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Acquisition of 60% shareholding in Abuja Electricity Distribution Company PLC

Standard Bank of South Africa (SBSA) acted as the financial advisor to Copperbelt Energy Corporation PLC with respect to its acquisition of 60% shareholding in Abuja Electricity Distribution Company vide Kann Utility Consortium Company Limited. SBSA and Stanbic IBTC assisted KANN Utility Consortium Company Limited in respect of posting of its bid bonds, preferred bidder’s guarantee and providing debt financing to part fund the acquisition.

This is a landmark financing for the Nigerian power sector, which formed part of the privatisation of the electricity distribution sector. The aim is that private sector participation will result in reduced losses and increased power delivered to customers. The financing involved a number of different jurisdictions, with the transaction team involving Standard Bank Group staff located in Zambia, South Africa and Nigeria.

The transaction reached financial close under a challenging timeline of c.6 months from date of KANN making its initial 25% down payment (US$41 million) for the acquisition.

The main sponsor, Copperbelt Energy Corporation (“CEC”) is a twenty year old Zambian based company engaged in generation, transmission and distribution of electricity predominantly to the mining sector. On 21 August 2013, KANN Utility Consortium Company Limited completed the acquisition of the Abuja Electricity Distribution Company for a total consideration of US$164 million. 

Acquisition of 60% shareholding in Benin Electricity Distribution Company PLC

Stanbic IBTC Capital acted as financial advisor to Vigeo Holdings Limited with respect to its acquisition of 60% shareholding in Benin Electricity Distribution Company vide Vigeo Power Limited. Stanbic IBTC assisted Vigeo Holdings in raising equity and providing debt financing to part fund the acquisition.

This is a landmark financing for the Nigerian power sector, which formed part of the privatisation of the electricity distribution sector. The aim is that private sector participation will result in reduced losses and increased power delivered to customers. The financing involved a number of different jurisdictions, with the transaction team involving Standard Bank Group staff located in London, South Africa and Nigeria.

The transaction reached financial close under a challenging timeline of c.6 months from date of Vigeo Power making its initial 25% down payment (US$32.25 million) for the acquisition.

The main sponsor, Vigeo Holdings is a Nigerian conglomerate established in 1985 with business interests in oil and gas, power, capital markets, real estate, shipping, steel, marketing and distribution. On 21 August 2013, Vigeo Power Limited completed the acquisition of the Benin Electricity Distribution Company for a total consideration of US$129 million. 

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