Ekiti Govt. Hands Over Ire Clay Products Factory To Core Investor

May 19, 2022

…says partnership will create jobs, boost IGRS

The Government of Ekiti State has officially handed over one of its biggest commercial enterprises, Ire Clay Products Limited, to a private investor in a bid to ensure its continued smooth running, result-oriented management and long-term sustenance.

Performing the official handover at a ceremony at the factory premises in Ire-Ekiti on Thursday, Governor Kayode Fayemi explained that the step was aimed at galvanizing the company for more profitability and continuity of operations.

Represented by the Deputy Governor, Otunba Bisi Egbeyemi, the Governor said the handover was a demonstration of its administration’s resolve to partner with the private sector to ensure that its business enterprises are run profitably.

The core investor, New Frontier Developments Limited, has acquired 60 per cent stake to run Ire Clay Products Company under an arrangement that would be beneficial to the investor and the state government.

Dr. Fayemi also listed the gains of the handover to include enhancing the company’s capacity to meet the demands of its products, serving as a source of Internally Generated Revenue (IGR) through taxation and providing more gainful employment for the people of the state.

He added that the state government had the factory in mind while deciding on the reconstruction of the Ilupeju-Ire-Igbemo-Ijan Road to allow its customers in moving the finished goods from the factory to where they are needed.

The Governor recalled the efforts of its first administration in bringing back the factory to virility with the partnership with the Odua Investment Company Limited leading to the commencement of commercial production in June 2014.

Dr. Fayemi expressed regrets that the business enterprise suffered abandonment and neglect under the succeeding Fayose Administration noting that it was the return of his second administration that saved the company from going under.

He added: “I want to salute the courage of the new investor who has found faith to believe that and drive this business with us, despite the current economic uncertainties that pervade the economy of the country at this moment. We are ready to partner with you to succeed in this business for the smooth running of the factory.

“I urge the management of the company to foster a good community relationship with the host community and also assist the state through the engagement of our qualified youth in the employ of the company. This symbiotic relationship will go a long way in endearing the people to the company.

“As this administration draws to a close, it is our desire that we conclude all the strategic partnership that are already ongoing on some of our prized assets so that more revenue can be generated on them for the overall benefit of the people of Ekiti State.”

The Governor performed the symbolical handover of the factory to the Chairman of New Frontier Developments Limited, Mr. Hassan Usman, amidst applause by government functionaries, guests and members of the Ire Ekiti Community were present at the ceremony.

Earlier in his remarks, the Group Managing Director/Chief Executive Officer of Fountain Holdings Limited, Mr. Seyi Ayeleso, noted that the Fayemi Administration explored the option of divesting from Ire Clay Products Limited in order to infuse fresh financial and managerial capabilities into the operations of the factory.

Mr. Ayeleso said this made the government to appoint SIAO Partners as Transaction Advisors to the divestment transaction which supervised a thorough process of inviting, prequalifying and selecting a preferred investor spanning nine months before the official handover.

He said: “I am glad to inform you that the selection of the investor and negotiation and fulfillment of the condition precedent to the conclusion of the divestment transaction followed the ethics of global best practices.”

Mr. Ayeleso stressed that New Frontier Developments Limited was found ad the most suitable in terms of financial standing, managerial capability and industry exposure with its recommendation approved by the Boards of Fountain Holdings Limited, O’dua Investment Limited and Ire Clay Products Limited.

 

Last modified: May 19, 2022

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