Dangote-led consortium set to acquire Peugeot plant from AMCON

26 May 2017
Financial Nigeria

Summary

Dangote reportedly submitted a bid for the AMCON stake in partnership with the Kaduna and Kebbi state governments as well as the Bank of Industry.

Aliko Dangote, President/Chief Executive, Dangote Group

The Asset Management Corporation of Nigeria is set to complete the sale of Peugeot Automobile Nigeria Limited (PAN) to a consortium of investors led by Aliko Dangote, Africa’s richest man.

Speaking in an interview with Reuters on Friday, Ahmed Kuru, AMCON’s CEO, said the ‘bad bank’ had concluded all processes regarding the sale, but it is awaiting approval from the Central Bank of Nigeria.

“We have concluded all process on the bids since about two months ago, all we are waiting for is the approval of the central bank,” Kuru said.

In January 2016, AMCON launched an auction to sell its 79.3 percent stake in PAN, which is a Kaduna-based joint venture with French automaker Peugeot Citroen. AMCON said PAN had assets of about N24.96 billion and equity of about N11.98 billion as of December 2014.

Dangote reportedly submitted a bid for the AMCON stake in partnership with the Kaduna and Kebbi state governments as well as the Bank of Industry, Governor Nasir El-Rufai said in March last year.

Kuru told Reuters that AMCON’s stake is worth over N15 billion, according to its latest valuation. He declined to name the company Dangote and his partners are using to acquire the automaker.
 
Founded in 1972 as joint venture between the federal government and Peugeot Citroen, PAN Nigeria was once the dominant car manufacturer in Nigeria with an annual production of 90,000 vehicles.

The company, however, ran into troubles after the government sold off its majority stake in 2006 and reduced its patronage. The company’s revenues declined from N30 billion in 2007 to less than N2 billion in 2013; while sales declined from 12,000 vehicles in 2007 to less than 1,000 vehicles in 2013, according to media reports.


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