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AMCON to Sell Peugeot Plant to Dangote, 2 States

By Modupe Gbadeyanka

Talks are ongoing on the sale of the car assembly plant of Peugeot Automobile Nigeria (PAN) Ltd to billionaire businessman, Mr Aliko Dangote, and two states.

The sale of the car assembly firm is being carried out by the Asset Management Company of Nigeria (AMCON), an agency set up by the Federal Government in 2010 to acquire companies in Nigeria undergoing financial crisis before reselling them.

On Friday, the Chief Executive Officer of AMCOM, Mr Ahmed Kuru, informed Reuters that, “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 of Nigeria (CBN).”

It was gathered that Mr Dangote made a bid to acquire the car plant alongside Kaduna and Kebbi States and control majority stakes in PAN.

PAN Ltd was acquired by AMCON during the banking crisis, by buying up its debt and converted it to equity. But now, AMCON wants to sell off the auto firm, located in Kaduna State and has PSA Peugeot Citroen as its technical partner with a capacity to assemble 90,000 cars a year.

The company is said to worth over $49 million according to its last valuation.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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