NIGERIA: Uncertainty on IBEDC Ownership as AMCON Allegedly Cancels Take Over

  • AMCON takes over core investor’s assets
  • IEDM defaulted on the loan facility
  • Several indications have emerged on the cancellation of the takeover

Over the weekend, there were several reports that the Asset Management Corporation of Nigeria (AMCON) reportedly took over the operations of Ibadan Electricity Distribution Company (IBEDC) following the loan default by core investor Integrated Energy Distribution and Marketing (IEDM) Limited.

In a statement issued by Chief Operating Officer (COO), John Ayodele, said, ”Based on the foregoing, the receiver/manager came in today, 20th January 2022, to the IBEDC headquarters to take charge formally and subsequently meet with the management team,” the statement read.

In another internal memo, Ayodele further points to an agreement reached with AMCON. ”Further to the communication earlier sent on 20th January 2022, in respect of the above, kindly note that the investors have resolved on the way forward with AMCON and the status quo ante maintained,” the memo reads.

”On behalf of the board and management, I urge all of us to go about our normal duties, while we count on your unflinching commitment and dedication to ensure our revenue collection for this month and excellent service to consumers are not compromised going forward.” the memo states.

Following negotiations, several indications suggest AMCON had cancelled the takeover. According to a staff of IBEDC who wishes to remain anonymous, ”AMCON took over, but the Board paid their debt, and AMCON had to leave.”

Leave a Reply

Your email address will not be published. Required fields are marked *