Business Hilights
Tracking Nigeria's Headline Business News Online

Why FG ceded controlling shares of ALSCON to Russian firm, UC Rusal

More facts have emerged on why the federal government gave official recognition to Messrs UC Rusal, a Russian company, as the core investor in the Aluminium Smelter Company of Nigeria (ALSCON), Ikot Abasi, Akwa Ibom State.

Government considered UC Rusal based on its track record in multiple development and expansion of several related factories across the world where it has interest.

Already, both government and the group weekend sealed the renewed Share Purchase Agreement (SPA) in Abuja.

Business Hilights gathered that the renewed SPA was signed during a brief ceremony at the Ministry of Mines and Steel Development, Abuja, and was witnessed by the minister in charge of the ministry, Dr. Kayode Fayemi; Minister of State for Mines and Steel Development, Abubakar Bwari; Director-General, Bureau of Public Enterprise, Alex Okoh; Russian Ambassador to Nigeria, Nickolai Udovichenko; Chief Executive Officer, UC Rusal, Vladislav Soloviev; Managing Director, ALSCON, Dmitry Zavyaiov; and Head of Legal, UC Rusal, Piter Maxsimov.

An official statement by a media aide to the Minister, Olayinka Oyebode, revealed that while Alex Okoh of the BPE signed for the Federal Government, Soloviev signed on behalf of the company.

The signing has therefore rested the protracted litigation that has made the aluminium smelting company unable to operate for almost a decade.

Though UC Rusal had the controlling share, the Federal Government, however, retains 20 per cent equity in the company.

It would be recalled that the final decision was taken at the meeting of the National Council on Privatisation held in August 2017 under the chairmanship of Vice President Yemi Osinbajo, where the council approved an out of court settlement to resolve the lingering dispute through mediation, with the active collaboration of the Ministry of Mines and Steel Development.

ALSCON was incorporated in 1989 with the Federal Government, Ferrostaal of Germany and Reynolds Incorporated of America as shareholders on an equity holding of 70 per cent,  20 per cent  and 10 per cent, respectively.