SAHCO set to raise N406mn through IPO

Skyways Aviation Handling Company (SAHCO) Plc on Monday launched an Initial Public Offering for sale of N406, 074, 000 worth of shares effective November 12, 2018.

The shareholders of the company have agreed to divest 49 per cent equity to the public in line with the share purchase agreement it signed with the Bureau of Public Enterprises ( BPE) years back when the firm was privatized.

At the signing ceremony witnessed by the Director-General of Bureau of Public Enterprises (BPE), Mr. Alex Okoh, its shareholders and other stakeholders, the company said is offering an Ordinary Share of 50 kobo each at N4.65 per share payable in full.

Chairman of the company, Mr. Taiwo Afolabi said based on the terms of the executed Share Sale and Purchase Agreement (SSPA) in respect of the privatization, the shareholders of the company were obligated to divest 49 per cent equity stake in SAHCO to the Public.

However, 10 per cent of the shares to be divested would be sold to the staff of the company.

The chairman explained that the current shareholders would divest N406 million Ordinary Shares of 50 kobo each representing 30 per cent of the entire issued and fully paid up Ordinary Shares in compliance with the terms of the SSPA.

He said the company got the approval of BPE for a phased divestment in view of the current market conditions, adding that there were plans to divest the balance of 19 per cent equity stake at a future date.

“SAHCO future strategy is to create long term shareholder value through the profitable operation and expansion of its business beyond Nigeria and into other West African markets with a vision to become the leading provider of passenger, ramp and cargo handling services in the West Africa sub-region”, he said.

DG of BPE, Mr. Alex Okon recalled that SAHCO was privatized as part of the Federal Government’s enterprise reform agenda aimed at managing the privatized companies for efficiency and enhanced profitability.

According to him, the SIFAX Group was required to offer certain percentage to the public to change the perspective that the assets were sold to cronies and friends of government.

Also speaking Managing Director of SAHCO, Basil Agboarumi said the firm will put to judicious use proceeds from the funds injection to enable SAHCO remain a market leader in cargo , ramp and passenger handling services.

He said the 10 per cent of the shares to be sold to the workers will generate proceeds that will be used to cater to the need of its personnel.