NNPC takes over 51% shares of Stallion Property

The Nigerian National Petroleum Corporation (NNPC) on Monday formally took over the full ownership of Stallion Property Development Company.
Under the arrangement, Federal Government’s 51 percent shares in the residual assets of Stallion Property Development Company were sold to NNPC Pension Fund Limited.
Benjamin Dikki, director-general of Bureau of Public Enterprises (BPE), handed over the certificate of Stallion Property’s 161.814 million shares to NNPC, seven years after the commencement of the privatisation of the company.
According to Dikki, the Bureau at a meeting held on October 31, 2013 sought the approval of the National Council on Privatisation (NCP) for the privatisation of the Federal Government’s 51 percent shares in the residual assets of Stallion Property to NNPC Pension Fund Limited.
“The request was predicated on earlier approval granted in 2006 that the proceeds from the divestment of FG’s 51 percent shareholding in Stallion Property
NNPC takes over 51% shares of Stallion Propertybe used to part bridge the funding gap (about N63 billion then) in the NNPC staff pension fund.
“In line with this strategy, the net proceeds of the first transaction were paid to the NNPC staff pension fund which helped to reduce liabilities. However, there were other unsold assets that did not receive any expressions of interest during the first transaction.
“These assets were to be sold (notionally) to Stallion Property in accordance with the pre-emptive rights provided in the company’s Memorandum and Articles of Association (MEMART).”
In his remarks, Danbello Naadiyalle, managing director, NNPC Pension Fund Limited, noted that the official handing over ceremony signified the conclusion of the privatisation of the 51 percent shares of Stallion Property which hitherto belonged to NNPC.
He assured that the “investments in real estate present a significant portion of pension assets worldwide. The NNPC pension fund plans to within the confines of the law resuscitate Stallion Property and redevelop its areas of core competence in order to restore the company’s lost glory.