WEST POWER AND GAS LIMITED {WPG} ACQUIRE EKO PHCN...

FOLLOWING the expiration of deadline to pay the 75 per cent remainder of the bid for various Power Holding Company of Nigeria (PHCN) companies, one of the bidders, West Power & Gas Limited (WPG), the Nigerian Power Investment Holding Company and preferred bidders for the Eko Electricity Distribution Company Plc (Eko Disco), announced the completion of payment for the acquisition of a 60 per cent stake in Eko Disco.
The balance payment of $101.25 million was made to beat the deadline as set by the Bureau of Public Enterprise (BPE), having paid the initial 25 per cent deposit of $33.75 million earlier.
The total transaction value for the acquisition of 60 per cent stake in the company is $135 million.
The company said it had risen close to $500 million in equity and debt financing to fund the acquisition of the Eko Disco and the significant rehabilitation and transformation work required to improve distribution network infrastructure and operations.
Meanwhile, the company said $250 million had been allocated to rehabilitation, while an additional $48 million was earmarked towards a power purchase agreement with Nigerian Bulk Electricity Traders (NBET).
Commenting on the completion of payment, chairman of WPG, Charles Momoh, stated that “today marks a tremendous milestone; and a major step forward towards the completion of the most significant privatisation of government assets in Nigeria’s history. The success of the power transformation programme is critical to the future development of Nigeria. WPG, along with the other preferred bidders, fully appreciate the magnitude of the task before us and are honoured to have been selected. As a sector, we must work together to ensure we achieve the desired results.
“As well as securing the finance to complete the acquisition, WPG has brought together a world- class team of local and international industry experts to implement the rehabilitation and expansion programme. We look forward to the completion of the acquisition process and all matters to be resolved so we can begin the task of transformation of the power sector in the country