International legal practice Norton Rose has advised on the acquisitions of two state owned power companies from the Bureau of Public Enterprise and the Nigerian Ministry of Finance worth US$300 million, as part of the Nigeria power sector privatisation process.
Norton Rose advised Copperbelt Energy Corporation Plc (CEC) on its US$164 million acquisition of a 60 per cent interest in Abuja Electricity Distribution Company (AEDC), acquired through KANN Utility Company Limited, a joint venture between CEC and XerXes Global Investments (KANN Consortium).
This is in addition to advising West Power & Gas Limited (West Power) on its US$135 million acquisition of Eko Electricity Distribution Company.
The privatisation of Nigeria’s power sector involves the sale of 11 distribution companies and six generation companies. The acquisitions by the KANN Consortium and West Power were signed on Thursday 21 February 2013.
Norton Rose advised on all aspects of the acquisition and shareholder agreements and continues to advise on the power agreements and financings.
Partners Arun Velusami and Bayo Odubeko led the Norton Rose team, supported by senior associate Julie Keefe and associates Peter Henley and Brian Butterwick.
Arun Velusami, partner, Norton Rose, commented:
“The privatisation of Nigeria’s power sector is a major step towards modernising Nigeria’s power sector, where demand currently vastly outstrips supply, and will help Nigeria to realise its very considerable economic potential.”
Bayo Odubeko, partner, Norton Rose, said:
“It has taken a considerable amount of effort on the part of the Government of Nigeria and the participants to arrive at this point. A privatised electricity sector has the potential to take Nigeria from a hydrocarbon based economy to a manufacturing economy capable of satisfying 170 million Nigerian consumers as well as those in the wider region.”
CEC were also advised by Standard Bank of South Africa (financial), Detail Commercial Solicitors (Nigerian legal) and Aurecon (technical).
WPG were also advised by Africapital Management Limited and Global Emerging Markets (financial and transaction advisory), George Etomi & Partners (Nigerian Legal) and Sohn Associates (Technical).
Herbert Smith advised the Bureau of Public Enterprises and the Nigerian Ministry of Finance.
