Nairobi South-based Iberafrica owns and operates 103.57 megawatt thermal plants powered by diesel. FILE PHOTO | NMG
Summary
- The company has been supplying Kenya Power with electricity for transmission to the national grid since 1990s.
- The takeover of all the issued share capital of the firm includes all shareholder claims against Iberafrica, said the buyer.
- This acquisition does not involve a clean energy company but one of the most expensive power sources in Kenya.
South Africa-owned AEP Energy Africa (AEP) has acquired Moi-era
independent power producer Iberafrica for Sh6.22 billion ($61.57
million).
The company has been supplying Kenya Power
with electricity for transmission to the national grid since 1990s. The
takeover of all the issued share capital of the firm includes all
shareholder claims against Iberafrica, said the buyer.
“The
board of directors of AEP is pleased to advise shareholders that AEP
has entered into an agreement to acquire 100 per cent of the issued
share capital of IberAfrica Power (East Africa) Limited, together with
all shareholders’ claims against IberAfrica, for a maximum aggregate
purchase consideration of US$61,569,066,” the AEP statement said.
Following
the acquisition, AEP advised investors that exercise of caution on the
counter – which is listed on the Johannesburg Securities Exchange (JSE) –
is no longer required.
AEP was formed early last year as a special purpose vehicle
listed on the JSE with the express purpose of making acquisition in
energy companies in Africa.
The transaction is still
subject to approval from regulators and related parties including the
Competition Authority of Kenya, the Energy Regulatory Commission, Kenya
Power, South African Reserve Bank, and AEP shareholders.
Nairobi
South-based Iberafrica owns and operates 103.57 megawatt thermal plants
powered by diesel. It has an existing power purchase agreement with
majority state-owned Kenya Power, which buys and sells electricity.
The
transaction is being funded from a 12-month loan facility with Barak
Fund SPC – an SA structured trade financier –but with access to the cash
based on the conclusion of the transaction including fulfilling all
conditions and regulatory requirements.
“AEP’s vision
is to significantly increase access to, and use of, a variety of clean
energy products by African countries, their industries and their
citizens,” said the acquiring firm in the statement.
However, this acquisition does not involve a clean energy company but one of the most expensive power sources in Kenya.
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