BY
BAMIDELE FAMOFOO
United Bank for Africa Plc has taken over majority stake in Abuja Electricity Distribution Company for failure of the majority shareholder in the company to pay back loan advanced to it for acquiring shares.
The takeover, backed by law, puts the bank in charge of 60 percent shareholding of the Abuja Disco.
Former majority shareholder, KANN Consortium, had approached UBA for investment fund to acquire 60 percent shareholding in the AEDC but had failed to meet up with its obligation to pay back the loan.
A statement from the Federal Ministry of Power signed by the Minister of Power, Abubakar Aliyu, noted that the bank had rightfully taken over from the former majority shareholder, KANN in a bid to recover its fund.
Abubakar noted that the takeover bid by UBA necessitated a change in the management structure of the AEDC with an interim management presiding over its affairs.
The Minister disclosed that the move was duly ratified by the industry regulator, Nigerian Electricity Regulatory Company and the Bureau of Public Enterprises which is also a shareholder in AEDC.
The Minister disclosed that the Federal Government is committed to working with all stakeholders in the deal to ascertain that AEDC continues to serve its areas of coverage.
