Transcorp-led investors acquire 60% stake in Abuja DisCo

Bisola David
Bisola David
Transcorp-led investors acquire 60% stake in Abuja DisCo

Abuja Electricity Distribution Company has been purchased by a group of investors led by Transcorp Power Limited for $60 million.

The Managing Director/Chief Executive Officer (MD/CEO) of AEDC will now be Christopher Ezeafulukwe, who is currently the MD/CEO of Transcorp Power Limited.

The hiring of Ezeafulukwe is anticipated to play a significant role in reviving AEDC, the main energy supplier for Abuja’s Federal Capital Territory.

The statement reads: “Ezeafulukwe was the MD/CEO of Transcorp Power Ltd., Ughelli, a 972-MW thermal plant, prior to his appointment as the MD/CEO of AEDC.”

Transcorp Power Ltd., which is the first successor company from the 2013 power privatization program to be released from post-privatization monitoring by the National Council on Privatisation after exceeding the Council’s expectations, has consistently led the Nigerian power sector under his leadership.

“Transcorp Group’s ability to restructure an industry is seen in its acquisition of the Ughelli Power Plant during the 2013 privatization of the power sector.

The plant’s capacity, which was 160 MW when it was acquired, expanded by 227% to 680.83 MW in just 4 years, exceeding the Bureau of Public Enterprises’ 670 MW five-year target.

Ezeafulukwe is anticipated to be replaced as MD of Transcorp Power by the CEO of Transcorp Energy, Peter Ikenga.

AEDC was taken over by the United Bank of Africa in December 2021 because Kann Consortium, its largest shareholder, was unable to pay the bank the $122 million debt it owed.

In 2013, Kann Consortium purchased AEDC with a loan from UBA, giving it a 60 percent ownership position in the DisCo.

However, the bank announced in April 2023 that it will sell AEDC in order to pay off the $122 million loan.

The Transcorp-led group received approval from the national council on privatization to be the preferred bidder for AEDC in May 2023.

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