South Africa’s Eskom gets consent to unbundle transmission division

By Mary-Katherine Stinson

Lexington, Ky., April 3 – Eskom Holdings SOC Ltd. announced on April 2 that it received consent from its creditors to dispose of its transmission division, transferring it to wholly owned subsidiary, National Transmission Co. South Africa SOC Ltd., according to a notice.

The legally binding asset transfer agreement was executed on Dec. 17, 2021 and was subject to certain suspensive conditions, including obtaining consents.

The company stated in the release that all the conditions have been met.

The implementation of the unbundling is now in process, which will take several steps and require the sending of notifications.

The company stated in the release that the transmission unbundling is essential to allow much-needed new grid access, establish a level playing field across electricity sellers, encourage private sector investment in generation and help Eskom overcome its current operational challenges.

Lazard acted as financial adviser and White & Case and ENS acted as international and local legal advisers, respectively, to Eskom for the transaction.

Eskom is South Africa’s primary electric supplier.

© 2015 Prospect News.
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