A Danish and South African firm are locked in a bitter fight over the multibillion-shilling acquisition of a Nairobi-based thermal power plant.
The fight for the 52.4-Megawatt plant between Danish firm AP Moller Capital and South African AEP Energy Africa has spilled to the secretariat of Common Market for East and Central Africa (Comesa).
The two friends turned foes were in 2018 preparing a joint Sh6.22 billion bid for power producer Iberafrica, before the South African firm opted to out on hold the deal.
Now, AEP Energy Africa reckons that AP Moller Capital went behind its back and close the deal, which was made public early this month.
The South African firm says AP Moller Capital used insider information gleaned when they were preparing the joint bid to snap the deal, arguing that the Danish company took advantage of AEP Energy Africa lack of ready funds to close the buyout.
The details are revealed in a complaint sent to Comesa Competition Commission after efforts to get a Kenyan intervention failed to stop the deal.
In the November 2018 letter, the firm alleged that AP Moller Group which controls Africa Infrastructure Fund I K/S encouraged the termination of previous Share Purchase Agreement on the acquisition of Iberafrica Power (EA) by AEP Energy Africa Limited.
The firm also claimed its approval from the Competition Authority of Kenya was used in the deal to sell the plant to AP Moller.
EPRA Director-General Pavel Oimeke said the complaint was received, but was approved within the Kenyan laws after Iberafrica terminated the earlier deal it had with AEP.
“Iberafrica Power (EA) Limited notified the Authority of the termination of the sale and purchase agreement between Iberafrica and AEP. The reason given for the termination of the agreement was that the failure by AEP to finalise on financing despite several extensions,” said Mr Oimeke.
The deal come months after South Africa-owned AEP Energy Africa put on hold bid to acquire the Moi-era Iberafrica for Sh6.22 billion ($61.57 million).