Fakoyejo OlalekanSerial investor, Femi Otedola, has sold some of his shares in Geregu Power Plc, where he is the majority shareholder and chairman.
According to a document filed with the Nigerian Exchange Limited (NGX) on Wednesday, Otedola sold 2.82 million shares to take out N820.67 million from his investment in Geregu.
Otedola sold the shares between Monday, 8 May and Tuesday, 9 May. The breakdown of the sales showed that he sold 1.87 million shares two days ago and 948,092 the day after.
Prior to the sale of shares, Otedola owned 2.388 billion shares, representing 95.55 per cent controlling stake, worth N694.45 billion.
Following the sales, Otedola’s investment in Geregu, both direct and that held indirectly through his investment firm, Amperion Power Distribution Limited, dropped to 2.386 billion shares, valued at N693,63 billion – this is 95.44 per cent stake.
Meanwhile, note that Otedola sold the shares after attempting to wrestle control of Transnational Corporation (Transcorp) from Tony Elumelu, the majority shareholder and chairman of Transcorp.
Prime Business Africa previously reported that Otedola offered to buy Transcorp for N250 billion but the offer was turned down, while his attempt to become the majority shareholder was also blocked by Elumelu.
On Tuesday, Otedola revealed that he previously owned majority shares in Transcorp, but Elumelu allegedly tricked the Geregu chairman into selling to him by posing as an American company.
“I became Chairman of Transcorp Hotel in 2007 with a shareholding of 5% and unknowingly Tony gradually started buying shares quietly.
“By the following year in 2008, I went bankrupt in Nigeria. Tony proceeded to take my shares in UBA to service the interest on my loans and he also took over my shares in Africa Finance Corporation, where I was the largest shareholder.
“Shortly after, Albert Okumagba informed me that an American firm wanted to acquire my shares in Transcorp, which I then agreed to sell. However, this supposed American firm turned out to be Tony Elumelu. The revelation of this prompted me to resign as Chairman of the hotel,” Otedola wrote in a long statement.
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