Sale of shares by Actis raises concerns among consumers

The British investment fund Actis, holder of 56% of shares in the national production company and distribution of electricity Eneo Cameroon SA disposes of its assets in the Kribi Power Development Company (KPDC) and Dibamba Power Development Company (DPDC) in favour of the consortium controlled by the Norwegian fund Nordfund and British finance institution Commonwealth Development Corporation (CDC Group) for $ 227 million, or about FCFA 125 billion.

Since the announcement of this transaction, consumers are concerned about the likelihood of Actis to withdraw its shares in Eneo Cameroon, a strategic partner of the State in the electricity sector.

In its edition of Friday, September 18, 2015, state newspaper Cameroon Tribune states that the period between the purchase and resale by Actis within KPDC and DPDC (May 23, 2014 - September 14, 2015) is quite short. Only 15 months exactly as the negotiations on this transaction were started in February. Hence the worrying question of Cameroonian consumers.

Babissakana, financial engineer indicates in the columns of the newspaper that "the option of output in the short term by Actis Capital of Eneo objectively seems inconceivable. As Actis can obtain a substantial gain on its investment in Eneo, it is essential that its professional management teams can boost the value creation within the company for some time before considering an honorable exit which will be profitable for its investors."

To reassure many, the interviewee explains that "during the purchase transaction of AES Corp shares, we had already indicated to stakeholders that Cameroonian Actis is a financial investor, different from an industrial investor that aims to develop an industrial project over a long period. The investor usually has a management target period of 7 to 10 years maximum."

Cameroon Tribune states that a declaration by the State of Cameroon (shareholder in KPDC and DPDC) to change its control in these two companies will inform the public about the profile and skills of the new manager, the conditions under which the share transfer operation took place among others.

The paper said under the terms of the shareholders' agreement, it is expected that in case of change of control of one of the shareholders, the latter shall notify the State of Cameroon which has the right, if it considers that the change of control will have negative consequences on society, to acquire such shares or let them be acquired by a third party.