SA firm buys out Moi-era power producer Iberafrica - Daily Nation

SA firm buys out Moi-era power producer Iberafrica

Friday June 29 2018

electricity Iberafrica

Nairobi South-based Iberafrica owns and operates 103.57 megawatt thermal plants powered by diesel. FILE PHOTO | NMG 

By GEOFFREY IRUNGU
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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 #ticker:KPLC 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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