Article Summary
- Nigerian billionaire Femi Otedola sold a portion of his majority shares in Geregu Power Plc, amounting to 2,823,092 shares at an average price of N290.7, valued at N820.6 million.
- Otedola’s brother, Paul Olurotimi Otedola, purchased 300,000 units of Geregu Power Plc shares at N288.9 per share, totaling N86.67 million.
- Additionally, he bought 1,875,000 shares at N288.9 and 948,092 shares at N290.7, bringing the total value of his purchases to N903.967 million.
Nigerian billionaire, Femi Otedola sold shares from Geregu Plc, a company he owns majority shares in.
According to details posted on the NGX, the billionaire sold1,875,000 @ N288.9 and 948,092 @ N290.7 respectively of the company shares from an undisclosed seller. The total of 2,823,092 shares @N290.7 is valued at N820.6 million only.
The amount of shares sold represents about 0.1% of the company’s total outstanding shares.
In a similar press release, Geregu Power also revealed Mr. Paul Olurotimi Otedola, a brother to billionaire investor and chairman of Geregu Power Plant, Femi Otedola also purchased 300, 000 units of shares worth @N288.9 per share.
The notice signed by Akinleye Olagbende, Company Secretary indicated that Mr. Paul Olurotimi Otedola, a brother to the majority shareholder, Mr. Femi Otedola on May 8th, 2023 purchased 300,000 units of Geregu Power Plc at N288.9 per share valued at N86.670 million.
Also on 8th May 2023, he purchased 1,875,000 units of the company’s shares at N288.9 worth N541.688 million. Additionally, on the 9th of May 2023, Olurotimi Otedola bought shares 948.092 shares at N290.7 per share valued at N275.610 million. This brings the total value of shares purchased to N903.967 million.
The company’s share price was trading at about N290.7 per share on Friday, May 12th, down from its year high of N323 per share. The share price of the company was N100 when it opened trading on the 5th of October 2023.
Further analysis showed that Geregu Power closed the trading day with N726.750 billion in market capitalization as against N250 billion it was listed on 5th October.
The company paid a dividend of N8 per share paying about N20 billion in dividends to its shareholders. The free Float of the Company as of 31 December 2022 was 111,073,957 representing 4.44%.
What you should know
The announcement that Afreximbank was to acquire a minority stake in the company sparked investors ‘optimism about the shares of the company.
The Fund for Export Development in Africa (FEDA), the development impact investment platform of African Export-Import Bank (Afreximbank) had in December announced that it has received internal approvals to acquire a minority stake in Geregu Power Plc, subject to satisfactory diligence and documentation.
FEDA, in a statement, said it has made a strategic decision to support leading energy platforms across Africa, including the renewables and transition fuels sectors as part of its intervention efforts in Africa’s energy sector.
