10 November 2013, Abuja – Bresson Consortium, a pre-qualified company for the sale of Omotosho Generation Company, led other investors at the weekend to submit bid documents for the proposed sale of the plant by the Niger Delta Power Holding Company (NDPHC).
The bidding consortium, comprising of the Mr. Gbenga Olawepo-led Bresson A.S Nigeria Limited, also has as partners, Engro Powergen Limited, Thomassen Holding Limited, Kappafrik Group, Mercados, Petrolog, and Sana Elias Group as Financial Advisors.
The bidding documents were submitted at headquarters of the NDPHC in adherence to the specified technical and financial suitability criteria, ahead of the evaluation processes of the agency’s experts.
Olawepo said: “We must commend government efforts in the privatisation process because they have been very transparent and have strictly followed their lines and added value to the power sector. We expect that this will be another major milestone in the power sector reform programme that had been so far successful and by the Grace of God, we envisage that if government continues to maintain this momentum, I think in the next five years, power outages would be a thing of the past in Nigeria.”
Meanwhile, the Bresson Consortium said it was created for the purpose of the acquisition of 80 percent shareholding in Omotosho Generation Company Limited and raises acquisition finance through equity and debt to acquire 80 per cent of Omotosho, with the plan to achieve a debt to equity ratio of 70:30 for the capital structure.
According to the consortium, it intends to fund 30per cent of the required acquisition funding through cash equity from BressCo Shareholders, in conjunction with its Financial Advisors (Kappafrik Limited and Sana Elias Group) and Strategic Investors.
THISDAY gathered that Kappafrik Limited would be responsible for creating the Fund Raising model to fund the 30 percent equity of the bid based on the Risk-Reward assessment of the scenarios at any given time considering the probability of achieving theoretical potential value of the Assets on which BressCo is bidding. The concept is to propose a transparent pricing mechanism for the fund raising based on milestones as stipulated in the CPCS timeline guide, with a fixed price per share between milestones.
The acquisition lending (70 percent debt) shall be provided via a syndicated loan facility comprising of Nigeria and Foreign lenders. One of such banks and potential lead arranger is Ecobank who have already provided a letter of comfort to this effect.
Bresson AS Nigeria Ltd is a privately owned Nigerian company headquartered in Abuja, principally engaged in the business of acquiring, developing, owning, and operating Independent Power Generating Facilities (IPGF).