South Africa-owned AEP Energy Africa (AEP) has acquired Moi-era independent power producer Iberafrica for Sh6.22 billion ($61.57 million), Business Daily Africa revealed.
The company has been supplying Kenya Power with electricity for transmission to the national grid since 1990s. The takeover of all the issued share capital of the firm includes all shareholder claims against Iberafrica, said the buyer.
“The board of directors of AEP is pleased to advise shareholders that AEP has entered into an agreement to acquire 100 per cent of the issued share capital of IberAfrica Power (East Africa) Limited, together with all shareholders’ claims against IberAfrica, for a maximum aggregate purchase consideration of US$61,569,066,” the AEP statement said.
Following the acquisition, AEP advised investors that exercise of caution on the counter – which is listed on the Johannesburg Securities Exchange (JSE) – is no longer required.
Nairobi South-based Iberafrica owns and operates 103.57 megawatt thermal plants powered by diesel. It has an existing power purchase agreement with majority state-owned Kenya Power, which buys and sells electricity.