A big transformation is underway within the Eko Electrical energy Distribution Firm (EKEDC) following Transgrid Enerco Restricted acquisition of a 60 per cent controlling curiosity within the firm.
Within the coming weeks, the corporate will transition into a spread of latest offers that will contain capital funding in infrastructure tasks to attain a variety of companies in addition to effectivity enhancements.
LEADERSHIP gathered that the transaction, which is valued at about N360 billion, was initially anticipated to shut by April 2025, and was finalised on December 30, making it one of many largest privately negotiated takeovers in Nigeria’s electrical energy distribution sector for the reason that 2013 privatisation.
Confirming the event to our correspondent, spokesperson for the DisCo, Babatunde Lasaki, stated Transgrid Enerco, is coming with pedigree and has unmatched potential and technical potential to ship dependable vitality effectivity and to assist obtain various objectives which the DisCo has outlined.
Lasaki stated constructive expectations are being envisaged from the deal, including that essential buyer expectations are actually set to be realised.
In accordance with him, the acquisition will additional reinforce and improve present situations, enhance service supply, and improve infrastructure deployment.
West Energy & Fuel Restricted (WPG), the previous core investor, had acquired the 60 per cent stake in Eko DisCo for about $135 million in the course of the 2013 energy sector privatisation train.
Transgrid Enerco, has reportedly made an upfront money cost of N180 billion, whereas the remaining N180 billion was secured via financial institution ensures to offer deferred cost assurance to the sellers.
The money cost was settled in two instalments: N150 billion was paid earlier within the week of the transaction’s completion, whereas the ultimate N30 billion tranche was paid on December 30.
Remaining execution and signing of the transaction paperwork came about on the George Resort, formally concluding months of negotiations and due diligence.
Timing Influenced by Tax Concerns.
Events concerned have been eager to shut the deal forward of the implementation of Nigeria’s revised capital beneficial properties tax regime, which is scheduled to take impact on January 1, 2026.
The acquisition stems from a Share Buy Settlement (SPA) signed in January 2025 between Transgrid Enerco and WPG, the outgoing majority shareholder.
Not like a number of earlier adjustments in electrical energy distribution firm possession in Nigeria, which have been primarily pushed by mortgage defaults or regulatory enforcement actions, this transaction was purely a business and strategic acquisition.
Transgrid Enerco is a consortium of strategic and institutional traders centered on vitality infrastructure improvement. Members embody Stanbic IBTC Infrastructure Development Fund (SIIF), North-South Energy Firm Restricted (NSP), and Axxela Restricted
