Femi Otedola, the prominent businessman and Chairman of Geregu Power Plc, has executed a substantial divestment strategy, cashing out over N399 million from his investment in the power generation company. This marked the second notable sell-off within a month, showcasing Otedola’s strategic investor moves.
According to a corporate document submitted to the Nigerian Exchange Limited (NGX) on November 22, 2023, Otedola sold 1 million units of Geregu shares through his company, Amperion Power Distribution Company Limited. The cross-deal stock sale, which took place on November 20, 2023, saw the entrepreneur offloading shares at N399 per unit, resulting in an approximate total of N399 million.
In cross-trade transactions, buy and sell orders are matched without being posted to the exchange or shared with other traders. The identity of the other party involved in the deal was not disclosed in the provided information.
This divestment follows a prior transaction on October 30, 2023, where N1.89 billion worth of Geregu Power shares were exchanged in a cross-deal. Additionally, on October 31, 2023, 4.8 million units of the power generation company’s shares were traded at N395 per unit.
Amperion Power, a subsidiary of Forte Oil owned by Femi Otedola, acquired Geregu Power in 2013. The power company made history by becoming the first in Nigeria to be listed on the NGX in 2022.
As of June 30, 2023, Amperion Power held 2.06 million shares in Geregu, representing 82.45% of the total shares. Otedola’s direct ownership comprised 1,245 shares, equivalent to 0.00005% of the company’s stakes at the end of the first half of the year.
Geregu Power demonstrated financial strength, with its post-tax profit reaching N11.36 billion in Q3 2023, according to the company’s financial statement. Additionally, Otedola’s Amperion Power is among the 16 shortlisted companies bidding to acquire the National Integrated Power Projects (NIPPs) being sold by the federal government and states. The sale aims to generate approximately N260 billion, and Otedola’s strategic moves align with market dynamics and evolving opportunities in the power sector.