The Benue State Government has announced its intention to recover its stake and associated entitlements adding up to ₦65.8bn in Dangote Cement Company Limited, stemming from the 2005 Rights Issue.
Dr. Raymond Asemakaha, Managing Director of Benue Investment and Property Company (BIPC), disclosed this at a press conference in Makurdi on Monday.
According to Asemakaha, the state government is seeking the allocation of 111,438,493 units of shares, valued at ₦65.8 billion as of August 1, 2024. He stated that despite the 2005 privatization of Benue Cement Company Plc now Dangote Cement Plc, the state government, through BIPC, remained a significant shareholder with defined benefits.
He explained that after the takeover, an agreement was reached between BIPC and Dangote Cement, outlining the state’s stake in the company. This agreement, which led to the withdrawal of Suit No. IST/APP/02/2006 from the Securities and Investment Tribunal, included agreed terms.
This included BIPC’s representation on the Dangote Cement board as Deputy Managing Director, a 10% equity stake in the company for BIPC and two representatives from the Benue State Government on the company’s board.
However, Asemakaha lamented that Dangote Cement has failed to honor the terms of the agreement, disregarding multiple efforts by the state government to resolve the issue amicably.
“In our commitment to maintaining a harmonious business relationship, we have made several attempts to address this breach, but Dangote Industries has repeatedly ignored our requests,” Asemakaha stated.
He further revealed that external solicitors had been engaged to formally demand the allocation of the 111,438,493 shares in accordance with the settlement. Additionally, BIPC is seeking payment of accrued dividends and other entitlements amounting to ₦65.8 billion.
Despite sending multiple letters and maintaining communication with Dangote Industries, Asemakaha said there has been no response or effort to resolve the matter.
“In light of this, we are informing the people of Benue State and the public about these developments and our commitment to pursuing legal and judicial remedies,” he added.
Efforts to get a response from the Dangote Group’s spokesperson, Anthony Chiejina, were unsuccessful, as he did not respond to inquiries regarding the claims made by the Benue State Government.