Transcorp Cough Up N105.3billion To Acquire Afam GenCo

Transcorp Consortium has acquired 966MW installed capacity Afam Power Plc and Afam Three Fast Power Limited - both of which are known as Afam GenCo (Generating Company) - as the company continues to invest in Nigeria's power sector. The acquisition will see Transcorp acquire 100% of Afam GenCo.

In a statement obtained by AllNews, it cost Transcorp NGN105.3 billion to purchase Afam GenCo which has a 1000MW capacity power plant. The deal was witnessed by the Vice President of Nigeria, Yemi Osinbajo, at the State House, Abuja, on Thursday, November 5, 2020.

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According to the Chairman of Transcorp, Tony Elumelu, Transcorp's investment in the power sector is to enable affordable, dependable electricity to Nigerians, "Bringing affordable, dependable power to the Nigerian people is core to Transcorp’s mission. Our significant investments in the power sector are demonstrations of our contribution to the economic transformation that I know Nigeria is capable
of. Power remains the single most critical factor  for lifting our people out of poverty and job  creation for our teaming youth.

"The  acquisition marks a significant milestone for Transcorp in the pursuit of its corporate purpose of improving lives and transforming Nigeria. I am honoured to be working with the Federal Government and urge it to continue its policy of creating an enabling environment, that sustains the confidence of both local and foreign investors - and delivers the opportunities and aspirations that all Nigerians seek."

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Speaking on Transcorp’s track record, the Director-General of the Bureau of Public Enterprise, Alex Okoh  said  “Transcorp  Consortium  is  one  of  the  success  stories  of  Nigeria’s Privatisation Programme. Through its investments in Transcorp Hotels Plc and Transcorp Ughelli Power Limited, the consortium has consistently achieved its performance targets as contained in the respective post-acquisition plans.”

Meanwhile, Osinbajo stated that, "We have seen the progress that Transcorp has made with the Ughelli Power Plant in raising the operational capacity significantly, since it acquired the plant in 2013, and we expect nothing less from the Afam acquisitions. We have no doubt that the addition of Transcorp to the Afam community, will come with the forward thinking Corporate Social Responsibility initiatives that Tony and his team are known for. This transaction is a confirmation of the reform trajectory the Administration is leading in the power sector."