FG to earn N124.3bn from sale of YEDC, Afam Power

FG to earn N124.3bn from sale of YEDC,  Afam Power

If the projection sails through, the Federal Government will rake in N124.3 billion from the sale of Afam Power Plc & Afam Three Fast Power Limited (one entity) and Yola Electricity Distribution Company (YEDC), as the bidders have clinched the two assets hitherto listed for privatization. The public commercial/financial bid opening of the enterprises, which

If the projection sails through, the Federal Government will rake in N124.3 billion from the sale of Afam Power Plc & Afam Three Fast Power Limited (one entity) and Yola Electricity Distribution Company (YEDC), as the bidders have clinched the two assets hitherto listed for privatization.

The public commercial/financial bid opening of the enterprises, which took place on Tuesday at the Transcorp Hilton, Abuja in the presence of all bidders, the Bureau of Public Enterprises (BPE), the National Council on Privatisation (NCP), anti-graft agencies and other relevant stakeholders, was the crystallized effort of the government to revive ailing outfits for greater service delivery.

Three firms were pre-qualified for Afam Power Plc out of nine; while six out of six bidders were approved for YEDC.

In the end, Transcorp Consortium emerged the preferred bidder for Afam at N105.3 billion bid price.

It defeated Unicorn Power Consortium and Diamond Stripes Consortium.

For YEDC,  Quest Electricity emerged the sole bidder at N19 billion, as its competitors either failed to submit bids or bidded below the reserved price.

Speaking at the event, the Chairman, Technical Committee of NCP, Mr Muhammad Ahmad said three prospective core investors submitted bids for the acquisition of 100 percent of Federal Government’s shareholding in Afam Power Plc, Afam Three Fast Power Limited; while the financial bid was submitted by a core investor for the acquisition of government’s 60 per cent shareholding in YEDC.

He explained that all the three bidders have been pre-qualified, adding that the Council was interested in the emergence of the highest bidders who should bid above the reserved price.

He, however, noted that winners were subject to endorsement by NCP.

On payment mechanism, Ahmad said the transaction on the enterprises will legally come to a close with the signing of the share purchase agreement and other related documents by each preferred bidder as approved by the NCP.

“Payment will be made in naira through Remita Retrieval Reference (RRR) in favour of BPE. 25 per cent of the purchase consideration is to be made within seven working days from date of signing the share sales and purchase agreement, while the remaining 75 per cent will be paid to the BPE within 180 calendar days after signing the share sales and purchase agreement”, Ahmad explained.

In his remarks at the event, the Director-General of the BPE, Mr. Alex Okoh said the bidders were carefully selected after a thorough due diligence was carried out on them.

He said firms that default to pay within the stipulated time means the first runner up will be considered.

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