Dipo Olowookere
By Dipo Olowookere
A multilateral trade finance institution, African Export–Import Bank (Afreximbank), has completed its acquisition of a minority stake in a Nigerian power-generating firm, Geregu Power Plc.
The lender purchased a 5 per cent equity stake in Geregu Power through its subsidiaries, Fund for Export Development in Africa (FEDA).
The deal was completed at the Nigerian Exchange (NGX) Limited on Tuesday in an off-market deal, with PAC Securities Limited as the buyer and APT Securities and Funds Limited as the seller.
Data obtained by Business Post showed that the reputable financial institution bought 125.0 million units of the company’s stocks at N100 per unit, amounting to N12.5 billion.
Recall that last December, Geregu Power announced that it had been approached by the bank for a stake in the firm, which was the first power-generating company to list its shares on the local stock exchange.
“Geregu Power Plc hereby notifies Nigerian Exchange Limited and the investing public of its discussions with the Fund for Export Development in Africa (FEDA) for the acquisition of a portion of Geregu Power Plc shares.
“FEDA is the impact development arm of the Africa Export and Import Bank (Afreximbank).
“The discussions are currently ongoing, and where these talks progress to a more advanced stage, the company will notify the exchange and the investing public in line with the rules of the exchange,” a statement signed by the company’s scribe, Mr Akinleye Olagbende, stated.
Geregu Power joined the stock market on Wednesday, October 5, 2022, and quoted a total of 2.5 billion units of its shares at N100.00 per unit by way of introduction, increasing the market capitalisation of the exchange by N250 billion.
On that day, the share price of the organisation rose by a maximum of 10 per cent at the NGX as a result of a strong appetite for Geregu stocks, closing at N110.00 per unit and driving up its market capitalisation to N275 billion from N250 billion.
But at the close of business on Tuesday, February 21, 2023, the share price was flat at N224.00, and at the time of filing this report on Wednesday, February 22, 2023, it had gained 10.00 per cent to trade at N246.40.
Geregu Power was acquired by billionaire businessman, Mr Femi Otedola, shortly after he sold his interests in Forte Oil a few years ago.
