FBNQuest Merchant Bank, the investment banking and asset management subsidiary of FBN Holdings Plc, was appointed by the Bureau of Public Enterprises, on behalf of the National Council on Privatization, to act as the Financial Adviser and Consortium Lead on the privatization and sale of 100% equity stake in Afam Power Plc and Afam Three Fast Power Limited.
The transaction commenced in 2018 with a broad auction process that shortlisted local and foreign potential investors. FBNQuest in its role as financial adviser and consortium lead, conducted an extensive due diligence exercise and screened the technical and financial bids submitted by both local and foreign investors. Transcorp Power Consortium emerged as the preferred bidder on the transaction following the extensive exercise.
The process was concluded after successful negotiation of the transaction agreements with the preferred bidder, and the share sale and purchase agreement were executed at a signing ceremony which held at the Presidential Villa in November 2020. The transaction was significant, as the successful completion represents a landmark in the Federal Government’s commitment to the reformation of the Power sector.
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The transaction adds to the organisation’s impressive deal portfolio and highlights its capabilities in the successful execution of sizeable capital market and commercial debt transactions. Speaking on the transaction, Mr Taiwo Okeowo, Deputy Managing Director of FBNQuest Merchant Bank, stated, “We are proud to be working with the Bureau of Public Enterprises and other parties on this transaction”.
“As a leading investment banking institution, we understand the role we must play in supporting our clients across the private and public sector. We continue to build our team of industry experts across oil & gas, power, infrastructure, services, diversified industries, and other emerging sectors of the economy to enable us support their goals and objectives.” he added.
As a member of the FBN Holdings group, FBNQuest Merchant Bank is positioned to provide complementary services to the Group’s expansive client base of retail, high net-worth and institutional customers, while also offering a broader choice in financing, investments and transaction execution. The group continues to ensure the delivery of innovative initiatives to enhance its positioning and deliver shareholder value.