By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-Benue State has sold about 30 million units of its shares worth 7.0 billion naira in Dangote Cement Plc (DANGCEM) held in trust for the indigenes by the Benue Investment and Property Company Limited, a source familiar with the deal confirmed to InvestAdvocate.
Our source says there is considerable unease in Benue State over the sale as opposition to the state government has queried the development.
“There is considerable unease in Benue State over the sale of Dangote Cement shares held in trust for the indigenes by the Benue Investment and Property Company Limited,” the source said.
The sale of about 30 million units out of the original 90 million held by the state, which took place on the floor of the Nigerian Stock Exchange, (NSE) is valued at over N7 billion which serves as portfolio investment for the state and the parastatals.
Our source said the government of Benue State plans to sell all the shares, before the elections setting a target of N20 billion from the exercise. “If carried through, Benue State would have lost all the shares of its portfolio investment in the cement manufacturing conglomerate,” the source disclosed.
Investigation revealed that many Benue indigenes are taken aback by the government’s decision which they say is to deprive the people of their priced investment in Dangote Cement.
Some top leaders of the All Progressive Congress (APC) queried the motive behind the sale and called on the state government to urgently clear the air over the development to avoid any untoward reaction from the people.
However, we gathered that a considerable number of persons questioned the rational by the state government to deprive its people of what they termed, “this valuable investment,” at a time the company is doing well in the capital market.
According to them, if no action is taken to prevent the wholesale sale of the shares, the state would be the looser, since the proceeds so far realised have not been invested in any profitable venture, nor disclosed to the State House of Assembly for appropriation as required by law.
They cited the case of what transpired in Delta State where its shares in Airtel were surreptitiously disposed and the proceeds invested as private equity in the defunct Oceanic Bank.
“We suspect the state government is building a war chest for the 2015 elections by the surreptitious manner the shares were being sold. Otherwise, what stops it from informing the citizens of the state about it?” the source affirmed.
“Did the government obtain the consent of the State House of Assembly before selling the shares? Where is the money realised so far from the transaction kept? These and other pertinent questions will be asked by us, “an APC chieftain from the state said over the weekend.
At the end of transactions on Friday at the Nigerian bourse share price of Dangote Cement declined N3.98 kobo as it open N223.98 kobo and closed N220.00 depreciating 1.78 percent.
