The Asset Management Corporation of Nigeria (AMCON) has successfully sold its 60 percent stake in the Ibadan Electricity Distribution Company (IBEDC) for N100 billion, according to an announcement made on Thursday.
AMCON Managing Director, Gbenga Alade, revealed this development while briefing journalists, stating that the remaining 40 percent stake in the electricity distribution company is held by the Bureau of Public Enterprise (BPE).
"Today, I announce to you that Ibadan DisCo has been sold. When we came in, it had already been sold," Alade explained, adding that AMCON rejected the initial offer and pushed for a higher valuation.
"We got in and said, 'No, it cannot be. We said they should go and submit a new offer and that we were not going to sell for that. At the end of the day, we got almost double of what Ibadan DisCos was going to be sold for," he stated.
The AMCON chief executive did not disclose the identity of the company that acquired IBEDC but mentioned that the handover to the successful bidder would happen soon.
Background of AMCON's Takeover
AMCON took control of Ibadan DisCo in January 2022 following a judgment delivered by a Federal High Court on September 8, 2021. The takeover was prompted by the company's default on its Loan Service Agreement.
This sale represents a significant development in Nigeria's ongoing power sector reforms and privatization efforts, which have seen various electricity distribution companies change ownership in recent years.
The N100 billion transaction is expected to inject fresh capital and potentially new management strategies into the electricity distribution company that serves consumers across Oyo, Ogun, Osun, Kwara, and parts of Ekiti, Niger, and Kogi states.
Industry analysts will be watching closely to see how this change in ownership might affect service delivery and operational efficiency in the affected regions.
Stay connected with the latest updates on Nigeria's power sector and other important news by following BenriNews on our social media platforms.
