BIPC moves to reclaim equity stakes in Dangote Cement

• Vows to expose complicit government officials

By Scholastica Hir, Makurdi

The management of Benue Investment and Property Company Limited (BIPC) has commenced moves to reclaim its holding and allied entitlements in Dangote Cement Plc following the Rights Issue of 2005.

The company has, therefore, called on the management of Dangote Industries Ltd, managers of Dangote Cement Plc, to effect the final terms of the out-of-court settlement reached in 2005.

BIPC is particularly demanding the implementation of the term requiring Dangote Industries to cede a minimum of 10 per cent equity stake in the defunct Benue Cement Company Plc, now Dangote Cement Plc.

It has also demanded “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 the payment of BIPC’s accrued dividend and other entitlements since the takeover of the company, amounting to over N65.8 billion as at 1st August 2024.”

Managing Director of BIPC, Dr Raymond Asemakaha, stated this in his office on Monday while briefing newsmen on the company’s equity holding in Dangote Cement Plc, post-Rights Issue of 2005, and matters arising.

Giving a brief account of BIPC’s ownership status in the defunct Benue Cement Company Plc, now Dangote Cement Plc, Asemakaha explained that before the implementation of President Olusegun Obasanjo’s privatisation policy, the company was jointly owned by the Federal Government of Nigeria, the Benue State Government (represented by BIPC), and other minority shareholders.

According to him, the implementation of the privatisation policy and the Rights Issue of 2005 altered the ownership structure, with Dangote Industries retaining majority control of the shares.

He stated that while Dangote Industries has since retained and exercised control over the company as a majority shareholder in line with regulatory and corporate governance principles, BIPC remains a significant shareholder with definable benefits, notwithstanding the changes in shareholding structure.

However, he lamented that the management of Dangote Industries, owners of Dangote Cement Plc, had breached all material codes associated with the takeover of a company and continued to manage its affairs in violation of mutual agreements 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.

“Some of the terms also state that BIPC is to be on the board of Dangote Cement Plc as Deputy Managing Director, that the Benue State Government shall have two members on the board of the company, among others. None of these terms has been implemented,” he said.

He noted that BIPC had decided to go public over the blatant and continuous sabotage and refusal by Dangote Industries Ltd to honour the Final Terms of the Out-of-Court Settlement, particularly the critical term to cede a minimum of 10 per cent equity stake in the defunct BCC Plc, now Dangote Cement Plc. Past efforts and requests to address the breach, he said, had been treated with disdain.

“As a management and organisation that places a high premium on processes and procedures, we briefed one of our external solicitors to write to the management of Dangote Industries and demand 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. In addition, we demanded the payment of BIPC’s accrued dividend and other entitlements since the takeover of the company, amounting to Sixty-Five Billion, Eight Hundred and Seventy-One Million, Two Hundred and Ninety-Three Thousand, Two Hundred and Twelve Naira, Thirty Kobo (N65,871,293,212.30) as at 1st August 2024.”

He stated that the firm had written the said letter and served it on Dangote Industries’ headquarters to satisfy administrative requirements and corporate governance principles, in addition to the exchange of other correspondences on the matter.

However, as of Monday, when he was briefing newsmen, Dangote Industries Plc had neither responded to the letters nor settled the outstanding entitlements.

He added that while the company continues in its fresh efforts to reclaim its entitlements, management would also make public the names of some top government officials who were complicit with Dangote Industries during the period under consideration, from 2005 to 2025.