Nigeria’s ‘bad bank’ says nearing sale of Peugeot car assembly plant to Dangote | Reuters

By Oludare Mayowa

LAGOS May 26 The Asset Management Company of
Nigeria (AMCON), the country’s ‘bad bank’ set up following the
banking crisis, is close to selling Peugeot Automobile Nigeria
(PAN) Ltd, a local car assembly joint venture, to Africa’s
richest man, Aliko Dangote, and two Nigerian states.

“We have concluded all processes on the bids since about two
months ago, all we are waiting for (now) is the approval of the
central bank,” Ahmed Kuru, AMCON’s chief executive, told Reuters
on Friday.

PAN, a Nigerian vehicle assembly plant located in Kaduna
state, has PSA Peugeot Citroen as its technical
partner with a capacity to assemble 90,000 cars a year,
according to its website.

Dangote, in alliance with the states of Kaduna and Kebbi and
the Bank of Industry (BOI) development bank made a bid to
acquire a majority stake in PAN last year as AMCON seeks to sell
off some of the assets it acquired in the wake of the banking

Dangote’s eponymous group of companies is active in cement,
oil, food and sugar, and is expanding into farming.

The automaker is worth over 15 billion Nigerian naira ($49
million) according to its last valuation, Kuru said, but
declined to name the company Dangote and his partners are using
to acquire the automaker.

AMCON, set up in 2010 to clean up the banking system
following a $4 billion rescue of nine lenders that came close to
collapse, took over PAN after buying up its debt and converting
it to equity.
($1 = 304.4000 naira)
(Reporting by Oludare Mayowa; Editing by Paul Carsten)

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