18th February, 2015
Delta state governor, Emmanuel Uduaghan, has given approval for the sale of its shares in Transcorp Ughelli Power Limited and Midwestern Oil and Gas Company Limited, with a view to up its revenue base.
The State Commissioner for Information, Chike Ogeah who made this known in a press statement issued on Tuesday in Asaba, explained that the government had invested in some viable ventures when the state had excess funds as a way of saving for the raining day.
He said the decision to sell the shares was as a result of “the steep decline in the price of crude oil which led to a huge drop in the statutory allocation the state receives from the Federal Government.”
“Given the very significant decline in the resources available to the state government as a result of the low price of crude oil, the government decided to sell its shares in Transcorp Ughelli Power Limited and Midwestern Oil and Gas Company Limited.”
Ogeah who denied reports that the sales process was being conducted unilaterally, stated that due process was being observed “with the appointment of financial advisers to the exercise.”
“In line with the provisions of the Fiscal Responsibility Act, the issue was tabled before the Executive Council which approved the commencement of the process of the divestment in both companies,” he added.
According to him, existing shareholders in the two companies will exercise the right of first refusal in deference to the articles of association of both companies, and assured Deltans that “by all market indices, what will be realised from the sale will be a significant profit from the earlier investment.”
“The amount mentioned as realizable is only a benchmark based on the evaluation of current market trends by the financial advisers. In effect, actual sale could see more money being realised. It could also be less,” Ogeah disclosed.