August 19, 2022

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No foundation for takeover of BEDC – Administration 


The administration of Benin Electrical energy Distribution Firm (BEDC) Plc has mentioned there isn’t a authorized foundation for the takeover of the corporate following the purported activation of the decision on its collateralised shares by Constancy Financial institution.

The purported activation seeks to take over the respective Boards of Kano Electrical energy Distribution Firm, Kaduna Electrical energy Distribution Firm and BEDC Electrical energy Plc (the DisCos) over the shortcoming to repay the loans obtained to amass majority stakes within the DisCos in furtherance of the 2013 privatisation train.

The corporate mentioned in an announcement launched in Benin immediately that, “The referenced report additionally alleges that sure events have been appointed as Board Members, Unbiased Administrators and Managing Directorof BEDC Electrical energy Plc. We perceive these appointments have been communicated to the Bureau of Public Enterprises (BPE) and the Nigerian Electrical energy Regulatory Fee.”

Nevertheless, the administration of BEDC said unequivocally that, “There isn’t a contractual, statutory or regulatory foundation for such.” The assertion added that, “For the avoidance of doubt, the shares of BEDC haven’t been given as safety to Constancy Financial institution or to another social gathering.”

In keeping with the assertion, “As we perceive it, Vigeo Holdings Restricted (VHL – a non-shareholder of BEDC) obtained credit score services from Stanbic IBTC Financial institution Restricted, Constancy Financial institution Plc, and Keystone Financial institution Plc (the VHL Lenders).

“We additional perceive that the mentioned credit score services (and any enforcement motion in relation thereto) have within the meantime develop into topic of litigation in a Court docket motion instituted by VHL and different plaintiffs (the VHL Motion) with Go well with No: FHC/L/CS/239/22 – Vigeo Holdings Restricted and 4 Ors v. Stanbic IBTC Financial institution Restricted, and due to this fact, subjudiced.”

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The administration of BEDC Electrical energy Plc warned that, “Any try by Constancy Financial institution and/or BPE to intervene in BEDC within the method being reported might be unlawful, illegal and might be resisted.”

1Consequently, the corporate urged its prospects, traders and companions within the electrical energy enterprise to disregard the trending experiences whereas assuring them of continuous easy operation and that it stays, “Targeted on its mission to make sure supply of high quality and dependable electrical energy to the nice individuals of Edo, Delta, Ondo and Ekiti States.”