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BPE, Investors Meet on $211m Refund for Afam, Yola Disco

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Kano
  • BPE, Investors Meet on $211m Refund for Afam, Yola Disco

Officials of the Bureau of Public Enterprises and former investors in two electricity companies – Yola Electricity Distribution Company and Afam Power Plc – have met for the refund of $211.81m which the investors had paid for the two companies.

Integrated Energy Distribution and Marketing Company had acquired 60 per cent equity in YEDC after paying $146.8m.

The Yola Disco was successfully privatised and handed over to the core investor in 2013. However, a force majeure was declared in 2015 by the core investor citing insecurity in the North-East region of the country where the company covers.

Following this, the company was repossessed by the Federal Government.

On the other hand, with a bid of $260.05m, Taleveras had on July 31, 2013, beaten TES Power to emerge the preferred bidder for Afam Power Plc, the last of the generating companies carved out from the defunct Power Holding Company of Nigeria.

The transaction could not be concluded because of the inability of the government to sign a gas supply agreement with the company.

However, before the transaction failed, the investor had paid $65.01m representing 25 per cent of the transaction value.

Authoritative sources, who spoke to our correspondent, confirmed that three meetings had been held between the parties to work out modalities for the refund of the monies paid by the investors in the failed transaction exercises.

Both Afam and Yola Disco are in the process of being sold again to new private investors.

The BPE recently confirmed that 19 prospective core investors were conducting due diligence on the two companies.

Meanwhile, the Director-General of the BPE, Mr Alex Okoh, has charged members of the management board of the Yola Electricity Distribution Company to shun personal and sectional interests in the discharge of their duties.

A statement made available to our correspondent in Abuja on Wednesday said that Okoh gave the charge while inaugurating the board of the company headed by Mr Gbeleyi Ayodeji.

The BPE boss reminded the members that they were trustees of the electric distribution company and as such, they should exercise their powers with honesty and diligence.

Okoh said, “As directors, you are trustees of the company’s finances and properties which you must account for in the exercise of your duties with honesty for the interest of the company and the shareholders and not your own interests.”

He informed them that their responsibilities as directors of the company included fiduciary relationship towards the company and observance of utmost good faith towards the company in any transaction with it or on its behalf and acting at all times in the best interests of the company.

Responding on behalf of other members, Ayodeji commended the government for the confidence reposed in them and pledged to discharge their duties diligently.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Merger and Acquisition

United Kingdom Ordered Meta, Formerly Facebook, to Sell Giphy

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Facebook Meta

The United Kingdom’s Competition and Markets Authority (CMA) has instructed Meta – formerly known as Facebook – to sell Giphy, the American search engine that allows users search for and share short looping videos which are without sound, that are similar to animated GIF files.

The CMA stated that the merger deal could possibly be harmful to social media users and advertisers in the UK. It also found that the deal would further boost Meta’s already strong market power, as it would limit other platforms’ ability to use Giphy GIFs, which will, in turn, drive more traffic to sites owned by Facebook (WhatsApp, Instagram and Facebook).

According to the CMA, Meta’s sites dominated social media usage time up to around 73 percent, and could eventually outperform social media rivals like TikTok, Twitter and Snapchat by leveraging Giphy. The Authority then added that before the merger, Giphy had launched ”innovative advertising services” which brands like Dunkin’ Donuts and Pepsi which it could possibly have brought to the United Kingdom.

The CMA also stated that at the time the merger was made, Giphy’s advertising services were terminated by Facebook. That move removed a vital part of potential opposition in the market. The CMA was concerned by this move, calling it particularly concerning considering that Facebook is in control of about half of the £7 billion display advertising market in the UK.

Facebook had acquired Giphy for a reported fee of $400 million, with an aim of integrating the service into Instagram. After a month, the CMA started an investigation into the merger and decided in August that Facebook could hinder social media rivals such as TikTok and Snapchat from tapping into Giphy’s GIFs.

Meta had initially stated that the CMA did not have jurisdiction because Giphy was not operational in the United Kingdom, adding later that Giphy’s paid services were not display advertising by the definition of the CMA.

In October, Meta was fined $70 million by the CMA for breaking some rules related to the deal by failing to report necessary information and changing its chief compliance officer on two different occasions without receiving permission.

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Brands

Burger King Expands to Nigeria

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Burger King

Burger King, an American multinational chain of hamburger fast food restaurants, has opened its very first restaurant in Nigeria to deepen its growing brand, support new job creation and enhance economic productivity in Africa’s largest economy.

The United States Mission in Nigeria has praised the improving commercial ties between Nigeria and the United States as American franchises and branches set up shops in Nigeria. This has in turn created more jobs as well as investment opportunities in the country.

This was said by the US Mission Commercial Counselor, Jennifer Woods during her speech at the opening of the Burger King outlet in Nigeria. Woods underlined the impact which new businesses have on a country’s economy, especially with a popular franchise like Burger King opening in a developing market like Nigeria.

She said that being Africa’s largest economy and a large youth population with a strong connection to the world, American brands must look at Nigeria as a highly critical market. She went ahead to state that while the companies will benefit from the expansion into the country, Nigeria itself will also benefit largely from their presence in the country.

Woods also described the addition of another American-owned franchise (one that emphasizes a culture of excellence) will help to provide job opportunities as the business expands to new parts across the country. She praised the high level of interest by consumers and the passion which they have for the iconic American rapid service restaurant since it began its operations in early November.

The Speaker of the Nigerian House of Representatives, Honourable Femi Gbajabiamila congratulated Burger King and all its local partners on the intriguing business deal, explaining it as another signal of the benefits of a close business relationship between the United States and Nigeria. He also stated that Burger King is expected to open hundreds of outlets across the country.

Burger King entered into an alliance with local firm, Allied Food & Confectionary Services Limited in order to bring the American brand into the Nigerian market. The Group Managing Director of Allied Food & Confectionary Services Limited, Antoine Zammarieh has prior experience bringing United States rapid service restaurants to Nigeria.

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Company News

Panasonic Confirms Data Breach after Hacker Attack

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Panasonic Nigeria

Japanese tech giant Panasonic has affirmed that the company has been a victim of a data breach after some hackers were able to access the company’s internal network.

In a press release dated November 26, the company stated that its private network was illicitly accessed by a “third party” on November 11, and also stated that some data which was on a company file server had been retrieved during the breach.

However, a spokesperson for Panasonic, Dannea DeLisser stated that the data breach started on June 22, and ended on November 3. She also said that the very first unauthorized access was detected on November 11.

The company which is based in Osaka, Japan provided additional details about the breach. In the press release, the company said that although it is conducting its own investigation into the breach, it is also working with a third-party organization to investigate the data leak. The third party organization is also looking into whether or not the breach included personal information of customers or sensitive information which concerns social infrastructure.

Immediately the unauthorized access was discovered by the company, the incident was reported to the appropriate authorities who went ahead to set up some security countermeasures, which also contained steps to avert external access to the network. The company closed the statement by apologizing for concerns and inconveniences caused by the data breach.

This type of incident is not completely new to Panasonic, as just under a year ago Panasonic India faced a ransomware attack in which hackers leaked about 4 gigabytes of data, including email addresses and financial details.

The data breach also comes at a period when Japanese technology companies are facing waves of cyberattacks. NEC and Mitsubishi Electric were victims of hackers in 2020, and Olympus was also made to suspend operations in Europe, Africa and the Middle East after being a victim of a ransomware attack.

The trend of cyberattacks in Japan is likely to reduce public faith in the company, especially since it has been hacked twice since last year.

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