Determined to finish strong come May 29 this year, the Delta State Governor, Dr. Emmanuel Uduaghan, on Tuesday divested the interested of the state in Transcorp Ughelli Power Limited and Midwestern Oil and Gas Company.
The governor, who approved the sale of its shares in the two firms, said the move was to shore up the dwindling allocation from the Federation Account.
According to Uduaghan, the price of crude oil has led to a huge drop in the statutory allocation to the state and was affecting his determination to deliver effectively on his electoral mandate.
His Commissioner for Information, Chike Ogeah, on Tuesday 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 raining day.
Ogeah said the decision to sell the shares succinctly followed the provisions of the Fiscal Responsibility Act before it was tabled at the State Executive Council meeting, which approved the commencement of the process of the divestment in the two companies.
“Given the very significant decline in the resources available to the state government as a result of the low price of crude oil, the government decided to sell its shares in Transcorp Ughelli Power Limited and Midwestern Oil and Gas Company Limited,” he explained.
On the 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”.
The Commissioner said the existing shareholders in the two companies will exercise the right of first refusal in deference to the articles of association of both companies.
He assured Deltans that “by all market indices, what will be realised from the sale will be a significant profit from the earlier investment”.
Insisting that the amount mentioned as realizable is only a benchmark based on the evaluation of current market trends by the financial advisers, Ogeah said: “In effect, actual sale could see more money being realised. It could also be less.”