The Benue Investment and Property Company Limited (BIPC), an investment arm of the Benue State Government has accused Dangote Cement of Breach of Trust and willfully refusing to grant it rights to its equity holdings.
The BIPC is not only demanding the allotment of 111,438,493 units of shares of Dangote Cement in satisfaction of the Terms of Settlement but the sum of N65,871,293,212 as accrued benefits over the years.
The Management of BIPC, Dr. Raymond Asemakaha, disclosed this on Monday at a press briefing in Abuja.
Find below the text of his speech during the press conference and the context of BIPCs claims.
SPEECH BY THE MANAGING DIRECTOR OF BENUE INVESTMENT AND PROPERTY COMPANY LIMITED (BIPC) ON ITS EQUITY HOLDING IN DANGOTE CEMENT COMPANY PLC, POST RIGHTS ISSUE OF 2005 AND MATTERS ARISING. DR. RAYMOND ASEMAKAHA-CFA.
- I am particularly delighted to provide a brief account of the ownership status of BIPC’S holdings in the defunct Benue Cement Company PLC now Dangote Cement Company PLC.
The Management of BIPC under my watch in reclaiming its holding and allied entitlements in the Company following the Rights Issue of 2005.
- As you may have been aware, 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.
Nevertheless, 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.
iii. Thus, 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. A copy of the Terms of Settlement detailing the obligations of parties thereto shall be made available after this press release.
- 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.
vii. 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 and in addition, the payment of BIPC’s accrued dividend and other entitlements since the takeover of the Company amounting to N65,871,293,212.30 (Sixty Five Billion, Eight Hundred and Seventy One Million, Two Hundred and Ninety Three Thousand, Two Hundred and Twelve Naira, Thirty Kobo) as at 1st August 2024.
viii. 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. The various letters written to Dangote Industries on the above subject matter are also available for sighting and confirmation.
- 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.
- Finally, we shall continue to periodically update you on the progress of our pursuit in respect of this subject matter in line with His Excellency, Rev. Dr. Hyacinth Iormem Alia’s administrative principles of transparency and accountability.
