Fola Adeola, in addition to his banking achievements, is known for his contributions to entrepreneurship through the FATE Foundation and his involvement as a member of the Commission for Africa. Although no official reason was provided for the sale, analysts suggest it may be a strategic financial decision.
Lagos, Nigeria – Fola Adeola, co-founder of Guaranty Trust Bank (GTBank) and a renowned figure in Nigeria’s financial landscape, has sold 18.25 million shares in Aradel Holdings Plc for N10.9 billion.
The transaction, disclosed in a regulatory filing to the Nigerian Exchange Limited (NGX), occurred on December 31, 2024, with each share sold at N598.50. Before the sale, Adeola was a significant shareholder in Aradel Holdings, holding more than 5% equity in the company.
Insights into Aradel Holdings
Aradel Holdings Plc, formerly known as Niger Delta Exploration & Production Plc, is a prominent energy company with major investments in oil and gas. The company’s Secretary, Titi Omisore, confirmed in a statement that Adeola’s sale was a routine insider transaction conducted in compliance with regulatory guidelines.
Fola Adeola, in addition to his banking achievements, is known for his contributions to entrepreneurship through the FATE Foundation and his involvement as a member of the Commission for Africa. Although no official reason was provided for the sale, analysts suggest it may be a strategic financial decision.
Aradel’s Recent Activities and Market Performance
Aradel Holdings has continued to solidify its position in Nigeria’s energy sector. Following its public listing on the NGX at N702.69 per share, the company transitioned from over a decade of trading on the NASD OTC market.
The company has also made significant investment moves, including plans to acquire a 5.14% stake in Chappal Energies Mauritius Limited, which focuses on upstream energy projects across Africa. Additionally, Aradel announced intentions to acquire the Olo and Olo West oil fields in Nigeria from TotalEnergies and the Nigerian National Petroleum Corporation (NNPC) for $16 million, with an additional $3.5 million in deferred payments.
Exceptional Financial Performance
Aradel Holdings has demonstrated impressive financial growth in recent years. Despite a revenue dip in 2020 due to the COVID-19 pandemic, the company bounced back with a 58.53% year-over-year (YoY) growth in 2021 and an extraordinary 234.51% YoY growth in 2023. Key drivers of this growth included increased crude oil output (up 146.82% YoY), higher gas production (up 48.6% YoY), and a surge in refined products (up 74.62% YoY).
The company has sustained its growth trajectory in 2024, reporting a 207% YoY revenue increase in the first nine months, reaching N377.58 billion. Elevated global crude oil prices and increased production capacity have been instrumental in driving Aradel’s robust financial performance.
Market Implications
Adeola’s share sale highlights ongoing investor interest in Aradel Holdings as the company strengthens its foothold in the energy industry. Aradel’s strong market performance and strategic acquisitions are attracting both local and international investors, further enhancing its credibility on the Nigerian Exchange.
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