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Alscon - BFIG threatens legal action over Rusal takeover

Metal News - Published on Wed, 14 Feb 2018

Image Source: guardian.ng
All Africa reported that BFIGroup has threatened legal actions against the Minister of Mines & Steel Development, Kayode Fayemi, and the Director General, Bureau for Public Enterprises, BPE, Alex Okoh, over their continued defiance of the Supreme Court's ruling on the Aluminium Smelter Company of Nigeria, ALSCON, Ikot Abasi.

Mr Jimmie Williams the Executive Vice President/General Counsel of BFIG, wrote to Messrs. Fayemi and Okoh alleging "extreme injurious falsehood" concerning their recent announcement of the signing of a fresh agreement with UC RUSAL to take over the plant.

On January 21, 2018, Mr Fayemi announced the signing of a "renewed Share Purchase Agreement, SPA" between BPE and the Russians over takeover plans expected to become effective in six months' time.

The Minister's spokesperson, Mr Olayinka Oyebode, who issued the statement said the new agreement was signed by Mr Okoh and the Chief Executive Officer/member, Board of Directors of UC RUSAL, Vladislav Soloviev, in Mr Fayemi's office.

Mr Oyebode said other witnesses included the Minister of State in the ministry, Abubakar Bwari; Russian Ambassador to Nigeria, Nickolai Udovichenko; Managing Director of ALSCON, Dimitry Zavyaiov, and Head of Legal, UC RUSAL, Piter Maxsimov.

He said the agreement followed the approval of an out of court settlement of the lingering dispute over the ownership of ALSCON by the National Council on Privatization, NCP during its meeting of August, 2017 chaired by the Vice President, Yemi Osinbajo.

In announcing the new agreement, Mr Oyebode said the exercise "ends a decade of legal tussle with BFIG over the ownership of ALSCON."

But, in a letter on February 7, to both the Minister and BPE DG, Mr Williams denied the Minister and BPE DG negotiated any mediated resolution of its outstanding disputes over ALSCON. He described their roles in the latest agreement signing as "extremely disrespectful and disturbing."

During the agreement signing, the Minister was quoted as saying the Russians were "best placed to reactivate ALSCON", while BPE DG reportedly commended him for his "commitment to ensure the success of the negotiation with the Russians."

"As you are both well aware, there has not been any settlement involving ALSCON," Mr Williams said in his letter titled: "Publications of Injurious Falsehoods Against BFIGroup Corporation Concerning the Aluminum Smelter Company of Nigeria Share/Sale Purchase Agreement."

Mr Williams added that "Our litigation over the enforcement of the Supreme Court's order is continuing, and the Minister has not negotiated any mediated resolution of our outstanding disputes."

He urged the Minister and the BPE DG to immediately retract their statements. Mr. Williams warned of serious legal consequences if they fail to do so. He noted that their "continued unimpeded publications of these false reports are extremely injurious" to BFIG.

The BFIG counsel threatened that "Please be respectfully advised that we will resort to additional legal processes, if we do not receive a positive response to our requests."

Source :

Posted By : Amom Remju on Wed, 14 Feb 2018
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