KANN Utility Company Limited, a 50% joint venture of the Copperbelt Energy Corporation PLC has signed an agreement to acquire a 60% interest in the Abuja Electricity Distribution Company.
The agreement was signed in the Nigerian capital, Abuja, on Thursday 21st February, between KANN Utility Company Limited, the Bureau of Public Enterprises and the Ministry of Finance of Nigeria.
The consideration payable for the 60% interest in AEDC is US$164 million, out of which 25% which is about US$41 million is payable within 15 days of signing the Agreement, with the balance of 75% which is US$123 million payable after six months.
The financing plan for the acquisition has been developed with Standard Bank of South Africa, and it is intended to finance the acquisition with a combination of debt and equity.
The transaction is expected to be finalised and shares transferred when the final payment is made which is anticipated to be around August 2013.
KANN, comprising CEC PLC and XerXes Global Investments as the other joint venture partner, was confirmed as preferred bidder to acquire AEDC in November 2012 following a rigorous international bidding process that commenced with the submission of an Expression of Interest in March 2011, and submission of a bid on 31st July 2012.
AEDC has a franchise for distributing electricity in four states, comprising the Federal Capital Territory of Abuja, Niger State, Kogi State and Nasarawa State.
Serving 133,014sq km with a population of 10.5 million people in 2.3 million households, the AEDC covers a relatively lightly populated area dominated by the Federal Capital.
It has around 600,000 customers and an average electrification rate of 27%.
Approximately 3,000 people are employed by AEDC.
AEDC purchases power from the Nigeria Bulk Electricity Trading Plc and is connected to various power generation plants by the Transmission Company of Nigeria.
During the interim period, preparations will be made to take over the management of AEDC.
This is we expect to be hearing and not harrasment of he opposition.
Yes this is awesome.Mostly it is the other way around.
Excellent work CEC…. We need more of such joint ventures. Big up to you.
Way to go CEC. This is what happens when you focus on achieving economic results and you have the right caliber people to do it. Ba PF learn from CEC, focus on tangible economic and social gains instead of Bye Elections, appointments, stupid dossiers of HH worth and harassing Nevers!!
I hope the PF Government Structures are reading this and learning something after their deplorable actions in “grabbing” Zamtel on the basis that it is for Zambians.
I hope they will have enough electricity to distribute as there is none available in the grid. Good luck to them. It would have been easier to go into generation as that would have guaranteed the product to sell.
I have been waiting for this good news…………congrats CEC.
This is the way forward, investing in viable companies outside the country and earn foreign currency from that. This is different from always going with a begging bow from other countries tax payers to get aids or loans. Developed countries have many companies, banks, Law firms, accountant firms educational institution, individual experts, etc, who have investment abroad, overseas or simply outside their own countries, and they reck in income back to countries of origin. How many of such investment do we have as a country? We can raise substancial income from external investments in viable companies. Soldier on CEC, well done. Apart from exporting copper lets earn from outside investments as a nation through various ways. Or do we know this and just ignore?
Good news indeed for Zambian businesses; Zanaco and Zesco should think “big” also not just playing in thier back yard
#1 Jay Patel, sober up naiwe! Why bring politics in this CEC venture??? CEC is not govt owned. It is in private hands and if govt has a stake, it is a very minimal one.
Congrats CEC!!!
Well done PF and my friends at CEC, former UNZA monks
What has this got to do anything with PF? Is CEC a PF company?
Twaitemwa iyi.
Good news and I will increase my share holding
Guys, the money CEC earns goes to England so I am told. In the first place this CEC – Zesco arrangement is not benefial for Zambia. I hear CEC doesn’t pay debts it owes Zesco, why celebrate now? Someone correct me if I am wrong.
A good friend tipped me about this company…definitely buying shares Asap!!
Be carefull with NIGERIANS , remember they just Stole our AFCON CUP
My name is Hanson sindowe,am the CEO of CEC i was born in southern province and am Tonga but am ten times richer than my brother(hh) and chilala.u can read my profile below: *******
Word up CEC. I am proud of you. And I believe you have opened a door for many of us to think outside the box.
CEC is milking Zambia.. they owe ZESCO and still leverage Zambian resources to enrich themselves. It is time PF made CEC account.