XerxES Investment Global in $164m Abuja electricity deal

by | May 2, 2013 3:46 pm

XerXes Global Investments has backed a $164 million deal to acquire 60 percent of Nigeria-based utility company Abuja Electricity Distribution Company (AEDC).

The investor partnered Copperbelt Energy Corporation (CEC), an electricity distribution company based in Zambia, on the transaction. The duo structured the acquisition through KANN Consortium, a holding company equally owned by the duo.

The deal will be financed through a combination of debt and equity, and is expected to be finalised by August 2013.

XerXes and CEC won the deal through an auction process. CEC last year signed an agreement with Africa Finance Corporation, to finance acquisitions across Africa. AEDC holds a franchise for distributing electricity across Nigeria’s Abuja, Niger, Kogi and Nasarawa states. The company is understood to have about 600,000 customers. AEDC employs about 3,000 people.

Norton Rose advised CEC on the deal, providing legal services on acquisition and shareholder agreements.

Partners Arun Velusami and Bayo Odubeko led the team, supported by senior associate Julie Keefe and associates Peter Henley and Brian Butterwick.

Detail Commercial Solicitors, a Nigeria-based law firm, also provided legal services on the deal, while Standard Bank of South Africa provided financial services to CEC.

Aurecon, an engineering services company based in Singapore, advised CEC on the technical aspects of the transaction.