Three Investors In Talks With AMCON To Acquire Aero Contractor-Report

New reports suggest three investors are currently in talks with the Asset Management Corporation of Nigeria to acquire Nigerian aviation company Aero Contractor.

According to a report coming from The Punch, citing an industry source, the investors had met with the AMCON officials on Sunday on the possibility of acquiring the airline.

Capt. Ado Sanusi, the Managing Director of Aero Contractors, confirmed the information, saying that the investors were looking at all the assets of the airline including its maintenance, repair and overhaul facility.

“There are so many investors that have come forward,” Sanusi said. “They are looking at all the core assets.”

As per the report, the airline had attracted 19 investors since it was acquired in 2016 and the number had been narrowed down to six and later three.

The report further stated that Arik Air, which was taken over by AMCON in 2017, is yet to find an investor. Arik Air did not attract any known investors except a Chinese company that showed interest in March 2017. The Chinese firm opted out of the investment talks after it learned of the airline’s debt profile. As per reports, the Chinese investors instead invested in African World Airlines, a Ghana-based airline.

Mr. Ayo Obilana, an aviation expert and the Chief Executive Officer of Selective Securities International Limited, said investors aren’t willing to invest in the nation’s aviation industry due to the lack of transparency, due diligence and policy summersaults on the part of the government.

Obilana recommended that the government will need to show the sincerity of purpose as well as consistency in its policies to change the poor perception of investors.

“In Nigeria, government policies change and because of this, a lot of people are very reluctant to put their money in such an economy,” the aviation expert said.