The Asset Management Corporation of Nigeria (AMCON) has sold its 60% stake in the Ibadan Electricity Distribution Company (IBEDC) for N100 billion, NaijNaira can report.
AMCON’s managing director, Gbenga Alake, shared the update during a session with media executives, according to TheCable.
The federal government had earlier disclosed plans to offload five DisCos under AMCON and commercial bank control.
Ibadan DisCo was one of them, along with Abuja, Benin, Kaduna, and Kano Electricity Distribution Companies.
Alake said the stake was sold for nearly double the price offered in earlier deals.
“Today, I announce to you that Ibadan DisCo has been sold,” Alake said. “When we came in, it had already been sold. We rejected that and asked for a better offer.”
He added, “At the end of the day, we got almost double of what Ibadan DisCo was going to be sold for.”
Legal disputes have already emerged, and Alake confirmed multiple parties are now challenging the sale.
“There are many interests now fighting and writing. But we’re confident the right thing was done,” he said.
AMCON is set to officially hand over the asset to the new buyer, despite the ongoing court battles.
In May, the African Initiative Against Abuse of Public Trust filed a lawsuit at the federal high court in Abuja.
The group accused AMCON and others of attempting a secret sale of the 60% stake for $62 million.
The civil society group claims that’s a massive undervaluation, compared to the $169 million paid for the same stake back in 2013.
They alleged the deal would cause a loss of $107 million in public value.
Article updated 2 months ago. Content is written and modified by multiple authors.
