A significant transformation is underway in 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 transit into a spread of recent offers that may contain capital funding in infrastructure tasks to attain a variety of providers 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 of the DisCo, Babatunde Lasaki, mentioned Transgrid Enerco, is coming with pedigree and has unmatched potential and technical capability to ship dependable vitality effectivity and to assist obtain plenty of targets which the DisCo has outlined.
Lasaki, mentioned there are constructive expectations being envisaged from the deal, including that essential buyer expectations at the moment are set to be realization.
In accordance him, the acquisition will additional reinforce and improve present circumstances and enhance service supply in addition to enhance on infrastructure deployment.
West Energy & Gasoline 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 fee of N180 billion, whereas the remaining N180 billion was secured by means of financial institution ensures to offer deferred fee assurance to the sellers.
The money fee 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.
Ultimate execution and signing of the transaction paperwork befell on the George Lodge, formally concluding months of negotiations and due diligence.
Timing Influenced by Tax Concerns.
Events concerned had been eager to shut the deal forward of the implementation of Nigeria’s revised capital good points 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 had been largely 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 buyers centered on vitality infrastructure improvement. Members embrace Stanbic IBTC Infrastructure Progress Fund (SIIF), North-South Energy Firm Restricted (NSP), and Axxela Restricted.
