Benue Govt engages Dangote Cement in legal battle over allied entitlement

…..demands N65.8 billion valued shares.

From Attah Ede Makurdi 

The Managing Director and Chief Executive Officer of the Benue Investment and Property Company (BIPC), Raymond Asemakaha, on Monday said that the company on behalf of the Benue State government, has activated  legal means to reclaim its holdings and allied entitlements in Dangote Cement Company Limited. 

He further stated that the state government is demanding the allotment of 111,438,493 units of the shares valued at N65.8 billion in respect of the Rights Issue of 2005.

Asemakaha  disclosed this at a press conference held at the BIPC headquarters in Makurdi, Benue State capital, Monday.

He alluded that the state government will stop at nothing to pursue its rights of the shares for which Dangote Cement Company Limited has failed to honour an agreement with the state government.

“The agreement reached in 2005 was that BIPC would  be on the Board of Dangote Cement Company Limited as Deputy Managing Director; have 10 per cent equity to BIPC, with the State Government to have two members on the Board of Dangote Cement Company Limited. But Dangote Cement Company Limited has failed to implement any of the agreements.

“Regrettably, the Management of Dangote Industries (owners of the Dangote Cement Company Plc) breached all the material codes associated with the takeover of a company and has thus continued to manage the affairs of the Company in violation of mutual agreement and corporate governance principles applicable to quoted companies.

“Before the implementation of President Olusegun’s Obasanjo’s Privatization Policy, the then Benue Cement Company PLC was jointly owned by the Federal Government of Nigeria, Benue State Government is represented by BIPC and other minority shareholders respectively.

“Nevertheless, the implementation of the privatization policy and the Rights Issue of 2005 changed the character of the ownership structure of the Company with Dangote Industries retaining majority control of the shares.

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.

“More importantly, it has become imperative to inform the good people of Benue State and the concerned members of the public that the blatant, continuous sabotage and refusal by Dangote Industries Ltd to effectuate the consummation of the Final Terms of the Out of Court Settlement, particularly the all-important term to cede a minimum of 10% in the equity stakes of the defunct BCC Plc, now Dangote Cement Plc is part of why this fresh endeavour by the current management of the BIPC”.

“Therefore and in recognition and promotion of a harmonious business relationship with our allies including but not limited to the management of Dangote Industries, we have made concerted efforts aimed at addressing the breach complained of but to no avail as the Management of Dangote Industries has continuously treated our request with disdain.

“BIPC under my watch has briefed its external solicitors “to write to the Management of Dangote Industries and demand for 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 in addition, 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, 030) as at 1st August 2024.

“Dangote Industries Plc has neither responded to the letters nor settled the outstanding entitlements since the matter started and vowed not to relent in briefing people of the state and the concerned members of the public of the developments and our efforts towards remedying the situation through legal and judicial processes.

“Finally, we shall continue to periodically update your good selves on the progress of our pursuit in respect of this subject matter in line with His Excellency, Rev. Hyacinth Iormem Alia’s administrative principles of transparency and accountability”,  Asemakaha said.