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The 406,074,000 ordinary shares of Skyway Aviation Handling Company (SAHCO) Plc, proposed for sale, would be allotted on the basis of equality between the 360 federal constituencies in Nigeria and the Federal Capital Territory (FCT), Director General, Bureau of Public Enterprises (BPE), Mr. Alex A. Okoh, has said.
The public offer opens on Monday, November 12, 2018 and closes on Wednesday, December 19, 2018.
According to Okoh, the development is a great milestone for the BPE and the privatisation programme in Nigeria, adding that the investing public should take advantage of the offer.
Speaking in Lagos, he said the move is in fulfillment of the Nigeria Stock Exchange (NSE)’s commitment towards deepening Nigeria’s Capital Market through the provisions of opportunities for investment on the floor of the Nigeria Stock Exchange (NSE).
The Director General reiterated the commitment of the National Council on Privatisation (NCP) to ensuring that “privatisation transactions, especially reforms geared towards economic recovery for a buoyant Nigerian economy are done in line with international best practices” and that the present administration was poised to partnering with the Nigerian public and international investors in order to explore the opportunities available in the nation’s Capital Market.
According to him, SAHCO Plc (formerly Skyway Aviation Handling Company Limited-SAHCOL) was incorporated in March 1996 as a 100% fully-owned federal government enterprise but was privatised and handed over to the core-investor (SIFAX Group) on December 23, 2009 after being carved out of the liquidated Nigeria Airways Limited. He added that the company is 100% owned by the SIFAX Group.
He noted that SAHCO is one of the success stories of privatisation in Nigeria and pledged the determination of the present administration to ensure that all privatised enterprises are run efficiently and for the benefit of all Nigerians.
Also Speaking, Chairman of SIFAX Group, Dr. Taiwo Afolabi said the company has grown from 21% to 40% since take over in 2009 with 100% growth in revenue.
While enjoining the general public to take advantage of the public offer, he said 41% of the shares on sale will go to the investing public while 10% was reserved for staff of the company as statutorily required by the privatisation Act.
On why SAHCO had to wait nine years after take over before going public, he said the company wanted to procure state- of the- art equipment and have in place the necessary logistics before doing that; and that the investing climate was not ripe then.
Afolabi explained that the IPO was being undertaken based on terms of the executed Share Sale and Purchase Agreement (SSPA) that was sealed over the privatisation of the former Skypower.
He explained that under the terms of the SSPA, the shareholders of the company are required to divest 49 per cent equity stake in SAHCO to the investing Nigerian public, while 10 per cent of the shares to be divested would be sold to the staff of the company.
He said: 10% of the Ordinary Shares being offered for sale will be reserved for staff of SAHCO (in accordance with section 4.2 of the SSPA and section 5 (3) of the Public Enterprises (Privatisation and Commercialisation) Act No. 28 of 1999) under an Employee Stock Ownership Plan to be set up and administered by a Trustee.”
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