By Udeme Ekwere

Shareholders of Nigerian Aviation Handling Company Plc have given unanimous approval to the management of the company for the transfer of its assets to a subsidiary.

A statement from the company on Thursday noted that the management of the company had proposed the transfer of assets of the company to NAHCO FTZ, a subsidiary that would operate in a Free Trade Zone.

The shareholders at the company’s Extraordinary General Meeting in Abuja, on Thursday, approved the transfer of the assets, and also endorsed a proposal to approve the Management Support Agreement of the company.

The Managing Director of the company, Mr. Kayode Ojo, said the MSA and transfer of assets to the subsidiary were presented by the board of the company for shareholders’ approval as ordinary resolutions.

He added that the initiative would not only enhance operational efficiency and competitiveness of the company in the global aviation cargo handling industry but also translate to great economic benefits for shareholders and the country.

Ojo was quoted in the statement as saying, “The two business issues listed for the shareholders’ approval, are very important, this is because, the purpose of the MSA really is to enhance and consolidate on the reach that the company requires to deepen its management activities and draw a line between management and non- executive directors in terms of policy, influence and support.

“It will also ensure that we get favourable responses with regards to a couple of things that affect our company within the country and possible issues of our inorganic expansion.”

He added that it would also ensure that the company performed its activities benchmarked against standards that were similar to those which other companies operating in the same industry operated.

Speaking more on the strategic role that the transfer of assets to NAHCO FTZ would play in the business operations, he said, “Traditionally, companies that run the type of business that we run, have the benefits of enjoying tax exemptions and other opportunities of Free Trade Zone. Unfortunately, NAHCO has operated for several years without that and throughout the period as a qualified business entity we did not seek for that.

“As a business, we have therefore, asked ourselves how we can do our business better and how to seek for fiscal exemptions that will enhance our business”.

Meanwhile, the company’s board also recommended the payment of 15 kobo per share as interim dividend for all shareholders, stating that if approved, shareholders would get paid before the end of next month.

The National President of the Renaissance Shareholders’ Association of Nigeria, Ambassador Olufemi Timothy, while approving the dividend, noted that the decisions taken at the EGM would enhance operational efficiency of the company and benefit investors and the country tremendously.

Source: Punch