Future Energies Africa (FEA) has announced its takeover of the Kano Electricity Distribution Company (KEDCO), after instituting a court order to halt its sale to another company by the federal government.
Recall that the Nigerian Electricity Regulatory Company (NERC) had in August said it received a request for ‘No Objection’ confirmation from Receiver Manager appointed by Fidelity Bank for the acquisition of 60 percent equity holding in Kano Electricity Distribution (KEDCO) by Powercom Smart grid Nigeria Limited (PSGN) “via a letter dated 27 June 2023 and the PSNL indicated interest to acquire 60 percent equity holdings in Kaduna Electricity Distribution Company (KAEDCO).
But FEA through its lawyer approached a Federal High Court in Lagos and issued an injunction restraining the Defendants – Nigerian Electricity Regulatory Commission, the Bureau of Public Enterprises, Sahelian Power SPV Limited (in Receivership), Patrick J.N. Ikwueto SAN (in his capacity as receiver manager of Sahelian Power), Fidelity Bank, Kano Electricity Distribution Company Plc. and Powercom Smartgrid Nigeria Limited from considering, accepting, approving, or naming Powercom or any other investor as a new core shareholder in KEDCO or conducting or recognizing any other bidding process for the sale of Sahelian’s 60% shares in the Kano Electricity Distribution Company.”
This was due to FEA saying it had already acquired the Disco after it emerged winner of a bidding process conducted by Fidelity Bank and was issued a ‘No Objection’ certificate by the BPE.
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But KEDCO in a statement said FEA has completed the acquisition of the company as its new core investor.
The statement signed by its Head, Corporate Communications, Sani Bala Sani, said it has inaugurated its new Board of Directors and reappointed Ahmed Dangana as the Managing Director/CEO.
“Management is pleased to announce that Future Energies Africa (FEA) Limited has completed the acquisition of KEDCO as its new core investor,
“The new Board, led by its Chairman, Engr. Adamu Ibrahim Gumel, arrived at the KEDCO headquarters today, Tuesday 2nd November 2023, to complete the takeover process and familiarization with the management and staff.”
“The Board Chairman while addressing staff, shared his vision of making KEDCO one of the leading DisCos in the Country. He also hinted at plans to address challenges faced by KEDCO by creating a modernized electricity distribution system that will enhance service delivery, create a friendly customer atmosphere and reduce ATC&C losses for improved operational efficiency.
PSNL got deal through back door
A source who was aware of the sale of the company told this paper that PSNL sealed the deal for KEDCO through back channels despite knowing FEA has already gotten approval for it.
The source added that it took the intervention of NERC and BPE to get an out of court agreement before FEA announced its final takeover.
But when NERC was contacted on how it resolved the issue, its General Manager, Public Affairs, Dr Usman Arabi, did not respond to calls and text messages put through his phone.
