Renowned Nigerian billionaire, Femi Otedola, recently divests shares from Geregu Plc, a company he holds a majority stake in. The transaction details, disclosed on the NGX, indicate that Otedola sold 1,875,000 shares at N288.9 and 948,092 shares at N290.7, totaling 2,823,092 shares valued at N820.6 million. This represents approximately 0.1% of the company's total outstanding shares. In a related development, Geregu Power Plant announced that Paul Olurotimi Otedola, the brother of Femi Otedola and an esteemed investor, acquired 300,000 shares at N288.9 per share.
On the 8th of May 2023, Mr. Otedola made a significant investment by purchasing 1,875,000 units of shares from the company at a price of N288.9 per share, amounting to a total of N541.688 million. Furthermore, on the 9th of May 2023, Olurotimi Otedola acquired an additional 948,092 shares at a rate of N290.7 per share, valued at N275.610 million. Overall, the total value of the shares purchased by Mr. Otedola amounted to N903.967 million.
As of Friday, May 12th, the company's share price was trading at approximately N290.7 per share, a decrease from its highest point of N323 per share during the year. Notably, the company's shares were initially priced at N100 when trading commenced on October 5th, 2023.
A closer examination of Geregu Power revealed that it concluded the trading day with a market capitalization of N726.750 billion, significantly higher than its listing value of N250 billion on October 5th. This indicates substantial growth and market confidence in the company.
The Recent Femi Otedola & Tony Elumelu Saga
A few weeks ago, billionaire businessman Femi Otedola made headlines as he sold his significant 6.3% stake in Transnational Corporation Plc (Transcorp), a prominent conglomerate involved in power generation. The shares were purchased off-market by tycoon Tony Elumelu after several weeks of transactions.
However, in a surprising turn of events, Mr. Otedola has accused Tony Elumelu, the Chairman of Transcorp, of repeatedly betraying him during his most vulnerable moments in business. This revelation came to light through a statement released by Mr. Otedola, marking his first public intervention in the ongoing battle for the future of Transcorp. In his statement, Mr. Otedola candidly shared the story of his financial downfall in 2008 and how he felt betrayed by Mr. Elumelu during that difficult period.
Read Femi Otedola’s Full Statement here: https://www.investingport.com/billionaire-femi-otedola-exposes-tony-elumelu-following-transcorp-takeover-fallout/
What Else Is There To Know?
•Investor optimism regarding the shares of the company soared following the announcement of Afreximbank's plan to acquire a minority stake in the company.
•The Fund for Export Development in Africa (FEDA), which serves as the development impact investment platform of African Export-Import Bank (Afreximbank), disclosed in December that it had obtained internal approvals to proceed with the acquisition of a minority stake in Geregu Power Plc, pending satisfactory due diligence and documentation.
•In a statement, FEDA highlighted its strategic decision to provide support to prominent energy platforms across Africa, with a particular focus on the renewables and transition fuels sectors. This initiative aligns with FEDA's broader efforts to intervene in Africa's energy sector and contribute to its development.