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Nigerian billionaire businessman Femi Otedola has sold off shares worth N5.06 billion ($6.4 million) in his power generation company, Geregu Power Plc, as part of a recent transaction on the Nigerian Exchange.
The share sale, executed on the Nigerian Exchange, involved 14.81 million units of shares and was carried out in three separate deals between Oct. 20 and 30, through Otedola’s company, Amperion Power Distribution Company Limited.
This move by Otedola reduced his stake in Geregu Power from 95.56 percent to a slightly smaller but still substantial 95.38 percent. Despite the reduction in his holdings, he remains a significant force in the company, maintaining control and influence.
The decision to offload shares comes shortly after Geregu Power’s unaudited interim financial statement for the first nine months of 2023 was released.
The company reported impressive growth, with a remarkable 43-percent surge in revenue.
The figures rose from N39 billion ($50.8 million) in the same period in 2022 to a robust N55.75 billion ($72.66 million) in 2023.
Under Otedola’s guidance, the company excelled across all segments. Revenue from energy sales increased from N24.78 billion ($32.3 million) to N34.8 billion ($45.3 million).
Simultaneously, capacity charges surged from N14.23 billion ($18.54 million) to N20.95 billion ($27.23 million) during the review period.
Despite incurring impairments on financial assets totaling N3.17 billion ($4.12 million) and administrative expenses amounting to N5.87 billion ($7.64 million), Geregu Power achieved a 24-percent increase in operating profit. Operating profit rose from N16.03 billion ($20.85 million) in 9M 2022 to N19.9 billion ($26 million) in 9M 2023.
Otedola’s decision to sell a portion of his shares in Geregu Power reflects his confidence in the company’s financial strength and strategic direction. It also underscores his ability to leverage his investments and make calculated financial decisions to maximize returns.
