Lead Capital Emerges NIRMSCO’s Transaction Adviser

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Lead Capital Markets Ltd has emerged the transaction adviser for the Initial Public Offer (IPO) of NIRMSCO Properties Limited (owners of Transcorp Hilton Hotel, Abuja).

The Bureau of Public Enterprises (BPE) disclosed this in a statement made available to The Tide source on Thursday in Lagos.

According to BPE, the consortium outscored three others with 92.58 points to win the bid to sell Federal Government’s 24 per cent holdings in the company.

The other capital market operators which showed interest in the technical advisory services were FCMB Capital Markets Ltd, FBN Capital Markets Limited Consortium and Chapel Hill Management Consortium.

BPE quoted the Acting Director General of the bureau, Ms Bolanle Onagoruwa, as commending Transcorp Hilton Hotel’s proactive commitment to the tourism industry.

Onagoruwa expressed BPE’s delight in the hotel’s returns policy to shareholders on quarterly basis.

“During the last five years, the company has performed well in the competitive hospitality industry in Nigeria and available statistics to us indicate that its current performance is above industry average,” she stated.

She said the National Council on Privatisation (NCP) had also approved the divestment of 24 per cent out of government’s 49 per cent equity in the company to the general public through IPO.

According to her, 10 per cent of the shares on offer would be preferentially allotted to the staff of the company as an incentive.

The Acting DG charged the successful advisory firm to show a high level of diligence, accountability and transparency throughout the duration of the transaction process.

She said the coming of NIRMSCO Properties was made possible through NICON Insurance Corporation efforts to aid the development of the hospitality industry in Abuja.

According o her, the aid will come through a loan facility to be guaranteed by the Federal Government from a consortium of foreign banks to finance the construction of the hotel.

Reports said that the hotel began operations on April 14, 1987.

Onagoruwa said that the privatisation of NIRMSCO Properties Limited through core investor sale was concluded in 2005 with the company’s 51 per cent shares sold to Capital Consortium/Transnational Corporation Plc.

“The remaining 49 per cent is scheduled to be divested later through IPO.

“BPE commenced divestment process by issuing Request for Proposals (RFPs) to the eight consortia approved by the NCP to provide advisory services.

“At the close of the deadline for the submission of proposals in May 2009, only six firms submitted technical and financial proposals for evaluation,” Onagoruwa said.