By Charles Ike-Okoh
FRI, 06 NOV, 2020-theGBJournal- Transnational Corporation of Nigeria Plc (Transcorp) emerged the preferred bidde for the 100% acquisition of Afam GENCO (Afam Power Plc and Afam Three Fast Power Limited) with a bid price of N105.3bn on October 23, 2019 and went on to sign the dotted lines to seal the acquisition on Thursday after negotiating the terms with the Bureau of Public Enterprise.
The signing ceremony at the State House, Abuja was between the Federal Government, represented by His Excellency, the Vice President of Nigeria, Professor Yemi Osinbajo, SAN and Transcorp Consortium represented by the Chairman of Transcorp, Mr. Tony O. Elumelu, CON.
Afam GENCO has a total installed capacity of 966 megawatts generated from a natural gas-powered plant in Rivers State. With the new acquisition, the combined installed generation capacity is expected go up to almost 2,000 megawatts.
Tony O. Elumelu, CON and Chairman of the Board of the conglomerate gave kudus to both President Muhammadu Buhari and Vice President Prof Osinbajo for their strides in promoting the development of the power sector and the resulting investments.
‘’There is no better or more powerful signal to foreign investors,’’ the elated Chairman said today after announcing ‘’my team at Transcorp Plc and I yesterday sealed the acquisition of 1000MW of electricity from sale of FGN’s 100% equity in Afam Power for N105 billion.’’
Transcorp, a publicly quoted conglomerate with a diversified shareholder base of about 300,000, have invested more than US$3 billion for controlling interests in 15 power generators and distributors since Nigeria privatised the power sector in 2013 to attract investments needed to regenerate the country’s flailing power sector.
The Vice President said the signing marks a milestone for the country with a return to private sector investment in the power sector.
‘’This investment by Transcorp in acquiring ‘Afam Power Plc’ and ‘Afam Three Fast Power’ is the first of many new investments planned in the sector across the value chain. We expect that under Transcorp’s ownership the operational capacity of the facility will be raised to its full capacity.”
The Director-General of the BPE, Mr. Alex Okoh said “Transcorp Consortium is one of the success stories of Nigeria’s Privatisation Programme. Through its investments in Transcorp Hotels Plc and Transcorp Ughelli Power Limited, the consortium has consistently achieved itsperformance targets as contained in the respective post-acquisition plans.”
Transcorp Plc portfolio comprises strategic investments in the power, hospitality, agribusiness and oil and gas sectors. Our notable businesses include Transcorp Hilton Abuja, Transcorp Hotels Calabar, Transcorp Power and Transcorp Energy.
“Bringing affordable, dependable power to the Nigerian people is core to Transcorp’s mission. Our significant investments in the power sector are demonstrations of our contribution to the economic transformation that I know Nigeria is capable of. Power remains the single most critical factor for lifting our people out of poverty and job creation for our teaming youth, Elumelu said after the signing ceremony.
For him, the acquisition marks a significant milestone for Transcorp in the pursuit of its corporate purpose of improving lives and transforming Nigeria.
‘’I am honoured to be working with the Federal Government and urge it to continue its policy of creating an enabling environment, that sustains the confidence of both local and foreign investors – and delivers the opportunities and aspirations that all Nigerians seek.”
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