The Asset Management Company of Nigeria (AMCON) has taken over the majority stake in Integrated Energy Distribution and Marketing (IEDM) Limited, the core investor in Ibadan Electricity Distribution Company (Ibadan Disco).
AMCON executed the takeover of IEDM following a default in a loan servicing agreement executed with Polaris Bank, SUN Newspaper reported.
According to a public notice announcing the takeover of the utility firm, AMCON disclosed that it had appointed Osayaba Giwa-Osagie to take over the entire undertakings which included the assets of IEDM, shares and interests in related companies and entities, in addition to the monies kept in the 25 banks in Nigeria.
‘‘AMCON has pursuant to Section 48 and 61 of AMCON Act 2010 been appointed Receiver/Manager over all the Assets of Integrated Energy Distribution and Marketing Limited as stipulated in the instruments executed in favour of AMCON by virtue of the Loan Purchase and Limited Servicing Agreement executed with Polaris Bank Limited dated 30th November 2018 and a Notice of Appointment of the Receiver/Manager dated August 6th, 2021, which was duly stamped by the Commissioner for Stamp Duties,” the statement stated.
Prior to yesterday’s take over of Ibadan Disco by AMCON,NERC had in 2017 fined IBEDC a sum of N50 million for non-compliance with Order No. NERC/173/2017, directing the company to fully recover the outstanding sum of N5.7 billion being the balance of the loan granted by the utility to IEDM.
The loan was granted by IBEDC from funds released to all DisCos by the CBN under the Nigeria Electricity Market Stabilisation Funds (NEMSF) for the purpose of improving the networks and reducing aggregate technical, commercial and collection losses.
Also in 2018, NERC had, vide its Order No. NERC/181/2018 of June 19th 2018, suspended the Board of Directors and other key management staff of IBEDC on account of the company’s default in the recovery of the inappropriate shareholder loan granted to IEDM by the utility company.
