The privatisation of the power sector is likely to be completed on schedule: all the preferred bidders for the 15 Power Holding Company of Nigeria (PHCN) successor companies have met the deadline for the payment of the mandatory 25 per cent of the offer value of their bids.
At the expiration of the deadline yesterday, the Bureau of Public Enterprises (BPE) said it had received a total of N87.8 billion ($559,445,573.96) from 14 bidders being the 25 per cent payment for the 15 successor companies.
The BPE yesterday received payment from three remaining bidders to complete the number.
The bidders who paid yesterday include 4 Power Consortium, who paid $31million being the mandatory 25 per cent of the bid value for Port-Harcourt Distribution Company; Interstate Electrics Limited paid $31.5 million being the mandatory 25 per cent of the bid value for Enugu Distribution Company while North-South Power Company paid $27. 9 million which is the mandatory 25 per cent of the bid value for Shiroro Power Plc.
Earlier, Vigeo Consortium, the preferred bidder for Benin Distribution Company, had paid USD $32.25million;
Transcorp/Woodrock Consortium, the preferred bidder for Ughelli Power Plc, paid $75 million; CMEC/EUAFRIC Energy JV, the preferred bidder for Sapele Power Plc, paid $50,249,965; Kann Consortium, the preferred bidder for Abuja Distribution Company, paid $41 million; Aura Energy, the preferred bidder for Jos Distribution Company, paid $20,464,968.15; Mainstream Energy Ltd, the preferred bidder for Kainji Power Plc, paid $59,467,500; and Sahelian Power SPV, the preferred bidder for Kano Distribution Company, paid $34.25million.
Other bidders are: Amperion Power Company Limited, the preferred bidder for Geregu Power Plc, which paid USD$33 million; Integrated Energy Distribution & Marketing Company, the preferred bidder for Ibadan and Yola Distribution Companies, which paid USD$42.25 million and USD$14.75 million for Ibadan and Yola Discos respectively; NEDC/KEPCO, the preferred bidder for Ikeja Distribution Company, which paid USD$ 32.75 million; and West Power & Gas, the preferred bidder for Eko Distribution Company, which paid USD$33.75 million.
Having succeeded in paying the 25 per cent, the bidders are now required to pay the balance of 75 per cent value of their bids within 90 days to complete the payment process, after which the companies would be handed over to them.
By the new timeline set by the BPE, it is expected that the privatised power companies would be handed over to their core investors by the end of June this year.
The final approval of the preferred bidders by the National Council on Privatisation (NCP) and its announcement for the successor companies was done on October 23, 2012.
The Nigerian electricity industry has been unbundled into generation and distribution companies and a single transmission company with a view to encouraging private-sector participation and attracting foreign and local investment into the Nigerian power sector to ensure reliable electricity supply.
Zenith Bank listed on London Stock Exchange
Meanwhile, the London Stock Exchange(LSE) yesterday admitted Zenith Bank Plc to its Main Market.
The bank is listing Global Depository Receipts (GDRs) in London, giving it access to a wide range of major institutional investors and significantly raising its international profile.
The bank's market capitalisation at listing was $4.24 billion.
Head of Primary Markets, Africa, at London Stock Exchange, Mr. Ibukun Adebayo, said: "Zenith Bank's listing highlights London's leading role in supporting Nigeria's burgeoning financial sector. Three major Nigerian banks have listed in London demonstrating UK and international investors' appetite for exposure to this fast growing and increasingly diverse economy."
The bank is admitting 125 million GDRs which will trade on London Stock Exchange's International Order Book, the world's largest and most liquid GDR market. Each Zenith Bank GDR represents 50 ordinary shares.
The bank is the third Nigerian bank to list GDRs in London following Guaranty Trust Bank and Diamond Bank.
The listing means that the two largest Nigerian banks by market capitalisation are now listed in London. The bank joins a vibrant community of 58 emerging market banks listed in London, valued collectively at just under $75 billion.
The listing also gives Zenith access to the deepest international pool of capital in the world, currently holding more than $1.8 trillion in international equity assets. It joins five other companies on London Stock Exchange (LSE)'s markets that have major operations in Nigeria.
London Stock Exchange (LSE) is the largest international stock exchange for African companies. Since 2008, Africa-focused companies listed on London Stock Exchange(LSE) have raised over £4.2 billion in new and further issues 97 Sub-Sahara African focussed companies are listed on or admitted to London Stock Exchange Markets, comprising: 23 equity listings on Main Market, 2 GDR listings on Main Market, 70 equity admissions on AIM and 2 GDR listings on PSM Clifford Chance is the bank's UK counsel and J.P. Morgan Chase is the Depository Bank.