Another row on proprietary rights involving Dangote Cement Company is brewing in Benue State as the Benue Investment and Property Company Limited, BIPC, requests the payment of the company’s accrued dividend and other entitlements amounting to over N65 billion.
BIPC is also demanding to be on the board of Dangote Cement Company PLC as Deputy Managing Director in addition to having 10 percent equity as well as Benue State Government having two members on the board of Dangote Cement Company.
The Managing/Chief Executive Officer, BIPC, Dr. Raymond Asemakaha, who made the demand at a press conference in Makurdi, said BIPC still has holdings under the defunct Benue Cement Company, BCC which is now Dangote Cement Company PLC.
Dr. Asemakaha explained that the management of BIPC under his watch is desirous to reclaiming its holding and allied entitlements in the company following the Rights Issue of 2005.
According to him, before the implementation of President Olusegun’s Obasanjo’s Privatization Policy, the then Benue Cement Company PLC was jointly owned by the Federal Government of Nigeria, Benue State Government represented by BIPC and other minority shareholders respectively.
He also noted the implementation of the privatization policy and the Rights Issue of 2005 changed the character of the ownership structure of the company with Dangote Industries retaining majority control of the shares.
He said: “While Dangote Industries has since retained and exercised control over the affairs of the company as a majority shareholder in line with regulatory and corporate governance principles, it is important to note and categorically state that BIPC remains a significant shareholder of the company with definable benefits notwithstanding the nature of the aforementioned change and attainment of the majority shareholding status.
“Regrettably, the management of Dangote Industries (owners of the Dangote Cement Company Plc) breached all the material codes associated with takeover of a company and has thus continued to manage the affairs of the company in violation of mutual agreement and corporate governance principles applicable to quoted companies. For ease of reference and clarity of purpose, the Management of Dangote Cement PLC entered into a Terms of Settlement with BIPC detailing the Company’s (BIPC’S) holdings and managerial positions as a basis for the withdrawal of Suit No. IST/APP/02/2006 filed against her at the Security and Investment Tribunal.
“More importantly, it has become imperative to inform the good people of Benue State and the concerned members of the public that the blatant, continuous sabotage and refusal by Dangote Industries Ltd to effectuate the consummation of the Final Terms of the Out of Court Settlement, particularly the all-important term to cede a minimum of 10% in the equity stakes of the defunct BCC Plc, now Dangote cement Plc is part of why this fresh endeavour by the current management of the BIPC.
“Therefore, and in recognition and promotion of a harmonious business relationship with our allies including but not limited to the management of Dangote Industries, we have made concerted efforts aimed at addressing the breach complained of but to no avail as the Management of Dangote Industries has continuously treated our request with disdain.
“As a management and organization that places high premium on processes and procedures, we briefed one of our external solicitors; to write to the management of Dangote Industries and demand for the allotment of 111,438,493 units of shares in satisfaction of the Terms of Settlement that was entered into as Judgment of the Court at the instance of Dangote Industries.
“In furtherance of our instruction, the firm wrote the said letter and caused same to be served on Dangote Industries Headquarters in satisfaction of administrative requirements and corporate governance principles in addition to the exchange of other correspondences on the above subject matter. However, and as at the date of this press release, Dangote Industries Plc has neither responded to the letters nor settled the outstanding entitlements.
“It is on the basis of the foregoing that we are obliged to brief the good people of Benue State and the concerned members of the public of these developments and our efforts towards remedying the situation through legal and judicial processes”.
Crediblenewsng.com
