Cameroon buys power utility Eneo from Actis in $139 million deal

By Amindeh Blaise Atabong

YAOUNDE, Nov 19 (Reuters) - Cameroon has acquired British private equity firm Actis' 51% stake in power utility Eneo for 78 billion CFA francs ($139 million), the finance minister said on Wednesday, in a deal giving the government 95% control of the company.

The agreement ends over a decade of private majority ownership of Eneo, which has struggled with electricity shortages, unpaid bills and rising debt. The remaining 5% stake will continue to be held by the company's employees.

"The state has taken a decisive step to regain control of a strategic asset," Finance Minister Louis Paul Motaze said at the signing ceremony.

"This signature marks the successful end of complex discussions, and it reflects our commitment to ensuring that Eneo can better serve the national interest," he said.

Actis acquired the majority stake in 2014 under the central African country's energy sector reform programme aimed at attracting investment and improving electricity reliability. But chronic electricity shortages amid rising demand, millions of dollars in unpaid bills, debts to service providers and financing constraints have increasingly pushed the company to restructure.

The minister said the takeover would allow Cameroon to push ahead with reforms intended to strengthen the utility's financial position and accelerate long-delayed investments in generation and transmission.

Eneo produces about 70% of the energy it distributes and relies on independent producers for the rest.

Government officials did not disclose the timetable for completing the transfer of shares but said the move would be accompanied by broader electricity sector reforms.

($1 = 561.5000 CFA francs)