ordered by the Supreme Court.” It will be recalled that the financial bid opening for the privatisation of ALSCON was held on June 14, 2004 and BFI Group Corporation emerged the preferred bidder with a bid offer of 410 million dollars, subject to the approval of the NCP. The Federal Government approved the bid and on June 17, 2004 conveyed the approval of the Federal Government to BFI Group Corporation.