Afreximbank purchases 5% of Geregu Power shares

Bisola David
Bisola David
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Afreximbank has completed the acquisition of five per cent of the shares of Geregu Power Plc.

According to The BusinessDay, the purchase was made through its subsidiary – Fund for Export Development in Africa.

FEDA is the impact development arm of the Africa Export and Import Bank.

“Today, February 21, 2023, the company secretary for Geregu Power Plc, wrote in a notice that FEDA now owns 5% of the company’s shares as a result of this transaction. The purchase of the shares was completed today even though the purchase agreement had been made since December 21, 2022.”

Geregu Power was acquired by billionaire businessman, Mr Femi Otedola, shortly after he sold his interests in Forte Oil a few years ago.

The Nigerian Exchange Limited introduced Geregu Power Plc on the Main Board of The Exchange on October 5, 2022. Under the Utilities sector and Electric Power Generation sub-sector of the Nigerian Exchange, 2.5 billion ordinary shares of Geregu were listed at N100 each, with the trading symbol GEREGU. The shares are currently trading at a 52-week high of N246.4.

The leading Nigerian power generation company Geregu Power is the first GenCo to be placed on the Nigerian Exchange main board, a listing area for well-established businesses with track records of success.

The listing of Geregu’s shares had increased Nigerian Exchange’s market capitalization by N250 billion, enhancing liquidity and presenting chances for wealth creation.

The market value of Geregu Power Plc is around N616 billion at the present price.

For the time period that concluded on December 31, 2022, the firm has declared a final dividend of N8 per share. The final dividend’s qualification date is February 27, 2023.

The N40.09 billion Series 1 Fixed Rate Senior Unsecured Bond (the Bond) issued by Geregu Power was listed on the FMDQ Securities Exchange last year.

The Bond was added to the FMDQ Exchange website’s daily quotations and listings page, at which point it was made available for trade.

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