Bresson Consortium, Others Submit Bid For NDPHC Power Plant

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Power stationA pre-qualified company for the sale of Omotosho Generation Company, Bresson Consortium, led others at the weekend in the submission of bidding documents further to 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 yesterday at the Nile Street, Maitama headquarters of the NDPHC in adherence to the specified technical and financial suitability criteria, ahead of the evaluation processes of the agency’s experts.

The Bresson Consortium was created for the purpose of the acquisition of 80% shareholding in Omotosho Generation Company Limited and raised acquisition finance through Equity and Debt to acquire 80% of Omotosho, with the plan to achieve a debt to Equity ratio of 70:30 for the capital structure.

The consortium intends to fund 30% of the required acquisition funding through Cash Equity from BressCo Shareholders, in conjunction with its Financial Advisors (Kappafrik Limited & Sana Elias Group) and Strategic Investors.

Kappafrik Limited shall be responsible for creating the Fund Raising model to fund the 30% 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% 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). The company was founded in April 2005. It has committed to its first 90 MW Simple Cycle gas fired power plant at Magboro, Lagos corridor of Ogun state. The plant is configured on 2 GE LM6000 Turbines and scheduled for commissioning in November 2014.

Its alliance partners Istro Energo Group of Slovakia, and equipment suppliers, General Electric of USA-are leading industry players with far reaching global network and presence. The Company possesses an in-depth understanding of the issues and challenges facing the stable and sustainable development of electricity generation. Besides Mr. Olawepo, other leaders of the consortium are Mr. Vincent Gueneau, Mr. Vincent O. Ebuh, and Ms. Barakat Balmelli.

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