Consortium Moves to Acquire 60% Shareholding of Eko Disco

•Deal for completion in April 2025

Peter Uzoho

Transgrid Enerco Limited yesterday signed a Share Purchase Agreement (SPA) for the proposed acquisition of a 60 per cent equity stake in Eko Electricity Distribution Company (EKEDC).

The  consortium comprises North South Power Company Limited (NSP), Axxela Limited, and the Stanbic IBTC Infrastructure Growth Fund (SIIF). The PSA  transaction is set to be completed in April 2025, according to a statement seen by THISDAY.

Earlier in the month, West Power and Gas Ltd (WPG), the parent company of Eko Disco was reported close to selling its entire stake after the North-South Power, Axxela, and Stanbic Infrastructure Fund consortium won the bid to acquire it.

It was learnt that the bid to acquire Eko Disco started a year ago. Although the financial consideration of the deal was not stated, it was learnt that the amount could be in excess of $200 million.

NSP which owns Shiroro Dam will get direct control and insight into Eko Disco’s operations enabling it to have a clear scope of the company’s cash flow distribution.

While Eko Disco meets remittance obligations to the market, the inability of other Discos to meet these obligations means that power-generating companies like NSP do not get their full payments.

This acquisition allows NSP to have better control of how the company collects payment and perhaps influence other Discos to employ more efficient payment collection tactics.

Chairman of WPG, Charles Momoh, was quoted in a statement to have stated’ “Transgrid Enerco will, upon obtaining the relevant regulatory approvals, capitalise on the positive changes occurring within the fast-evolving Nigerian electricity market to reposition Eko Disco to access new sources of capital.”