NAHCO shareholders seek renewal of pact with RHG

Shareholders of the Nigerian Aviation Handling Company (NAHCO, Aviance) have called for the reinstatement and renegotiation of the Management Support Services Agreement with the Rose Hill Group (RHG).

RHG is one of the institution investors of NAHCO Aviance and the pact to provide management services was cancelled in the second quarter of 2016.

The shareholders who spoke at the company’s 36^th Annual General Meeting in Abuja said the Management Services Agreement if renewed will add value and bolsters the company’s growth and profitability.

“This types of services are entered in order to grow a company. Most of the multinational companies have this kind of arrangement, and that is why they are growing. It is all based on value addition to the company. So on behalf of the shareholders I am calling for the immediate renewal of the Agreement with Rose Hill Group,” Chairman of the Shareholders’ Trustees Association of Nigeria Mukhtar Mukhtar said in an interview.

He said the Management Service Agreement has helped increase the company’s asset.

He said the RHG has brought   their expertise to bear on NAHCO as against the hitherto weak bureaucratic system that was in practice, adding that diversification to other business areas were some of the value the RHG added.

In the same vein, one of NAHCO’s shareholders Goodluck Akpore of the Onitsha Zone Shareholders Association also concurred that the technical management service agreement with RHG that was terminated last year be renewed.

Mr. Akpore said the successes recorded were laid by the former chairman and his predecessors, adding that shareholders were satisfied with such foundation and effort for diversification, adding that the feats were achieved largely due to the Management Services Agreement.

He said if the RHG service is left to go it would have a negative impact on the company.

Shareholders said the RHG has helped NAHCO in deepening strong corporate governance, as well as in its diversification strides.

National Coordinator of the Proactive Shareholders Association Oderinde Taiwo commended the Board and Management for the dividend said the Board and Management should consider reinstating the management pact with RHG, saying the company needs such service now more than before.

The Nahco Board had approved 22k dividend per every share held by shareholders at its 36th Annual General Meeting (AGM) last week in Abuja.

The company also declared a Profit After Tax of N583 million and a turnover of N7.8 billion for the year end December 31^st, 2016