• Thursday, May 23, 2024
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FG mulls expanding its investments in Transcorp Hilton Hotel


The Federal Government is considering expanding its equity stake in Transcorp Hilton Hotel, a move which is being informed by the company’s level of profitability, director general of the Bureau for Public Enterprises (BPE), Benjamin Diki, has said.

Diki said government is now looking at possible further investments in the company because it has consistently paid very high dividend for the past five years, which the Federal Government has also enjoyed as a shareholder.

Diki was speaking at the public presentation of the Transcorp Hilton Hotel’s Initial Public Offer (IPO) in Abuja.

“In fact, government is considering investing further in this business. That is to tell you the level of profitability and we recommend Transcorp Hilton Hotel’s shares to every Nigerian,” he stated.

Dikki described the privatisation of Transcorp Hilton as one of the best examples of Nigeria’s public private partnership as he noted that government’s 49 percent share holding in the company is now being diluted because government has not yet taken up its rights issue.

He said the Federal Government has not been able to bring shares of the other privatised companies to the Nigerian public because it is not yet confident of their fundamentals.