The Benue State Government on Monday vowed to reclaim its holdings and allied entitlements in Dangote Cement Company Limited following the Rights Issue of 2005.
The Managing Director of Benue Investment and Property Company, Dr Raymond Asemakaha disclosed this at a press conference in Makurdi.
He said the state government is demanding the allotment of 111,438,493 units of the shares valued at N65.8bn as of August 1, 2024.
According to him, since Dangote took over the control of the cement company, formerly known as Benue Cement Company Plc in 2005 through the privatisation process, the state government through BIPC remained a significant shareholder of the company with definable benefits.
Asemakaha further explained that after taking over, 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 Dangote at the Security and Investment Tribunal.
He outlined the Terms of Settlement to include that BIPC be on the Board of Dangote Cement Company as Deputy Managing Director, 10 per cent equity to BIPC, and that the Benue State Government should have two members on the board of the company.
Asemakaha lamented that the management of Dangote Cement Company had sabotaged efforts to consummate the final terms of the out-of-court settlement.
He said, “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 organisation that places a 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 addition, the payment of BIPC’s accrued dividend and other entitlements since the takeover of the company amounting to N65.8bn as of August 1, 2024. In furtherance of our instruction, the firm wrote the said letter and caused the 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, as of the date of this press release, Dangote Industries Plc has neither responded to the letters nor settled the outstanding entitlements.”
Asemakaha said the various letters written to Dangote Industries on the above subject matter are also available for sighting and confirmation.
“It is based on 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,” he stated.
Meanwhile, efforts to get the spokesperson for Dangote Group, Anthony Chiejina, to respond to the claims by the Benue State Government official were not successful as he did not reply to enquiries.
SOURCE; PUNCH
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