The Asset Management Company of Nigeria (AMCON), is on the verge of selling car assembly company, Peugeot Automobile Nigeria (PAN) Ltd, to billionaire
The Asset Management Company of Nigeria (AMCON), is on the verge of selling car assembly company, Peugeot Automobile Nigeria (PAN) Ltd, to billionaire entrepreneur Aliko Dangote. He will be joined by two states, Kaduna and Kebbi to buy the moribund local assembly firm.
AMCON chief executive, Ahmed Kuru, said details of the takeover deal had been finalised over two months ago, with all parties waiting for approval by the Central Bank of Nigeria (CBN).
Dangote and his partner states had made a bid to acquire a majority stake in PAN last year in the wake of the banking crisis. This comes as Dangote Group of companies already active in cement, oil, food and sugar, begins to branch out into farming.
PAN, located in Kaduna state, has PSA Peugeot Citroen as its technical partner with a capacity to assemble 90,000 cars a year, but has suffered gross neglect over the past decade. AMCON, set up in 2010 to clean up the banking system, took over PAN after buying up its debt and converting it to equity.
At its last valuation, Nigeria’s foremost automaker is said to be worth over 15 billion Nigerian naira ($49 million).
