PROPOSED ACQUISITION OF POWERGEN NIGERIA ASSETS LIMITED BY CROSSBOUNDARY ENERGY ACCESS HOLDINGS
Case type: MRR Form 2 (Simplified Procedure) Case Parties: The Acquirer Name/CrossBoundary Energy Access Holding Address/C/O AXIS Fiduciary Ltd, 2nd Floor, The Axis, 26 Cybercity, Ebene, Mauritius, 72201 Telephone Number/+254700068803 Email Address/www.CrossBoundary.com/Energy/The Target Name/PowerGen Nigeria Assets Limited RC Number/1677215 Address/19 Ogunyemi Road, Oniru Estate, Victoria Island, Lagos Telephone Number/+234 905 932 6978 Email Address/info@powergen-re.com/The Sellers Name/WindGen Power USA Inc. Address/2711 Centerville Road, Suite400, Wilmington, DE 19808. Telephone Number/+1 (908) 675-0632 Email Address/kscribner@powergen-re.com;Name/PowerGen Renewable Energy Nigeria Limited Address/19 Ogunyemi Road, Oniru Estate, Victoria Island, Lagos Telephone Number/+234 701 981 2076 Email Address/ienekwe@powergen-re.com Name/Oikocredit, Ecumenical Development Cooperative Society U.A Address/Berkenweg 7, 3818 LA Amersfoort, The Netherlands Telephone Number/+31 615 614 297 Email Address/jtodd@oikocredit.org Name/Stichting Hivos – Triodos Fonds, Triodos Groenfonds N.V., Triodos SICAV II (acting on behalf of and for the benefit of it sub-fund Triodos Emerging Renewable Energy Fund). Address/Hoofdstraat 10, 3972 LA Driebergen-Rijsenburg, The Netherlands Telephone Number/+31 (0)30 693 6592 Email Address/marius.groenenberg@triodos.nl Name/EDFI Management Company SA which manages the Electrification Financing Initiative Address/Rue du Trône 4, 1000 Brussels, Belgium Telephone Number/+32479184017 Email Address/q.antoine@edfimc.eu/Name/PowerGen Renewable Energy Nigeria Limited Address/19 Ogunyemi Road, Oniru Estate, Victoria Island, Lagos Telephone Number/+234 701 981 2076 Email Address/ienekwe@powergen-re.com Name/Oikocredit, Ecumenical Development Cooperative Society U.A Address/Berkenweg 7, 3818 LA Amersfoort, The Netherlands Telephone Number/+31 615 614 297 Email Address/jtodd@oikocredit.org Name/Stichting Hivos – Triodos Fonds, Triodos Groenfonds N.V., Triodos SICAV II (acting on behalf of and for the benefit of it sub-fund Triodos Emerging Renewable Energy Fund). Address/Hoofdstraat 10, 3972 LA Driebergen-Rijsenburg, The Netherlands Telephone Number/+31 (0)30 693 6592 Email Address/marius.groenenberg@triodos.nl Name/EDFI Management Company SA which manages the Electrification Financing Initiative Address/Rue du Trône 4, 1000 Brussels, Belgium Telephone Number/+32479184017 Email Address/q.antoine@edfimc.eu Published: 04 Dec. 2023The proposed transaction is an acquisition by CrossBoundary Energy Access Holdings (the Acquirer) of 100% of the issued share capital of PowerGen Nigeria Assets Limited (the Target) from the current shareholders of the Target, being: i) Oikocredit International (Oikocredit); ii) Stichting Hivos Triodos Fonds, Triodos Groenfonds N.V., and Triodos SICAV II (acting on behalf of and for the benefit of its sub-fund Triodos Emerging Markets Renewable Energy Fund) (together, Triodos); iii) EDFI Management Company SA (EDGI MC), which manages the Electrification Financing Initiative (ElectriFi"); and iv) WindGen Power USA, Inc, (WindGen); & v) PowerGen Renewable Energy Nigeria Limited (PRENL"), (WindGen and PRENL collectively referred to as (PowerGen") CrossBoundary Energy Access Holdings (CBEA Holdings or the Acquirer) is a Mauritius-registered holding company which invests in the mini-grid market in Nigeria and other Sub-Saharan African countries; it has no subsidiaries, investments, or business activities in Nigeria. CBEA Holdings utilises blended finance and an innovative project financing structure to unlock capital for mini-grids and invests such blended capital directly into mini-grid projects serving rural African households and businesses. PowerGen Nigeria Assets Limited (PNAL or Target Company) is a Nigeria-incorporated project company established for the purpose of developing, owning and operating mini-grid projects in rural communities in Nigeria. CBEA Holdings and PNAL believe universal access to electricity is a vital step towards ending poverty. The proposed merger will bring electricity to 55,000 Nigerians in rural communities, while simultaneously bringing returns to investors. PNAL operates mini-grids in Ondo and Niger states. These mini-grids power every need from household lighting, to health clinics, to businesses, stimulating economic activity and growth. The proposed merger will have minimal impact on the overall Nigerian power market, with the combined entity representing less than 1% of market share in terms of power generation, revenue, and customers. There are no horizontal or vertical overlaps between CBEA Holdings and PNAL, and the entities are not active in the same products or geographical market. Given the increasingly competitive nature of the Nigerian power market, and the small share of the market that the combined entity will represent, the proposed merger will not result in an increase in market consolidation or barriers to entry.
