17 December 2012

Nigeria: Buyers of Power Firms to Pay 25 Percent of Bid Price January

The Bureau of Public Enterprises (BPE) had said in a statement in November that the next stage in the privatization process was for the designated preferred bidders to be invited for negotiations with the BPE on the expected payment of 25 per cent of the bid price within 15 business days after signing the sale and purchase agreement.

The statement said, "Within fifteen (15) Business Days after signing of the Sale and Purchase Agreement, the Shareholders' Agreement or the Performance Agreement whichever is earlier, or at a mutually agreed earlier time, the bidder shall make a down payment of twenty-five percent (25%) of the share purchase price."

Though BPE spokesman, Chukwumah Nwokoh could not be reached to confirm whether the bidders have been invited for negotiation, a source in the agency told Daily Trust that the bidders were invited for negotiation and signing of sale purchase agreement last week.

The source said "they (the bidders) are expected to pay 25 per cent of their bid price in the first of week of January barring any unforeseen things."

He said after the payment, subscribers' bank guarantee would be returned to them and they would be required to complete the payment in June or July. After the completion of payment, the handover of the successor company to the Preferred Bidder will conclude the transaction, BPE said.

The privatization agency had received bank guarantees worth $335.9m from the preferred bidders on November 23.

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