Femi Ashekun/
Billionaire investor, Femi Otedola, has sold his majority stake in Geregu Power Plc for N1.088 trillion, marking one of the largest equity transactions on the Nigerian Exchange in recent years.
The transaction was disclosed by the Nigerian Exchange Limited on Monday, confirming that the deal was financed by a consortium of banks led by Zenith Bank Plc.
Otedola’s investment vehicle, Amperion Power Distribution Company Limited, previously held close to 80 percent of Geregu Power, one of Nigeria’s leading gas-fired electricity generation companies.
Following the sale, he retains a minority interest in the firm.
Market data from the NGX show that Geregu Power was listed in October 2022, becoming Nigeria’s first power generation company to be quoted on the exchange.
Since its listing, the company has been among the most capitalised stocks on the bourse, reflecting strong investor confidence in the power sector reforms and the company’s operational performance.
Geregu Power currently has an installed capacity of 435 megawatts, a significant increase from about 80 megawatts when Otedola took control of the formerly moribund plant.
The company plays a strategic role in Nigeria’s electricity supply, selling power to the national grid under long-term agreements regulated by the Nigerian Electricity Regulatory Commission.
According to people familiar with the matter, Otedola is expected to focus more on expanding his interests in the banking sector.
He is the chairman of First HoldCo Plc, the parent company of First Bank of Nigeria Limited, and holds a 17.01 percent stake, making him the single largest shareholder in the bank, which was founded in 1894.
Public market records show that First Bank shares traded at about N5 when Otedola began accumulating his stake, but closed at N53 at the end of last week, underscoring a sharp increase in shareholder value over the period.
Otedola first made his mark in the energy industry with the establishment of Zenon Oil and Gas in 2003, which grew to dominate Nigeria’s diesel supply market.
He later acquired African Petroleum in 2007, rebranding it Forte Oil, before divesting in 2019 to concentrate fully on power generation through Geregu.
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