Transgrid Enerco Acquires Eko DisCo in a $200M Deal

  • Transgrid Enerco, a consortium of SIIF, NSP, and Axxela, acquires a 60% stake in Eko DisCo for $200 million, pending regulatory approval.
  • North-South Power gains direct control over Eko DisCo, while Axxela expands into electricity distribution.
  • The consortium aims to improve Eko DisCo’s operational efficiency and financial stability to enhance Nigeria’s power supply.

Transgrid Enerco Limited, a consortium of Stanbic IBTC Infrastructure Growth Fund (SIIF), North-South Power Company Limited (NSP), and Axxela Limited acquired a 60% equity stake in Eko Electricity Distribution Company (Eko DisCo). Pending regulatory approval, the deal, valued at around $200 million, will close in April 2025.

The consortium signed a share purchase agreement on January 21, 2025, after Transgrid Enerco paid a commitment fee. West Power and Gas Limited (WPG), the parent company of Eko Disco, confirmed the transaction’s completion.

Transgrid sees the acquisition as a crucial step in its expansion within Nigeria’s power sector. The deal benefits each consortium member. North-South Power, which owns the Shiroro Dam, gains direct control over Eko DisCo’s operations and finances, strengthening its position in Nigeria’s power sector.

Axxela Limited, a leading natural gas distributor, now enters the electricity distribution market. The acquisition gives Axxela direct access to cash flow. Axxela operates a 360-kilometre natural gas network and holds stakes in power generation projects, including the Akute and Alausa power plants. The company also has embedded power partnerships with Eko and Ikeja DisCos, with a total capacity of 140 MW.

Stanbic IBTC Infrastructure Growth Fund, Nigeria’s largest private equity fund for infrastructure, aligns this acquisition with its investing strategy in high-potential infrastructure projects. The deal provides an opportunity to invest in a business with solid cash flow potential, particularly in Nigeria’s growing energy sector.

Charles Momoh, chairman of WPG, described the acquisition as a key development for Eko Disco. He stated that the new owners would capitalise on evolving opportunities in Nigeria’s electricity market. Momoh added that the consortium would work to reposition Eko DisCo to improve its financial stability and access new sources of capital.

After finalising the transaction, Transgrid Enerco plans to boost operational efficiency. The consortium aims to ensure that Eko DisCo provides customers with a more reliable power supply. The new owners expect to improve the company’s performance by streamlining operations and enhancing financial stability.

The acquisition marks a positive development for Nigeria’s energy sector as it seeks to modernise its electricity distribution network. The deal highlights the growing interest from private investors in Nigeria’s power sector as it tackles its electricity supply challenges.

Transgrid Enerco’s acquisition of Eko DisCo marks a significant shift in Nigeria’s power sector. The transaction strengthens each consortium member’s position while promising to improve operational efficiency and financial stability for Eko Disco. With regulatory approval expected soon, the deal will likely reshape Nigeria’s electricity market.

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