The management of Benin Electricity Distribution Company, BEDC Plc, has said there was no legal basis for the takeover of the company, following the purported activation of the call on its collateralised shares by Fidelity Bank.
The purported activation seeks to take over the respective boards of Kano Electricity Distribution Company, Kaduna Electricity Distribution Company and BEDC Electricity Plc (the DisCos) over the inability to repay the loans obtained to acquire majority stakes in the DisCos in furtherance of the 2013 privatisation exercise.
BEDC Plc in statement, in Benin City, Edo State, yesterday, said: “The referenced report also alleges that certain parties have been appointed as board members, Independent Directors and Managing Directorof BEDC Electricity Plc. We understand these appointments have been communicated to the Bureau of Public Enterprises, BPE, and the Nigerian Electricity Regulatory Commission.
“There is no contractual, statutory or regulatory basis for such. For the avoidance of doubt, the shares of BEDC have not been given as security to Fidelity Bank or to any other party.
“As we understand it, Vigeo Holdings Limited, VHL, a non-shareholder of BEDC, obtained credit facilities from Stanbic IBTC Bank Limited, Fidelity Bank Plc and Keystone Bank Plc, the VHL Lenders.
“We further understand that the said credit facilities, and any enforcement action in relation thereto, have in the meantime become subject of litigation in a court action instituted by VHL and other plaintiffs.