Indorama's acquisition of 5% equity in Eleme Petrochemicals from government halted by Senate

11-Aug-11

A senate ad hoc committee investigating the sale of government investments through privatisation has ordered the Bureau of Public enterprise to stop the sales of federal government's equity in Eleme Petrochemicals to Indorama, s per dailytimes.com. The lawmakers say it would be illegal for Indorama to acquire federal government's 5% stake in the company, advising BPE to stop the sales and return the N4.2 billion which Indorama Group offered for the shares. Indorama Group, which bought 75% equity in Eleme Petrochemical Company in 2006, currently seeks to acquire the federal government's 5% equity in the company. Though Indorama has paid for the shares, equity is yet to be transferred to it, as the bureau awaits approval of the National Council on Privatisation to seal the deal. The federal government has earned N12 billion from its share in the Eleme Petrochemical which it sold to Indorama Group at US$235 mln in 2006. A breakdown of ownership of the company reveals that the Indorama has 75% share, the Nigerian National Petroleum Corp has 10%, host communities 7.5%, workers have 2.5% and 5% is held by the federal government.