West Power & Gas Limited (WPG or the Company), the Nigerian Power Investment Holding Company and preferred bidders for the Eko Electricity Distribution Company Plc (Eko Disco), announced today the completion of payment for the acquisition of a 60 per cent stake in Eko Disco. The balance payment of US$101.25 million was made two days ahead of the Bureau of Public Enterprise's stated deadline and follows payment of the initial 25 per cent deposit of US$33.75 million earlier this year. The total transaction value is US$135 million.
To date, WPG has raised close to US$500 million in equity and debt financing to fund the acquisition of the Eko Disco and the significant rehabilitation and transformation work required to improve distribution network infrastructure and operations. US$250 million has been allocated to rehabilitation while the Company has allocated a further US$48 million towards a power purchase agreement with the Nigerian Bulk Electricity Trading Plc (NBET).
Commenting on the completion of payment, Charles Momoh, Chairman of WPG stated, today marks a tremendous milestone; and a major step forward towards the completion of the most significant privatization of government assets in Nigeria's history. The success of the power transformation programme is critical to the future development of Nigeria. WPG, along with the other preferred bidders, fully appreciate the magnitude of the task before us and are honoured to have been selected. As a sector we must work together to ensure we achieve the desired results.
He further commented that, as well as securing the finance to complete the acquisition, WPG has brought together a world class team of local and international industry experts to implement the rehabilitation and expansion programme. We look forward to the completion of the acquisition process and all matters to be resolved so we can begin the task of transformation of the Power sector in the Country.
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West Power & Gas Limited (WPG) is a Nigerian Power Investment Holding Company established to invest in Nigeria's fast evolving power sector and to participate in the development of the sector as a whole. The Company is in the final stages of completing the acquisition of the Eko Distribution Company and will explore other opportunities for investment in the sector as a whole including generation.
For more information please visit www.westpowerandgas.com
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Africapractice (PR Agency for WPG)