Future Energies Africa has completed the acquisition of Kano Electricity Distribution Company emerging the new core investor after successfully restraining the sale to PowerCom in July through legal action.
The firm announced the takeover in a statement issued Tuesday, signed by Sani Bala Sani, the company’s head of communication. Kano Electric has a distribution license that covers Kano, Katsina, and Jigawa states.
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The company’s management also said it has inaugurated its Board of Directors and reappointed Ahmed Dangana as the Managing Director/CEO.
“The new Board, led by its Chairman, Engr. Adamu Ibrahim Gumel, arrived at the KEDCO headquarters, on Tuesday 2nd November 2023, to complete the takeover process and familiarization with the management and staff.
The Federal High Court in Lagos had issued an injunction in July restraining the Nigerian Electricity Regulatory Commission (NERC), the Bureau of Public Enterprises, and Sahelian Power SPV Limited from naming Powercom or any other investor as a new core shareholder after Future Energies Africa (FEA) Limited, another interested bidder lost in the process.
In dispute is the ownership of the 60 percent shares in Kano DisCos of which representatives of the consortium of local and international partners that make up Future Energies, said NERC and Powercom failed to comply with the guidelines and requirements of the Federal Government, as laid down by the Bureau of Public Enterprises (BPE) and NERC itself.
BPE is the agency in custody of the government’s 40 percent stake in the electricity distribution asset. The court decision left Fidelity Bank, the financier of the 2013 acquisition of the utility with the temporary ownership stake of the remaining 60 percent.
Through a receiver manager, in collaboration with the BPE, Fidelity Bank had initiated a bidding process to get a technically sound and financially competent buyer to acquire the bank’s stake in KEDCO.
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After Powercom had announced its acquisition of KEDCO, Adam Ibrahim (an investor and consortium member of FEA), faulted the premise of Powercom’s acquisition announcement with the revelation that the company cannot claim to have acquired KEDCO when Future Energies had already completed the execution of contracts and agreements through a share sale and purchase agreement to acquire the shares that both BPE and NERC are aware of.
Ibrahim stated that FEA had “no recourse than to seek legal action having filed a complaint to BPE and NERC that fell on deaf ears. FEA is further surprised that NERC despite (a) its knowledge of a signed share sale and purchase agreement, (b) agreed transaction terms as forwarded to it by BPE and Fidelity’s representative, and (c) a subsequent complaint by Future Energies regarding Fidelity Bank’s attempt to scuttle the completed process, still issued a ‘No Objection’ for PowerCom.”
However, FEA revealed that for some undisclosed reasons, Fidelity Bank, which is the interim owner of the 60 percent stake of the entity, decided to halt the process and approve another bidder after having already signed a valid and binding contract to sell the shares to Future Energies. The company then went to court to secure an injunction halting the sale.
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 through 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.
“He also assured staff of the security of their jobs and pledged commitment to staff welfare and working conditions, while urging all on continued commitment and hard work towards achieving the renewed vision.
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Members of the Board include Engr. Adamu Ibrahim Gumel (Chairman); other directors are Habib Ahmed Daura, Shehu Malami Sabo, Hillary Dukor, Kingsley Ohiri, Alex Okoh (DG BPE) represented by Amaechi C. Aloke as an alternate on the Board, and Ahmed Dangana, MD/CEO. Management is optimistic that the Board will bring their wealth of experience in modernising operations and steering KEDCO to achieving its full potential.
