Sale of Eleme Petrochemical remains unresolved

04-Nov-05

The financial opening bids for Eleme Petrochemical Company, one of Nigeria's three petrochemical plants, remains unresolved, as offers made by the companies fall far below the reserve price. Dangote Transcorp Consortium and the Indorama Group, two pre-qualified conglomerates attempting to gain 75% of the government's equity share holding failed to grab Eleme. At the end of the second round, the Dangote Group offered to pay $10 mln together with the company's liabilities and 210 million dollars without liabilities. In its initial bid, the company had offered $5 mln in addition to the liabilities or $90 mln without the liabilities. Indorama has offered $121.5 mln with liabilities and $219 mln without liabilities, including a cash consideration of $21.5 mln, totalling 241.5 million dollars. This offer was a hike from Indorama's initial bid of $120.5 mln with liabilities and $240.5 mln without liabilities.