BPE gives Korean firm deadline to pay N63.95bn for Egbin Power plant

The company had paid $28million, being the initial payment of 10 per cent of the bid price.

The Bureau of Public Enterprises, BPE, on Tuesday said it transmitted an offer letter to Korean firm, KEPCO Energy Resources, setting the deadline for the payment $407.3million (about N63.95billion) in respect of supplemental Share Purchase Agreement, SPA, for the sale of 70 per cent of federal government shares in Egbin Power Plant.

The National Council on Privatisation, NCP, had approved the transaction conceived in 2007 when the Federal Government initially agreed to dispose of 51 per cent equity stake in the 1320 megawatts, capacity plant reputed to be Nigeria’s biggest hydro-power company.

Indications are that the South Korean power company, which had earlier paid a deposit of 10 per cent of the amount, was granted approval to acquire additional 19 per cent of the plant at the current evaluation.

According to the BPE, while KEPCO is expected to pay $279.995million (about N43.96billion), representing 51 per cent of the shares at the 2007 valuation of $549.01million (about N86.2billion), it would pay $127.3million (about N19.99billion) for the additional 19 per cent of the shares at the current valuation of $670 million (N105.2billion).

 

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