Shareholders in the Nigerian capital market have called on the Federal Government to hasten activities that would lead to the listing of power distribution companies on the NSE.

Specifically, the shareholders have said that the Nigerian Stock Exchange as well as the investing community stood to gain a lot from the listing of such firms as it would go a long way towards increasing the depth of the market.

In a statement on Monday, the shareholders called on government to support the bid of some quoted companies to acquire some of the distribution firms.

According to them, it is important for the Bureau of Public Enterprises to give priority to quoted companies in the sale of 11 distribution companies created from the unbundling of Power Holding Company of Nigeria.

The National Coordinator, Independent Shareholders Association of Nigeria, Mr. Sunny Nwosu, said that urgent attention had to be given to the issue on ground, adding that it was important that the BPE should not repeat the mistake of the past.

He said, “Since we have some companies which are listed that are bidding for the discos, I want to respectfully urge the government to give these firms the opportunity to acquire them.

“If they do that all stakeholders would benefit. The shareholders would share from the profit, the government would earn more revenue in form and tax and other fees among others.”

A total of 54 companies had met the July 31 deadline set for companies to submit technical and financial proposals for the privatisation of the 11 companies.

According to the statement, some firms already listed on the NSE, Oando Plc, National Aviation Handling Company Plc (Nahco Aviance) and Honeywell are among the companies that submitted bids to acquire some of the distribution companies.

Nwosu explained that the listed firms in question already had a trend in their financial performance and had listing experience, adding that it would therefore be easier for them to list their electricity distribution subsidiaries.

Speaking in the same vein, another shareholder, Mr. Timothy Adesiyan, said the government should favourably consider quoted and profitable companies.

“It would be a very laudable development if these companies are considered, because these are companies that are used to making their shares available to shareholders.

“If some of the discos are not sold to already listed firms, it would be another round of tough time to convince new firms to list the discos on the Exchange just as we are having with the telecommunications firms.”

Adesiyan said some of the listed companies have entered technical agreement with foreign partners to successfully manage this discos, adding that their listing status gives them the access to funds to run these firms.

Source: Punch/ Udeme Ekwere