Otedola’s Geregu Power Earmarks N40bn To Buy FG’s Power Plant, 15 Other Firms Are Also Interested
- The federal government is looking to sell five National Integrated Power Projects (NIPPs) and have shortlisted 16 companies
- One of the companies bidding to buy one is Geregu Power owned by charismatic billionaire Femi Oteldola
- Details from Geregu Power 2022 financials show the company raised over N40 billion as it looks to win the race
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The federal government and states want to sell off five National Integrated Power Projects (NIPPs) and hope to raise about N260 billion.
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.
Source: UGC
List of power plants up for sale
The Federal Government is looking to privatise the following power plants;
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- Calabar Generation Company Limited, Cross River state
- Omotosho Generation Company Limited, Ondo state,
- Olorunsogo Generation Company Limited, Ogun state,
- Benin Generation Company Limited at Ihovba, Edo state
- Geregu Generation Company Limited, Kogi state.
Who are the other bidders
Aside from Otedola's firm, pre-qualified bidders include Ardova Plc, Sifax Energy, Quantum Megawatt Consortium, Geoplex Drillteq Limited, and Mota-Engil Nig.
Globeleq Africa Limited, Pacific Energy Company Ltd., Asfalizo Acquisition Limited, and Central Electric and Utilities Ltd. have also been chosen to bid on the power projects.
Launderhill PJB, North South Power Consortium Unicorn Power Genco Limited, ENL Consortium Limited, Lauderhill Tata, and Connaught Energy Services Limited are also on the list.
How Otedola wants to achieve its plan
The billionaire is believed to be eyeing Geregu Generation Company Limited, Kogi state, to increase the capacity of Geregu Power Plant.
Check on Geregu’s financial statement for the period of 2022 submitted on the Nigerian exchange shows that Otedola company approached the debt market to raise N40.08 billion to finance its bid and boost its chance of acquiring the firm’s preferred power plant.
A part of the Geregu’s financial statement reads:
“In July 2022, the company issued N40.085billion unsecured corporate bond for a 7-year tenor and at a coupon and effective interest rate of 14.5% and 14.7% respectively.
“The net proceeds would be used to finance the acquisition of one of the power generation companies which is currently in the final stage of bidding processes by the Bureau of Public Enterprises (BPE)."
Will Otedola's company comeout successful? Only time will tell when BPE makes its final decision.
Otedola to sell shares of Its electricity company, Geregu Power, to Nigerians, adds N250bn to Stock Exchange
Meanwhile in another report Legit.ng revealed that billionaire Femi Otedola officially listed his electricity company, Geregu Power Plc, on the Nigerian exchange.
The development allows the public to become part owners by buying the company’s shares for N100 per share.
Geregu Power plc is one of Nigeria's major power generation companies (Genco), and Otedola has stated that it would be his primary business focus.
Source: Legit.ng
