The Fund for Export Development in Africa (FEDA), the impact development arm of the African Export-Import Bank (Afreximbank), has completed the acquisition of a five-percent stake in Geregu Power, a power-generating company majority owned by Nigerian billionaire Femi Otedola.
This acquisition was made possible through a negotiated deal between APT Securities and Funds Limited and PAC Securities Limited, which is a dealing member of the Nigerian Exchange (NGX) and one of the most successful brokerage firms in Nigeria.
To prevent any market price impact on the NGX, an off-market trade was executed on Tues., Feb. 21, which valued the 125.01 million shares acquired by FEDA at N12.5 billion ($27.1 million).
The deal follows FEDA’s announcement three months ago to acquire a minority stake in the Femi Otedola-led power-generating company, as part of its commitment to supporting Africa’s energy sector, including renewables and transitional fuels.
Femi Otedola’s Geregu Power sets milestone with audited results
Geregu Power, a crucial player in Nigeria’s power sector with a capacity exceeding 430 megawatts, is set to expand its operations with the support of FEDA as a minority investor.
Earlier this year, Geregu made history as the first publicly listed company to release its 2022 audited financial report on the NGX in a timely fashion. The company’s commitment to financial transparency and accountability is unparalleled in the industry.
Despite facing obstacles such as the vandalism of its gas pipelines, which resulted in a revenue drop from $154.1 million to $103.4 million, Geregu Power overcame these challenges with innovative solutions, effective risk management, and strategic partnerships with key players. As a result, Geregu recorded a profit of $22 million and maintained its position as a leader in the industry.
Since listing on Oct. 5, Geregu shares have increased by 120 percent
Since the listing of the company’s shares on Oct. 5 under the Utility sector and Electric Power Generation sub-sector, its price on the local bourse has seen a remarkable increase of 120 percent, rising from N100 ($0.231) to N224 ($0.475) at the time of this report.
This significant growth has resulted in significant profits for investors, with the majority of the power-generating company being controlled by Otedola.