In a significant financial move, Femi Otedola, the renowned serial investor, has pocketed approximately N399 million after selling 1 million units of his Geregu shares through Amperion Power Distribution Company Limited. The transaction details, revealed in a corporate document submitted to the Nigerian Exchange Limited (NGX) on Wednesday, outline the specifics of the cross-deal stock sale.
The transaction took place on Monday, November 20, 2023, during trading hours from 10:00 am to 2:20 pm. Otedola offloaded the shares at N399 per unit in a cross-deal, a scenario where buy and sell orders are matched without being posted to the exchange or made available to other traders. The identity of the other party involved in the deal remains undisclosed, according to reports by Punch.
This recent transaction marks Otedola’s second deal in the last few weeks. In a prior cross-deal on October 30, 2023, N1.89 billion worth of Geregu shares were exchanged. Additionally, on October 31, 2023, a total of 4.8 million units of the power generation company’s shares were traded at N395 per unit.
Geregu Power, acquired by Amperion Power, a subsidiary of Forte Oil owned by Otedola in 2013, made history by becoming the first power company in Nigeria to be listed on the NGX in 2022. As of June 30, Amperion Power held 2.06 million shares in Geregu, constituting 82.45% of the total shares. Otedola directly owned 1,245 shares, equivalent to 0.00005% of the company’s stakes at the end of the first half of the year.
The financial statement of Geregu Power as of June 2023 revealed a post-tax profit growth of N11.36 billion in Q3. Meanwhile, Amperion Power, a substantial shareholder in Geregu Power, has earmarked N40 billion for the acquisition of the federal government’s power plant, alongside 15 other firms expressing interest, as reported by Legit.ng earlier.
This development aligns with ongoing efforts by the federal government and states to sell off five National Integrated Power Projects (NIPPs) with the hope of raising approximately N260 billion. The Bureau of Public Enterprises (BPE) has shortlisted 16 companies bidding for the acquisition of these power generation companies, with Femi Otedola’s Amperion Power standing out as a key player in the unfolding energy landscape.
