Transgrid Enerco Buys 60% Stake in Eko Electricity DisCo, Acquisition Details Emerge
- Transgrid Enerco Limited has acquired a 60% equity stake in Eko Electricity Distribution Company
- Stanbic IBTC Infrastructure Growth Fund, North-South Power Company Limited, and Axxela Limited make up the consortium
- Depending on regulatory approvals, the $200 million deal is expected to be completed in April 2025
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Transgrid Enerco Limited, a consortium comprising Stanbic IBTC Infrastructure Growth Fund (SIIF), North-South Power Company Limited (NSP), and Axxela Limited, has acquired a 60% equity stake in Eko Electricity Distribution Company (Eko DisCo).
The $200 million deal is anticipated to be finalised in April 2025, pending regulatory clearances. The agreement represents a major milestone in Transgrid's growth in the Nigerian power industry.
West Power and Gas Limited (WPG), the parent company of Eko Disco, signed a share purchase agreement on January 21, 2025, following Transgrid Enerco's payment of a commitment fee.
For the consortium members, the acquisition represents a strategic victory. With direct control over Eko Disco's operations and finances, North-South Electricity Company, the owner of the Shiroro Dam, will strengthen its position in the electricity value chain.
Businessday reported that this action offers Axxela Limited, a well-known natural gas distributor, the chance to grow into electricity distribution and obtain immediate access to cash flow.
In addition to owning interests in power generation projects, such as the Akute and Alausa power plants, and embedded power partnerships with Eko and Ikeja Discos, which together have a 140 MW capacity, Axxela already runs a 360-kilometre natural gas network.
The agreement supports the goal of Nigeria's largest infrastructure private equity fund, Stanbic IBTC Infrastructure Growth Fund, which is to engage in projects with significant cash flow potential and develop the nation's power industry.
WPG chairman Charles Momoh called the purchase an important milestone for Eko Disco, adding that the new owners will take advantage of opportunities in Nigeria's changing electrical market.
“Transgrid Enerco will, upon obtaining the relevant regulatory approvals, capitalise on the positive changes occurring within the fast-evolving Nigerian electricity market to reposition Eko Disco to access new sources of capital,” Momoh said.
The consortium intends to reposition Eko Disco to increase operational effectiveness and financial stability and guarantee a more reliable power supply for its clients.
DisCos revenue falls by 5%
Legit.ng earlier reported that A new report shows that revenue for electricity distribution companies (DisCos) operating in Nigeria dropped 5%.
From N171.58 billion collected as revenue in September 2024, DisCos' total revenue dropped 5% to N163.07 billion the next month.
The latest data from the Nigerian Electricity Regulatory Commission (NERC) shows that the total amount DisCos charged customers as electricity bills also dropped 5.4% from N225.8 billion in September 2024 to N213.62 billion in October 2024.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng