Message Lun 25 Fév 2013 16:21

Copperbelt Energy to Acquire Abuja Electricity 60% Stake for

ANN Utility Company Limited, a 50% joint venture of the Copperbelt Energy Corporation PLC has signed an agreement to acquire a 60% interest in the Abuja Electricity Distribution Company.

The agreement was signed in the Nigerian capital, Abuja, on Thursday 21st February, between KANN Utility Company Limited, the Bureau of Public Enterprises and the Ministry of Finance of Nigeria.

The consideration payable for the 60% interest in AEDC is US$164 million, out of which 25% which is about US$41 million is payable within 15 days of signing the Agreement, with the balance of 75% which is US$123 million payable after six months.

The financing plan for the acquisition has been developed with Standard Bank of South Africa, and it is intended to finance the acquisition with a combination of debt and equity.

The transaction is expected to be finalised and shares transferred when the final payment is made which is anticipated to be around August 2013.

KANN, comprising CEC PLC and XerXes Global Investments as the other joint venture partner, was confirmed as preferred bidder to acquire AEDC in November 2012 following a rigorous international bidding process that commenced with the submission of an Expression of Interest in March 2011, and submission of a bid on 31st July 2012.

AEDC has a franchise for distributing electricity in four states, comprising the Federal Capital Territory of Abuja, Niger State, Kogi State and Nasarawa State.

Serving 133,014sq km with a population of 10.5 million people in 2.3 million households, the AEDC covers a relatively lightly populated area dominated by the Federal Capital.

It has around 600,000 customers and an average electrification rate of 27%.

Approximately 3,000 people are employed by AEDC.

AEDC purchases power from the Nigeria Bulk Electricity Trading Plc and is connected to various power generation plants by the Transmission Company of Nigeria.

During the interim period, preparations will be made to take over the management of AEDC.