Transcorp Power Consortium beats two others to win Afam Power Plc bid

The Transcorp Power Consortium has been announced as the winner of the bid for the purchase of the Adam Power Plc.

Transcorp got the winning bid after submitting a bid of N105 billion to acquire the electricity company 100 percent.

In a similarly development, Quest Electricity won the bid for 60 per cent equity in Yola Electricity Distribution Plc with a bid of N19bn.

Diamond Stripes Consortium, was however declared the reserve bidder for the power company with a bid of N102.39bn while Unicorn Power Generation Consortium came third with a bid of N101.05bn.

Sources close to the bidding process said Unicorn emerged the highest bidder with a bid of N100.45bn; Transcorp submitted a bid of N89.37bn while Diamond put in a bid of N72.73bn.

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The source further revealed that It was when the potential investors were asked to go and reverse their bids for a second round that Transcorp Power Consortium, which operates the Ugheli Power Plant threw in the highest bid of N105.3bn.

The winner is also to pay a BPE Management Fee of five per cent of the total bid value.

On the other hand, Quest Electricity Nigeria Limited, which was the sole bidder for Yola Electricity Distribution Company, submitted an initial bid of N17.67bn.

The company was said to have reversed its bid at the second round when it was told that its bid did not meet the reserve price set by the National Council on Privatisation.

Speaking at the ceremony to announce the winners of the bids, the Vice-Chairman, Technical Committee of NCP, Dr Ayo Teriba, said the winning and reserve bids were subject to the approval of the NCP chaired by the Vice-President, Prof Yemi Osinbajo.

He said: “The transaction of the enterprises will legally come to a close with the signing of the Share Purchase Agreement and any other related documents by each preferred bidder as approved by the NCP.

“Payment will be made in naira through the Remita Retrieval Reference in favour of BPE; 25 per cent of the purchase consideration should be made within seven working days from the date of signing the Share Purchase Agreement.

“The remaining 75 per cent payment will be paid to BPE within 180 calendar days after signing of the Share Purchase Agreement.”

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