Transnational Corp. of Nigeria Plc has notified the Nigerian Stock Exchange (NSE) that Transcorp Ughelli Power Limited (TUPL), a subsidiary of the parent company, has paid to the Bureau of Public Enterprises (BPE) the sum of $225million installment, representing 75 per cent of the $300million bid price for the 972 megawatts capacity Ughelli Power Plant .
The Ughelli Power Plc is one of the six power generation companies unbundled from the Power Holding Company of Nigeria (PHCN).
In July 2012, TUPL bid $300million to acquire Ughelli Power Plc, owner and operator of Ughelli Power Plant in Delta State. TUPL emerged the preferred bidder for the acquisition on September 25, 2012 following a successful technical and financial evaluation by the BPE signaling the company’s unreserved capacity and competence to manage the Plant.
Subsequently, TUPL met the 25 per cent deposit deadline by paying the sum of US$75million to the BPE on March 20, 2013.TUPL plans to increase the power generation of the plant from 300MW to over 1070MW in the next five years.
Commenting on the successful acquisition of the Plant, the Chairman of Transcorp, Mr. Tony Elumelu, said: “This is a laudable and remarkable achievement, but it is only just the beginning. We can now embark fully on our strategy to contribute to the development of Nigeria's power sector, whilst creating long term economic and social value for our stakeholders and the greater community.”
“We fully expect our engagement on this world-class project to improve the living standards of all Nigerians as well as impact positively on our country’s Gross Domestic Product (GDP).”
President/CEO of Transcorp, Mr. Obinna Ufudo said: “Transcorp’s ability to achieve set goals and objectives propels us to target even larger investments in our selected business sectors with the potential to contribute significantly to Nigeria’s development.”
Ufudo continued: “Following this remarkable milestone, we shall now take over the operations and management of the Plant, deploy our strategy to ensure a smooth transition and in the near term, create a profitable business that will deliver greater outcome in terms of power to the nation. Our inclination to success consistently translates to value for all our stakeholders, one of the goals which we pledged from the outset”.
The CEO of TUPL, Mr. Adeoye Fadeyibi affirmed,: “This is an exciting day for us as a company as well as the power sector and every Nigerian. It is the beginning of an era where power becomes constant and within reach. We plan to deliver on capacity targets and sustain the momentum using people and resources to achieve operational excellence.”
Africa Finance Corp., UBA Bank Plc, FCMB Group Plc and Fidelity Bank Plc (FIDELITY) provided a $215 million debt-financing facility to help Transcorp buy the plant that generates 8 percent of Nigeria’s current power supply, AFC said today in a separate statement.
Transcorp announced five months ago it wanted to raise $95 million to refinance Ughelli and expand investments in oil exploration and hotels.
The company’s stock rose 8.1 percent to 1.33 naira by the close in Lagos, the commercial capital, the biggest gain since June 27. The shares advanced 34 percent this year, compared with a 30 percent increase in the Nigerian Stock Exchange All-Share Index.
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