Skyways Aviation Handling Company (SAHCO) Plc has unveiled plans for 406, 074, 000 shares in its Initial Public Offering (IPO) on the Nigeria Stock Exchange (NSE) scheduled for Monday, November 12, 2018.
The investment decision followed the shareholders’ agreement to divest 49 percent equity to the public in line with the share purchase agreement (SPA) they signed with the Bureau of Public Enterprises ( BPE) some years ago when the company 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 stated that it was offering an Ordinary Share of 50 kobo each at N4.65 per share payable in full.
Commenting on the IPO arrangement, the company’s Chairman, Dr. Taiwo Afolabi, explained that 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 percent equity stake in SAHCO to the public.
Out of the divestment, 10 percent of the shares would be sold to the staff of the company.
Afolabi explained that the current shareholders would divest 406 million Ordinary Shares of 50 kobo each representing 30 percent 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 are plans to divest the balance of 19 percent equity stake at a future date.
The chairman explained: “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.”
Commenting on the IPO arrangement, the BPE’s boss 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.
Okoh pointed out that based on the privatization terms, 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.
Similarly, in his remarks, SAHCO’s Managing Director, Basil Agboarumi, said that the company would utilize judiciously the proceeds from the IPO to enable it remain a market leader in cargo, ramp and passenger handling services.
