Post Acquisition Plan: BPE commends Transcorp Consortium

By Odimmegwa Johnpeter

As a testament to the success of the privatisation programme of the Federal Government, the Director General, Bureau of Public Enterprises (BPE), Mr. Alex A. Okoh has commended Transcorp Consortium for its commitment in implementing the Post Acquisition Plan for Transcorp Hilton Hotel.

Okoh made the commendation at the Presidential Villa, Aso Rock, Abuja on Monday, October 14, 2019 during the presentation ceremony of the Certificate of Discharge to Transcorp Hilton Hotel de-listing it from further routine post-privatisation monitoring by the Bureau.

He said that while the Hotel’s customer base increased from 161,241 to 344,613, at the point of privatisation, representing an increase of 113.72%, customer complaints reduced from 406 hours to 72 hours a week; being a reduction of 82.27%.

On investments and growth the Bureau’s Director General disclosed that as at 2017, Transcorp Consortium had injected the sum of N45.79 Billion into a range of improvement and upgrade projects in the Hotel;and increased operational efficiency, as its retained earnings rose to 70.17% of turnover and 254% growth in net assets.

It would be recalled that Transcorp Hilton Hotel was privatised by BPE under the stewardship of the National Council on Privatisation in 2005, with Transcorp Consortium emerging as the Core Investor.  In accordance with the terms of the Share Sale Agreement upon privatisation, the Consortium was required to submit a Post Acquisition Plan, outlining the performance targets to be achieved post-privatisation.

The certificate which was presented by the Vice President, Professor Yemi Osinbajo who is also the Chairman of the National Council on Privatisation (NCP) marked an end of 14 years of comprehensive monitoring of the Hotel’s operations on adherence to best practices in corporate governance, service excellence, customer analysis, operational excellence and investments.

Receiving the certificate, Chairman, Transcorp Group, Mr. Tony Elumelu expressed appreciation to the Federal Government and said it was a landmark event and evidence to the success of privatisation.

He added that the involvement of the private sector in management of enterprises would ensure a progressive improvement in the economic development and address infrastructure deficit in the country.

Elumelu assured that adherence to the Post Acquisition Agreements by private sector operators would ultimately improve public confidence in the privatisation programme and pledged continuous support towards the privatisation programme.