The Transcorp Consortium and Mainstream Energy Solutions Limited are among the companies that received the federal government’s approval to acquire the unbundled companies of the Power Holding Company of Nigeria (PHCN).
The National Council on Privatisation (NCP) chaired by Vice President Namadi Sambo yesterday approved the sale of 60 per cent government interest in eight PHCN successor generation companies (GENCOs) and 10 successor distribution companies (DISCOs).
NCP at its sixth meeting for 2012 approved that Transcorp/Woodrock/Sumbion/Medea/PSL/ Thomassen with a bid of USD$300,000,000 is the preferred bidder for the core investor sale of 100 per cent shares of Ughelli Power Plc, even as Mainstream Energy Solutions Limited which offered an annual fee of USD$50,760,665.18 and a commencement fee of USD$257,000,000 was approved the preferred bidder for the concession of Kainji Hydro Power Plc.
The council also “approved that Amperion Power Distribution Company Limited with a bid of USD$132,000,000 is the preferred bidder for the core investor sale of 51 per cent shares of Geregu Power Plc.
“NCP approved that North-South Power Ltd which offered an annual fee of USD$23,602,484.87 and a commencement fee of USD$111,654,534 is the preferred bidder for the concession of Shiroro Hydro Power Plc; NCP also approved that Amperion Power Distribution Company Limited with a bid of USD$252,000,000 is the reserved bidder for the core investor sale of 100 per cent shares of Ughelli Power Plc.
“NCP approved that CMEC/EURAFRIC Energy JV Consortium with a bid of USD$201,000,000 is the preferred bidder for the core investor sale of 100 per cent shares of Sapele Power Plc.
“NCP approved that JBN-NESTOIL Power Services Ltd with a bid of USD$106,500,000 is the reserved bidder for the core investor sale of 100 per cent shares of Sapele Power Plc; and
“Given that Amperion is the preferred bidder for Geregu Power Plc, NCP also approved that Feniks Electricity Limited would be the reserved bidder for Ughelli Power Plc subject to their bid being revised to match the reserve price.”
The council said it disqualified Southern Electricity Distribution Company for submission of multiple bids for Benin Disco.
It however approved KANN Consortium Utility Company Ltd as preferred bidder for Abuja Distribution Company; Benin Distribution Company: Vigeo Power Consortium as the preferred bidder; Eko Distribution Company: West Power & Gas as the preferred bidder while Honeywell was approved as the reserved bidder.
Other approved bids include: Enugu Distribution Company: Interstate Electrics Ltd as the preferred bidder with Eastern Electric Nigeria Ltd as the reserved bidder; Ibadan Distribution Company: Integrated Energy Distribution & Marketing Ltd as the preferred bidder with NEDC/KEPCO as the reserved bidder; Ikeja Distribution Company: New Electricity Distribution Company (NEDC)/KEPCO as the preferred bidder with Vigeo Power Consortium as the reserved bidder; and Jos Distribution Company: Aura Energy Ltd as the preferred bidder.
Also approved are: Kano Distribution Company: Sahelian Power SPV Ltd as the preferred bidder; Port Harcourt Distribution Company: 4Power Consortium as the preferred bidder; and Yola Distribution Company: Integrated Energy Distribution & Marketing Ltd as the preferred bidder.
While highlighting the remainder of the process, the NCP said “after the approval of the results of the financial bids by Council, the highest ranked bidder for each generation or distribution company will be required to post an additional bid security (“Preferred Bidder’s Bank Guarantee”) in the form of a letter of credit or bank guarantee for 15 per cent of the transaction value within 15 business days of notification from the Bureau of Public Enterprises. The Preferred Bidder’s Bank Guarantee shall be from a Standard & Poor’s (S&P) or Moody & Fitch “A”-rated foreign bank with a correspondent bank in Nigeria or a Nigerian bank rated “A” by a rating agency approved by SEC and be valid through 21 calendar days after the stipulated proposal validity period or any extended proposal validity period.
“The designated Preferred Bidder will be invited for negotiations with BPE. Within fifteen (15) business days after signing of the Sale and Purchase Agreement, the Shareholders’ Agreement or the Performance Agreement, whichever is earlier, or at a mutually agreed earlier time, the bidder shall make a down payment of 25 per cent of the share purchase price.
“Within six months after signing of the Sale and Purchase Agreement or the Shareholders’ Agreement, whichever is earlier, or mutually agreed upon time, the bidder will be required to pay the outstanding 75 per cent of the share purchase price to complete the transaction. Upon receipt of payment, the preferred bidder’s bank guarantee will be returned to the bidder within a maximum of four (4) weeks.
“After the completion of payment, the handover of the successor company to the preferred bidder will conclude the transaction.”
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