CEC Africa Investments Limited has accused Xerxes Global Investment Limited of breaching its agreement that led to the acquisition of Abuja Electricity Distribution Company. Both companies agreed to pay $41 million for their ownership of the DisCo but Xerxes Global Investment has defaulted on its part, asking CEC Africa Investment to consider its goodwill as a contribution.
According to a report, Xerxes Global failed to fulfil its monetary commitment to the acquisition which occurred in 2013. When the deal was signed, the company was said to have pledged half of its equity share in KANN Utility Company Limited to CEC Africa Investments as security.
Both Xerxes Global Investment and CEC Africa Investment are part of KANN Utility Company Limited, a consortium company that acquired Abuja Electricity Distribution Company. They are the major shareholders of the DisCo with 60% shares while the government owns 40%.
Does goodwill buy company? Punch reported that the Chairman, Xerxes Global, Ambassador Shehu Malami, said his goodwill should be considered as the company’s contribution. According to him, his goodwill was not valued by CEC Africa Investment.
Malami said his goodwill guaranteed the sale of Abuja Electricity Distribution Company to KANN Utility Company. He added that greed was behind the crisis rocking KANN. However, the Managing Director, CEC Africa Investment, Emmanuel Katepa, said goodwill doesn’t buy a company.
Katepa said the goodwill didn’t lead to the acquisition of the Abuja DisCo as claimed by Malami. He said Xerxes Global investment had left his company to bear the burden of the $41 million acquisition fee alone without showing any desire to meet its own financial obligation which is to be paid to the Bureau of Public Enterprises (BPE).
“Till date, Xerxes has not shown any capacity to repay its part of that obligation to CEC Africa, six years after the privatisation.
“Yet it wants to claim major ownership of the AEDC but has failed to fulfil any financial obligation and has left the business risk on CEC Africa.”
Katepa added, “Ambassador Shehu Malami failed to address the central issue which remains that he and his organisation are claiming shares for which they have failed to pay and show no capacity to pay.
“In recognition of its failure to pay its share of the acquisition cost in 2013, Xerxes even pledged to CEC Africa, as security, half of its equity share in KANN.”
Senate calls for the liberalization of cement policy to crash the price of the commodity
The Senate also tasked the FG on providing more industrial incentives to bring new players into the cement industry.
The Nigerian Senate has called for the liberalization of Nigeria’s cement policy to boost production and subsequently crash the price of the commodity in the country.
This motion was raised by Senator Lola Ashiru at today’s senate plenary, the senator also tasked the Federal Government on providing more industrial incentives to bring new players into the cement industry, in addition to the liberalization of the cement policy in Nigeria.
Ashiru explained that to reduce the price of cement and in extension, other building materials in the country, the Federal Government needs to provide an enabling operating environment that will encourage new entrants in the country.
The Senate in conclusion called on the FG to provide more industrial incentives and protections such as concessionary loans and larger tax incentives to encourage new entrants and expand the national cement production infrastructure, as this boost in production will lead to a downward review of cement price in Nigeria.
What industry leaders are saying
Earlier this year the founder of BUA Group, Abdulsamad Rabiu, called for the liberalization of Nigeria’s cement policy to boost production and reduce the price of the commodity.
The billionaire philanthropist faulted the belief that Nigeria is self-sufficient in terms of cement production, noting that recent statistics and figures on Nigeria’s population and cement production do not support this status of sufficiency in cement production as stated by some individuals.
He attributed the high price of cement products in the country to the supply gap which exists in the country, as the few producers who currently operate in the country are unable able to meet the country’s huge and growing demand.
The Group Executive Director, Strategy, Portfolio Development and Capital Projects, Devakumar Edwin, explained that the demand and consumption of cement in the nation currently outstrips supply, and this can be pegged on the growth in the country’s population, and the strong appetite for real estate investment and construction in the country.
He revealed that a supply gap of about 40% exists in the country’s cement market and that all players in the industry are working hard to level production with the rising demand in the country.
Paypal’s Venmo now permits cryptocurrency trading
Venmo will support four different cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
Venmo, a mobile payment service owned by PayPal has announced that it has started allowing users to buy, hold and sell cryptocurrencies on its app. Just like PayPal, Venmo will support four different cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, and users can carry out transactions with as little as $1 on the app
Founded in 2009, Venmo has over 70 million users and it is one of the most popular payment channels in the US. The payment platform processed around $159 billion in payments last year.
Since the app functions like a social network, adding cryptocurrency will offer a more user-friendly feel for people who love buying and selling crypto.
As bigger companies show more interest in cryptocurrency, there will be wider adoption of virtual currencies in future. Venmo is the latest payment app that is offering support for cryptocurrency on its platform.
Paypal, the parent company of Venmo is one of the most active companies in the crypto space as it allows users to buy, sell and hold cryptocurrencies in their digital wallets. Paypal users can also spend their coins at millions of merchants globally.
Crypto on Venmo is enabled through PayPal’s partnership with Paxos Trust Company, a regulated provider of cryptocurrency products and services.
What they are saying
Darrell Esch, Venmo’s Senior Vice President and general manager said “Our goal is to provide our customers with an easy-to-use platform that simplifies the process of buying and selling cryptocurrencies and demystifies some of the common questions and misconceptions that consumers may have.”
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
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