Quest Electricity Pays N19 billion to Acquire Yola Electricity Company
- Yola Electricity Distribution Company now has a new owner, Quest Electricity Nigeria, who dropped N19 billion to acquire the latter
- The government asset is located in the Northern area, and Adamu Mele, the chairman of Quest Electricity, acknowledged the insecurity in the area
- Quest Electricity is expected to spend N28 billion on Yola Electricity Distribution Company in the next two years, complementing the N19 billion paid
Quest Electricity Nigeria has paid N19 billion to acquire Yola Electricity Distribution Company despite the insecurity in the area of its operation in Northern Nigeria.
Adamu Mele, the chairman of Quest Electricity said it would overcome the insecurity through upgrade of Yola electricity infrastructure within a short time.
Aside from the N19 billion paid to acquire the electricity distribution company, Quest Electricity has also made a commitment of N28 billion, which would be invested over a period of two years.
Source: Getty Images
What you need to know about investment
Alex Okoh, the director-general of Bureau of Public Enterprise, said the investment from Quest Electricity would ensure extensive upgrade of electricity distribution network of the company to ensure financial viability.
Okoh further stated that customer base would rise by 50 percent to 596,650 clients from 396,650, while energy supply will be boosted to 1,714 Gigawatt Hours (GWh) from 1,305GWh.
Further commenting on the deal, he explained that:
“Moreover, it is a clear indication that there is still a significant level of interest on the part of investors in the Federal Government’s reform and privatisation programme,” he said.
“Notwithstanding the challenges in the power sector and the reaction that has trailed the privatisation process, this continued interest shows that the Federal Government took the right decision in reforming the power sector.
CribMD acquires Charisland Pharmaceutical after fund raising
In related acquisition news, Nigerian-based digital health platform, CribMD, has acquired Charisland Pharmaceuticals as the startup plans to expand its reach across the country.
CribMD financed the acquisition with the N1.06 billion it raised one month ago. The e-health startup will incorporate the services of Charisland into its own.
It was gathered that Charisland was sold because the owners plan to exist the health sector of Nigeria and relocate to their base in Canada.
Source: Legit.ng
