Controversy Trails Purported Sale of Kano Disco as Two Firms Lay Claim to Coy

Emmanuel Addeh in Abuja

Two firms, Powercom and Future Energies Africa (FEA) have laid claim to being the rightful winners of a bid to buy Kano Electricity Distribution Company (KEDCO), THISDAY has learnt.

The federal government had in July 2022 listed KEDCO as one of the worst-performing Discos among the 11 power distributors in Nigeria and had thereafter made moves to resell the Disco to new owners.

However, there is confusion over the deal as the two energy companies have said they duly satisfied all the statutory requirements to own the power company.

Whereas the ownership of the 60 per cent shares in contention in KEDCO has now been handed over to Powercom, Future Energies, has maintained that the company acquired the Disco after it (Future) emerged winners of a bidding process conducted by Fidelity Bank and was issued a ‘No Objection’ certificate by the Bureau of Public Enterprises (BPE).

With no apparent resolution in sight, Future Energies approached the Federal High Court in Lagos which restrained the defendants from considering, accepting, approving, or naming Powercom or any other investor as a new core shareholder in KEDCO or conducting or recognising any other bidding process for the sale of Sahelian’s 60 per cent shares in the company.

The defendants include: The Nigerian Electricity Regulatory Commission (NERC), the BPE, Sahelian Power SPV Limited (in Receivership), Patrick J.N. Ikwueto (SAN) in his capacity as receiver manager of Sahelian Power, Fidelity Bank, KEDCO Plc and Powercom Smartgrid Nigeria Limited.

The company’s position came days after Powercom announced it had acquired a 60 per cent stake in Kano Disco.

NERC also stated in an advertorial that it had received a request for ‘No Objection’ from the receiver manager appointed by Fidelity Bank for the acquisition of the said 60 per cent equity holding in KEDCO by Powercom.

But speaking with journalists at the weekend, Future Energies through its representative, Mr Adam Ibrahim, insisted that it had satisfied all the conditions to be awarded the 60 per cent ownership.

 “Powercom is not the rightful owner of KEDCO because FEA had already signed a legally binding agreement to purchase the shares as far back as 25 May 2023.

“We went through the process, we sent in an expression of interest. Fidelity and its Receiver Manager looked at our bid alongside other parties that were interested in the asset and they sent us forward to BPE and NERC,” Ibrahim said.

He added: “There was a receiver manager that was appointed by Fidelity to oversee the sale of the 60 per cent shares in Kano Disco. BPE connected FEA to Fidelity through its receiver manager.

“In the last 12 months, there have been a lot of meetings, communications, document exchanges for us to get to the point where we were approved by both Fidelity Bank and the BPE for our consortium of local and international players to take over the asset.

“After a long process and comparing evaluation of ours to other bidders, we emerged successful and signed a Share Sale and Purchase Agreement (SSPA) with Fidelity Bank through its appointed receiver manager over Sahelian and its the 60 per cent stake representatives. We also received a ‘No Objection’ from the BPE (after Fidelity Bank communicated to BPE).

The company said they were in the process of negotiating the shareholders’ agreement with the BPE when Fidelity Bank reportedly asked the BPE to halt the process.

Following the decision to halt Future Energies’ process of finalising its ownership of KEDCO, it was learnt that the bid for the Disco was restarted by Fidelity Bank.

“They hired PwC to oversee a sham process because they wanted other parties that were interested before and didn’t make the cut to participate again. We were never informed of a new competitive process and were asked to resubmit our documents.

“We later found out that another company Powercom was announced by PwC as the preferred bidder, despite us having a legally binding agreement, which Fidelity Bank, BPE and NERC were aware of.

“Having met a brick wall with BPE (which insisted on following due process), Fidelity Bank decided to go to NERC, the regulator, and obtained the certificate “to force everyone’s hands,” the Future Energies’ official said.

 It was gathered that the ‘No Objection’ was issued despite a complaint letter sent to NERC by FEA Future Energies that was never responded to by NERC.

“Based on the ‘No Objection’ they received from NERC, Powercom decided to issue an announcement that they had successfully acquired Kano Disco, ” he insisted.