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Ibru Family Pushing Hard to Buy Back Aero Contractors

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Aero Contractors Airlines
  • Ibru Family Pushing Hard to Buy Back Aero Contractors

The Ibru family has expressed its willingness to buy back Aero Contractors, which it lost to Asset Management Corporation of Nigeria (AMCON) owing to the airline’s huge indebtedness to banks.

A source with the aviation industry, who disclosed this said AMCON is willing to sell the airline to Ibru family or any other interested party at a good price.

The source also hinted that the federal government offered Arik Air, which was recently taken over by AMCON to two international airlines to buy, but the airlines declined.

Aero Contractors was initially owed by the Ibru family and CHC Helicopters of Canada. But CHC, some years ago, relinquished its stakes in the airline, leaving the Ibru family as sole owner.

The airline was taken over by AMCON when it could not offset the credit facility it secured from Oceanic Bank and later Ecobank, which absorbed the assets and liability of the defunct Oceanic bank.

Source inside Aero source that First Capital, which was appointed to oversee the sale of the airline hinted that about 18 companies from Nigeria and overseas have indicated interest to buy the airline. But the Ibru family is said to be making moves to buy back the airline and is willing to pay about 50 per cent of the total debts owed AMCON, which was put at about N35 billion.

“We have over 18 people that have indicated interest to buy Aero, but the Ibru family wants to settle. First Capital responsible for the sale said interested parties are coming from Nigeria and overseas and there are a lot of buyers. The Ibru family is willing to offer up to 50 percent of what the airline owed,” the source said.

The source said that right now AMCON has the controlling share of the airline and if the Ibru family after negotiation agrees to pay 50 percent of the debts; which means that it has merely offset part of the debts of the airline and this may not have anything to do with the shareholding, but with such payment, the shareholding could be renegotiated.

“If they pay there will be a restructure of the share capital, but AMCON will still own the capital but it will remove the receivership of the company, then the Ibru family can get an investor who will now buy AMCON shares. The initial debt (about N15 billion) owed AMCON was converted to shares; that is why the Corporation has controlling share, but the second debts amounts to about N20 billion and it is still there,” the source said.

Meanwhile, sources in aviation industry disclosed on Wednesday that the federal government had approached Ethiopia Airline and Turkish Airline to buy Arik Air but they declined.

Although we could not confirm why the two airlines declined the offer, sources said it may not be unconnected with the controversies surrounding the takeover of the airline.

Before the AMCON took over Arik Air last February, it was gathered that Ethiopia Airline would be giving the managing contract of the nation’s foremost airline, but Ethiopian Airlines Group CEO, Tewolde Gebremariam, told a local medium, The Reporter that the Nigerian government asked the help of his management to re-launch the national carrier of Nigeria (Arik).

“Recently, our team was in Nigeria because we have been requested by the government of Nigeria to support the reestablishment of their national airline”, he said.

Although he declined to disclose the details of the plan, saying the discussion was at an early stage, THISDAY gathered that the airline might be reluctant to acquiesce to the request of the federal government because “they don’t know who is in charge of Arik Air and who to deal with. Is it the Ministry of Transport or AMCON?”

Spokesman of AMCON Jude Nwauzor however said that the Corporation is willing to sell Aero to anyone willing to offer good price for the airline.

He said AMCON has spent money and it is still spending money on running cost to ensure the airline continues to operate.

“We are willing to sell Aero. We have been spending money on running cost of the airline; so if anybody offers us good money, we will sell it. We know that if Aero and Arik sell all their assets, they won’t be able to pay AMCON what it has spent on the two airlines,” Nwauzor said. Nwauzor however said he was not aware that anybody has indicated interest to buy either Aero or Arik.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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