Nigerian billionaire Femi Otedola has further trimmed his stake in Geregu Power Plc., selling 1.9 million shares for N1.9 billion on Tuesday to bring his total divestment in the company to N15.97 billion over the past five months.
Mr Otedola has been steadily offloading shares in Geregu Power Plc, his majority-owned power generation company.
The sales, however, represent a minor decrease in his combined ownership with Amperion Power Distribution Company Limited, his holding company, which remains dominant at 78.084 percent.
Since last October, Amperion has sold 34.72 million shares in cross-deal stock sale, according to regulatory filings seen by Pluboard. The biggest volume of sale was on Feb. 1 when it offloaded 12 million units in Geregu at N568 per share.
The share sales coincided with a significant rise in Geregu’s stock price, which reached N1,000 per unit this week, a substantial increase from N300 in October.
Geregu surge
Geregu boasts an installed capacity of 435 megawatts and contributes roughly 10% of Nigeria’s electricity.
The company has experienced impressive financial performance, recording a near three-fold increase in profits to N16.1 billion for 2023. Additionally, Geregu’s stock has witnessed a remarkable 151 percent surge year-to-date, making it the second-best performer on the Nigerian Exchange.
The company offered shareholders N8 per share as dividend for last year, which promised to give Mr Otedola N15.9 billion in cash reward, at his 78.6 per cent stake.
While the specific reasons behind the stock sales was not clear, common investor motivations include portfolio diversification, raising capital for new ventures, or profiting from market gains.
| Date | Number of shares sold | Price per unit (naira) | Amount (naira) |
| March 5 | 1,900,000 | 1,000 | 1,900,000,000 |
| Feb. 1 | 12,000,000 | 568 | 6,816,000,000 |
| Dec. 29 | 30 | 360 | 10,800 |
| Dec. 28 | 5,000,000 | 360.3 | 1,801,500,000 |
| Nov. 22 | 1,000,000 | 399 | 399,000,000 |
| Oct. 31 | 4,800,000 | 395 | 1,896,000,000 |
| Oct. 30 | 100,000 | 370 | 37,000,000 |
| Oct. 27 | 9,917,717 | 315 | 3,124,080,855 |
| Total | 34,717,747 | 15,973,591,655 |
Source: NGX
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