Fakoyejo OlalekanAfrica Export and Import Bank (Afreximbank), a supranational bank, has acquired a five per cent stake in the electricity-generating firm, Geregu Power Plc, owned by Femi Otedola.
According to a document released dated February 21, 2023, Africa Export and Import Bank bought the shares through its subsidiary, Fund for Export Development in Africa (FEDA).
Fund for Export Development in Africa, which is an impact development unit of the Africa Export and Import Bank, concluded the share acquisition on Tuesday, February 21, 2023.
The shares were acquired five months after Otedola listed the shares of Geregu Power on the stock market of the Nigerian Exchange Limited (NGX) in October 2022.
Fund for Export Development in Africa announced last year that it intends to acquire a strategic minority stake in Otedola’s firm.
FEDA said the investment is to help develop the electricity industry through Geregu Power, which is eyeing one of Nigeria’s national assets.
In the document announcing the acquisition, Geregu wrote: “Geregu Power Plc (the Company) hereby notifies the Exchange and the investing public of the purchase of 5% of its shares by the Fund for Export Development in Africa (FEDA). FEDA is the impact development arm of the Africa Export and Import Bank (Afreximbank).
“The purchase of the shares was concluded today the 21 st of February 2023 with the purchase agreed in on the 21st of December 2022. With this purchase FEDA now currently holds 5% of Geregu Power Plc Shares.”
Meanwhile, Geregu is planning on acquiring one of the power generation companies on sale from the Bureau of Public Enterprises (BPE).
BPE is weighing bidders for the sale of five National Integrated Power Projects (NIPPs), one of which is Geregu Generation Company Limited located in Kogi state.
Otedola’s investment vehicle, Amperion Power, the majority shareholder of Geregu Power Plc, is eyeing the Geregu Generation Company to expand the current Geregu Power capacity.
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