download (87).jpegEko Disco upgrades Festac, Falomo, VGC and other suppliers to B and A, downgrades others to Band B
Transgrid to complete acquisition of Eko Disco in April 2025. 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% majority stake in Eko. Disco has a stake in Eko Electricity Distribution Company (Eko Disco), the second largest electricity distribution company in Nigeria.
News channel reported earlier this month that West Power and Gas Ltd (WPG), the parent company of Eko Disco, was set to sell its entire stake in the power company after the Transgrid Enerco consortium paid a commitment fee.
The consortium won the bid to acquire the majority stake in Eko Disco following a competitive process that began earlier in 2024.
It was noted that the three consortium companies signed the Share Purchase Agreement (SPA) on Tuesday, January 21, 2025, and the transaction will be completed in April 2025. The deal, said to be worth more than $200 million, will see WPG sell its ownership of the electricity distribution company to the Transgrid Enerco consortium.
North-South Power Company Limited (NSP) is a power generation company that owns the Shiroro Dam.
The acquisition will give him direct control of EkoDisco's operations and finances.
In a statement, WPG Chairman Charles Momoh said: "Transgrid Enerco, once the necessary regulatory approvals are obtained, will take advantage of the positive changes taking place in the rapidly developing Nigerian electricity market to reposition Eko Disco to have access to new sources of capital.
Meanwhile, for Axxela, the acquisition should help the gas company to expand in the distribution sector of the market, giving direct access to sources of cash.
Gas companies are at the bottom of the value chain and are highly dependent on power generation companies for payments. Axxela says it has developed a natural gas distribution network infrastructure spanning 360 kilometres. The company has also invested in power generation companies, including Akute and Alausa Independent Power Plants. The company also has an existing relationship with Eko and Ikeja DisCo with integrated power projects of 100MW and 40MW in the two Discos respectively. For Stanbic Infrastructure Fund, the agreement provides a unique opportunity to invest in the country's energy sector.
SIF, established in June 2021 as a N100 billion programme, is the largest private equity fund dedicated to infrastructure in Nigeria. The fund is registered under the infrastructure fund rules issued by the Securities and Exchange Commission. Part of the fund's objectives is to target strong cash flow prospects to meet the periodic distribution needs of investors.
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