Transnational Corporation of Nigeria (Transcorp), one of Nigeria’s largest listed conglomerates, has merged its two power businesses into a single entity, Transcorp Power.
Transcrop announced on Sunday that it had successfully merged Transcorp Ughelli Power Limited and Ughelli Power Plc. The company said it wanted to harmonize the management and operations of its power subsidiaries for greater efficiency.
“While our structure has changed, our objectives have not. As one of the leading power generating companies in Nigeria, our focus remains on aggressively increasing our output and expanding our capacity to generate at least 25 percent of Nigeria’s power,” said Tony O. Elumelu, CON, Chairman of the board of Transcorp Power.
Transcorp Ughelli Power Limited (TUPL) won the bid for the acquisition of Ughelli Power Plc, one of the six power generation companies of the Power Holding Company of Nigeria (PHCN) privatised by the Federal Government in September 2012. By August 2013, Transcorp Ughelli Power made full payment of $300 million to the Bureau of Public Enterprises, representing 100 per cent of TUPL’s bid price for the plant.
Following the acquisition, TUPL has increased the available capacity at Ughelli Power Plant from 160 MW (November 2013) to 610 MW (December 2014), according to figures from Transcorp’s 2014 annual report.
“We have increased power generation by more than 525% in the two years since we acquired Ughelli Power Plant, which makes ours the fastest growing among privatised power assets in the country,” said Adeoe Fadeyibi, Transcorp Power CEO. “We are aggressively pursuing our generation recovery capacity programme and are on course to deliver 760MW by December 2015.”