Crisis is brewing between KANN Utility Company Limited, the lead investor in Abuja Electricity Distribution Company (AEDC) and the United Bank for Africa (UBA) over claims on repayment of the $18m acquisition loan the company secured in 2013 to acquire AEDC.
Daily Trust reports that AEDC was among the 11 Distribution Companies (DisCos) the federal government privatized under the defunct power Holding Company of Nigeria (PHCN) in 2013 through the Bureau of Public Enterprises (BPE).
BPE had requested a $164m payment as value for 60 per cent acquisition of the DisCo. KANN paid 25 per cent initially, $41m to BPE in March 2013, and 75 percent totalling $123m on 21 August 2013 to conclude the Share Sale Agreement (SSA). The company secured the $123m from UBA.
Last Thursday, Bode Olanipekun, a Senior Advocate of Nigeria (SAN) published a notice in a national daily indicating that he had a Deed of Appointment since 29th January 2020 with United Capital Trustees (UCTL), the assets manager of UBA, to take over the assets and operations of KANN.
But the company, in an injunction it filed, claimed it had repaid the loan by $51m including interest and voided the claims of takeover of its asset by Olanipekun
When our reporter contacted AEDC Chairman on the matter, Amb. Malami confirmed that KANN had filed a notice of preliminary objection and motion in the same court restraining action, adding that since the case is before the court, he won’t make further comments.
A Director at KANN and the Managing Director of CEC Africa, Engr. Emmanuel Katepa said the Receiver (Olanipekun) was aware that the company had challenged his appointment and filed a court injunction to the effect.
Daily Trust obtained the preliminary objection notice filed in March, 2020 and served on counsel to UBA and the Receiver.
According to the notice, KANN said it entered into a Deed of All Assets Debenture to cover and secure $18.270m loan from UBA. The Deed was effected on 22 August 2013 but registered with the Corporate Affairs Commission on 3rd October 2014.
The firm claimed that the maximum sum secured by the Deed of All Assets Debenture has been repaid to UBA account on 21 August 2013 ($23m) and 21 May 2014 ($28m).
“However as at the date of bringing this action KANN had more than fully repaid the portion of the debt which was secured by the Deed of All Assets Debenture being $18,270, 000 by paying back in excess of US$51,000,000 to UBA,” it maintained.