Nigerian Billionaire Femi Otedola Sells N399m Worth of Geregu Shares
- Geregu Power's largest shareholder, Femi Otedola, through another of his company, has decided to sell a large chunk of his shares
- This is the second huge sell-exchange transaction executed by Otedola within a month
- Geregu is one of Nigeria's leading GENCOs that uses gas turbines as a clean energy source to generate power
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Femi Otedola, the chairman of Geregu Power Plc, has cashed out over N399 million from his investment in the company.
He made the money after selling 1 million units of his Geregu shares held through Amperion Power Distribution Company Limited.
Source: Getty Images
The transaction details were disclosed in a corporate document submitted to the Nigerian Exchange Limited (NGX) on Wednesday, November 22, 2023.
According to the document, Otedola offloaded 1 million shares from his holdings in a cross-deal stock sale at N399 per unit, totalling approximately N399 million on Monday, November 20, 2023, within the trading hours of 10:00 am to 2:20 pm.
A cross-trade is when a buy and sell order is matched without the transaction being posted to the exchange or made available to other traders.
The other party in the deal was not revealed, Punch reports.
Otedola investor moves
The latest transaction is the second deal in the last few weeks, following a previous transaction where N1.89 billion worth of the firm's shares were exchanged in a cross-deal on October 30, 2023.
Also, on October 31, 2023, 4.8 million units of the power generation company were traded at N395 per unit.
Details of Geregu's power
Amperion Power, a Forte Oil subsidiary owned by Otedola, acquired Geregu Power in 2013.
The company made history by becoming the first power company in Nigeria to be listed on the NGX in 2022.
As of June 30, Amperion Power held 2.06 million shares in Geregu, 82.45 per cent of the total shares.
While Otedola directly owned only 1,245 shares, about 0.00005 per cent of the company's stakes at the end of half year.
The company's financial statement showed that as of the end of June 2023, Geregu Power's post-tax profit grew to N11.36 billion in Q3.
Otedola's Geregu Power earmarks N40bn to buy FG's power plant, 15 other firms are also interested
Legit.ng reported that the federal government and states want to sell off five National Integrated Power Projects (NIPPs) and hope to raise about N260 billion.
The Bureau of Public Enterprises (BPE) has shortlisted 16 companies bidding to acquire the power generation companies.
Femi Otedola company, Amperion Power, a substantial shareholder in Geregu Power, was listed among 16 companies.
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Source: Legit.ng
