Following Nigeria’s privatization move, the Bureau of Public Enterprises (BPE) has sanctioned the 70 percent acquisition of state-owned Egbin Power Plant by KEPCO Energy Resources, for the sum of $407.3 million.

BPE disclosed this in a official statement  at the end of the second meeting of  National Council on Privatisation (NCP) for 2013, held at the Presidential Villa, Abuja.

It read: “NCP had approved the sale of 70 percent of Federal Government’s shares in Egbin Power Plant to KEPCO Energy Resources.”

The Council also reminded KEPCO to as a matter of seriousness pay the 51 percent of the plant’s shares at the 2007 valuation, worth $549.01 million as well as the payment of the  additional 19 percent of the shares at its current value of $670 million.

In the letter conveying the NCP’s approval to KEPCO, the Acting Director-General of BPE, Mr. Benjamin Ezra. Dikki, said KEPCO is expected to pay 25 percent of the money within 15 working days from the day of receipt of the offer letter and the balance of 75 percent within 90 working days (3 Months).

The Council equally directed that the BPE reserves 10 percent of the reminder of 30 percent (which is 3 percent) for the workers and the remaining 90 percent of the 30 percent shares (which is 27 percent) to be sold to the Nigerian people through Initial Public Offer (IPO) at a later date.

The privatization of the  Power Plant was earlier concluded with KEPCO Energy Resources emerging as the favoured company to buy 51 percent of its shares on  May 17, 2007 at a price of $280 million.

An initial 10 percent of that bid price in the sum of $28 million was received at the time and an escrow agreement was entered into by committing the payment of a further 50 percent ($140 million), of the purchase price within 90 days after the conclusion of due diligence by the investor in accordance with the terms of the sale.