Dangote Guns For Peugeot Nigeria

BEVERLY HILLS, March 17, (THEWILL) – Aliko Dangote, Africa's richest man, with the Bank of Industry (BoI) and the Kaduna and Kebbi state governments, has made a bid for a majority stake in automaker Peugeot Automobile Nigeria (PAN) Limited.

This was disclosed by Nasir El-Rufai, Governor of Kaduna state, on Thursday, adding that Dangote is a key member of a consortium that has applied to acquire the majority stake in the automobile company currently owned by the Asset Management Corporation of Nigeria (AMCON).

“We have submitted bids for the car-maker with Aliko Dangote on board together with BoI, Kebbi and Kaduna State, we are confident our bid will sail through,” El-Rufai disclosed at the launch of the Bank of Industry youth empowerment scheme (YES).

PAN, founded in 1972, is a joint venture between the Nigerian government and the French automaker with its headquarters in Kaduna, Nigeria.

The company manufactures and markets motor vehicles under the brand name Peugeot and has Peugeot Citroen PEUP.PA as its technical partner with a capacity to assemble 240 cars a day.

In November 2006, PAN was sold to ASD Motors, with a 54.78 percent stake, in line with government's aim of building a stronger and diversified economy.

The company struggled to keep PAN afloat and accumulated bad loans in the process which led to its acquisition by AMCON with a controlling stake in the company which currently stands at 79.3%.

In January AMCON announced it was willing to sell its stake in the company and invited bids from investors in order to revamp the presence of the company in Nigeria.

Story by David Oputah