The management of Benin Electricity Distribution Company (BEDC) 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 company explained that the said credit facilities have in the meantime become subject of litigation in a Court action instituted by Vigeo Holdings Limited (owners of BEDC) and other plaintiffs with Suit No: FHC/L/CS/239/22 – and therefore, subjudiced.
In a statement issued by Ibeamaka Odoh, the Corporate Affairs Officer of
the company, “Any attempt by Fidelity Bank and/or BPE to intervene in BEDC in the manner being reported will be illegal, unlawful and will be resisted.”
According to Ibeamaka, “The purported activation seeks to takeover of the Board of BEDC over the inability to repay the loans obtained to acquire majority stakes in the DisCos in furtherance of the 2013 privatisation exercise.
“BEDC states unequivocally that there is no contractual, statutory or regulatory basis for such, And for the avoidance of doubt, the shares of BEDC have not been given as security to Fidelity Bank or to any other party.”
He therefore urged the disco customers, investors and partners in the electricity business to ignore the trending reports and assured them of “continuing smooth operation”.
