No basis for takeover of BEDC, says management
The purported activation seeks to take over the respective
Boards of Kano Electricity Distribution Company, Kaduna Electricity
Distribution Company and BEDC Electricity Plc (the DisCos) over the inability
to repay the loans obtained to acquire majority stakes in the DisCos in
furtherance of the 2013 privatisation exercise.
The company said in a statement released in Benin today
that, “The referenced report also alleges that certain parties have been
appointed as Board Members, Independent Directors and Managing Directorof BEDC
Electricity Plc. We understand these appointments have been communicated to the
Bureau of Public Enterprises (BPE) and the Nigerian Electricity Regulatory
Commission.”
However, the management of BEDC stated unequivocally that,
“There is no contractual, statutory or regulatory basis for such.” The
statement added that, “For the avoidance of doubt, the shares of BEDC have not
been given as security to Fidelity Bank or to any other party.”
According to the statement, “As we understand it, Vigeo
Holdings Limited (VHL - a non-shareholder of BEDC) obtained credit facilities
from Stanbic IBTC Bank Limited, Fidelity Bank Plc, and Keystone Bank Plc (the
VHL Lenders).
“We further understand that the said credit facilities (and
any enforcement action in relation thereto) have in the meantime become subject
of litigation in a Court action instituted by VHL and other plaintiffs (the VHL
Action) with Suit No: FHC/L/CS/239/22 - Vigeo Holdings Limited and 4 Ors v.
Stanbic IBTC Bank Limited, and therefore, subjudiced.”
The management of BEDC Electricity Plc warned that, “Any
attempt by Fidelity Bank and/or BPE to intervene in BEDC in the manner being
reported will be illegal, unlawful and will be resisted.”
Consequently, the company urged its customers, investors and partners in the electricity business to ignore the trending reports while assuring them of continuing smooth operation and that it remains, “Focused on its mission to ensure delivery of quality and reliable electricity to the good people of Edo, Delta, Ondo and Ekiti States.”
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