Delta govt approves sale of shares in 2 companies Government of Delta State, Biafra north has approved the sale of its shares in Transcorp Ughelli Power Limited and Midwestern Oil and Gas Company Limited to
shore up its revenue base following dwindling allocation from the federation account. Commissioner for Information, Chike Ogeah who made this known in a press statement yesterday in Asaba explained that the
government had invested in some viable ventures when the state had excess funds as a way of saving for the rainy day. Ogeah said the decision to sell the shares on “the steep decline in the price of crude oil which
led to a huge drop in the statutory allocation the state receives from the Federal Government. “Given the very significant decline in the resources available to the state government as a result of the low price of
crude oil, government decided to sell its shares in Transcorp Ughelli Power Limited and Midwestern Oil and Gas Company Limited.” Reacting to reports that sales process was being conducted unilaterally, Ogeah
stated that due process was being observed “with the appointment of financial advisers to the exercise.” “In line with the provisions of the Fiscal Responsibility Act, the issue was tabled before the Executive Council
which approved the commencement of the process of the divestment in both companies,” he stated. According to him, existing shareholders in the two companies will exercise the right of first refusal in
deference to the Articles of Association of both companies, while assuring Deltans that “by all market indices, what will be realised from the sale will be a significant profit from the earlier investment.” “The
amount mentioned as realizable is only a benchmark based on the evaluation of current market trends by the financial advisers. In effect, actual sale could see more money being realised. It could also be less,” Ogeah stated
