Eko Disco upgrades Festac, Falomo, VGC and other suppliers to Band A, downgrade

Not a valid attachment ID.Eko 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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