Meralco takes over #Nigeria #power utilities POWER retailer Manila Electric Co. (Meralco) and Integrated Energy Distribution and Marketing Ltd. (IEDM) formally took over two distribution utilities in Nigeria on November 1. “November 1, I believe, was the turn over date,” said Meralco Chairman Manuel V. Pangilinan. “We’ve sent our people there early October. It was a team of two groups, a total of 12 Filipinos.” Meralco has partnered with IEDM by taking in a 5-percent stake in the consortium, with the transaction valued at $31,500. IEDM is a special-purpose vehicle created to carry on the business of electricity distribution and marketing in the Nigerian electricity market. It made a bid to take over Ibadan Electricity Distribution Co. Plc. and Yola Electricity Distribution Co. Plc. Pangilinan said IEDM needed a partner because the latter does not have any experience in distribution systems. “It is essentially a service agreement. We’ve taken a 5-percent equity stake in IEDM. However, we’ve been given an option to purchase [another] 5 percent carried interest in IEDM and a further option if we wish to go up to 20 percent,” Pangilinan said in August when the company announced its partnership with IEDM. The country’s largest power distribution utility is reportedly open to increasing its stake in the said Nigerian consortium, from 5 percent to 20 percent. “We are open to [increasing our investments] but it depends on the exact nature or viability of investment, but we’d like to take a look at it on the point of view of being more on a service provider to IEDM,” said Pangilinan. Meralco’s investment in Nigeria will increase the utility firm’s footprint overseas.
Posted on: Tue, 12 Nov 2013 07:40:00 +0000
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