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Strides Group acquires mortgaged assets of Rivers Vegetable Oil

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Corporate Company Secretary of Strides Group, Mr. Paul Alimele-Morgans (left); Chairman, Strides Group Mr. Moritz Abazie; Chief Executive Officer, United Capital Trustees, Mrs Tokunbo Ajayi; Regional Head, South-South, Wema Bank, Mr. Edah Emmnuel; and Head, Debenture, United Capital Trustees, Mr Chris Ohuonu, through the signing of Memorandum of Understanding for the acquisition of Rivers Vegetable Oil (RIVOC) in Lagos… on the weekend.

Strides Group, homeowners of Strides Energy and Maritime Limited (SEML), on the weekend acquired the mortgaged assets of the Rivers Vegetable Oil firm Limited(RIVOC).

The multi-billion naira deal was signed in Lagos by UBA Capital Trustees on behalf of a consortium of 4 banks consisting of Guaranty Trust Bank (GTB), United Bank for Africa (UBA), Zenith and
Diamond bank.

Chairman of Strides Group, Mr Moritz Abazie mentioned the deal will save 500 direct jobs and return greater than 5000 oblique employment to Nigerians.

He mentioned with the gross sales settlement signed, the Fast Moving Consumer Goods (FMCG) manufacturing plant, would begin manufacturing in two months time.

Abazie described the plant as one of the main fast-paced shopper items manufacturing amenities within the nation, saying the deal would help authorities’s effort at rising the sector in view
of demand for regionally manufactured items.

He defined that the acquisition was half of the corporate’s progress trajectory and designed to help Federal Government’s imaginative and prescient of diversifying the Nigerian financial system and creating jobs.

“We are leveraging our capital strength, talents and good reputation, to take advantage of identified opportunities in the food and other fast moving consumer goods, manufacturing and distribution sectors,”
mentioned Abazie.

“In accordance with this diversification goal, we have acquired the entire production assets of Rivers Vegetable Oil Company Limited in a multi-billion naira transaction, as a fast route to actualizing our market entry strategy,” he defined.

The Chairman of Strides Group additional defined that RIVOC was the third largest vegetable oil processing firm in Nigeria and the only largest producer of crude palm kernel oil and palm kernel extractions till its fortunes immediately dwindled in 2013. But he assured that Strides Group would surpass earlier feats of the
firm.

“RIVOC provided hundreds of direct and thousands of indirect employment to Nigerians and had become a very formidable corporate entity, with visible and significant contributions to the industrial and economic growth of the country,” mentioned Abazie.

But the fortunes of the corporate went down in 2013, attributable to divestment by its main international traders fearing financial downturn in Nigeria, which ultimately commenced in 2014. This downturn led to loss of over 500 direct and hundreds of oblique jobs, that is along with the loss of income accruing to the federal government at each the federal and state degree.”

He hinted that intervention of Strides Group would restore the misplaced jobs and create new ones by way of its growth programmes, whereas income to the federal government can be boosted by elevated tax contributions arising from expansions and better capability utilisation.

Chief Executive Officer of the United Capital Trustees; the trustee of the Consortium, Mrs. Tokunbo Ajayi, expressed delight that an indigenous agency acquired assets of the previous State-owned enterprise.

“We are happy an indigenous company like Strides Group took over the plant, we look forward towards a speedy conclusion of the transactions and the speedy revival of the business complex,” shw mentioned.

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