Afreximbank subsidiary acquires 5% stake in Geregu Power

The Fund for Export Development in Africa (FEDA), the impact development unit of Africa Export and Import Bank (Afreximbank), has obtained a 5 per cent stake in electricity generating firm, Geregu Power.

“The purchase of the shares was concluded today the 21st of February 2023 with the purchase agreed in on the 21st of December 2022,” Geregu said in a note to the Nigerian Exchange published on Wednesday.

Shares in the company accelerated by 10 per cent, the maximum allowed daily limit, as of 13:03 WAT to N246.4 per unit, itshighest-everr price level, following the news.

The off-market deal transferred 125 million shares of Geregu Power to FEDA, making the organisation the biggest shareholder of the company after Femi Otedola.

Until the end of last year, Mr Otedola held a 95.6 per cent interest in the company.

Afreximbank first announced the deal in early December and got approval from its internal approving authority later in the month.

This month, two of Mr Otedola’s brothers – Paul Olurotimi Otedola and Ayokunle Michael Otedola – purchased 3.7 million shares worth N809 million and 4 million shares estimated at N876 million respectively in Geregu Power.

The company reported a drop in net profit of more than a half last year, bringing its bottom line to N10.2 billion.