In a routine move mirroring his earlier transactions towards the end of October, Nigerian billionaire businessman Femi Otedola has divested another one million units of his shares in the rapidly growing power generation company, Geregu Power Plc.
On the floor of the Nigerian Exchange on Monday, Nov. 20, Femi Otedola — who ranks as one of Nigeria’s wealthiest individuals — executed a cross deal via his company, Amperion Power Distribution Company Limited.
Otedola trims Geregu Power stake, sells 1 million shares in a $0.49-million deal
This transaction — conducted at a price of N399 ($0.495) per share on the Nigerian Exchange — involved the divestment of 1 million shares of Geregu Power in a deal valued at N399 million ($0.49 million).
Otedola’s move comes hot on the heels of the sale of 14.81 million shares worth N5.06 billion ($6.4 million) in the power-generating company between Oct. 20 and 30. This move reduced his stake in Geregu Power from 95.56 percent to a slightly smaller but substantial 95.38 percent.
Strategic divestment amidst stellar financial performance in 2023
The strategic divestment follows the release of Geregu Power’s unaudited interim financial statement for the first nine months of 2023—this financial report underscores the company’s commendable fiscal performance throughout the January-to-September period.
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 N55.75 billion ($72.66 million) in 2023.
Geregu Power’s revenue from energy sales surges from $32.3 million to $45.3 million under Femi Otedola
Under Femi Otedola’s leadership, the company excelled across all segments. Revenue from energy sales increased from N24.78 billion ($32.3 million) in 9M 2022 to N34.8 billion ($45.3 million) in 9M 2023. Capacity charges during the review period surged from N14.23 billion ($18.54 million) to N20.95 billion ($27.23 million).
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, rising from N16.03 billion ($20.85 million) in 9M 2022 to N19.9 billion ($26 million) in 9M 2023.
