Geregu’s Major Move: Majority Shareholder Sells One Million Shares

In a significant move impacting Nigeria’s energy sector, Amperion Power Distribution Company Limited, the majority shareholder in Geregu Power Plc, recently executed a strategic offloading of one million units of its holdings in a cross-deal stock sale. This substantial development, disclosed in a corporate notice filed with the Nigerian Exchange Limited on Wednesday, adds another layer of intrigue to the dynamics of Geregu Power’s ownership landscape.

The transaction, which unfolded on Monday, involved the exchange of one million units of Geregu Power shares at a rate of N399 per unit, totaling an approximate sum of N399 million. This event marks the second notable cross-deal involving Geregu Power shares in recent weeks, following a transaction valued at N1.89 billion, where 4.8 million units of the company’s shares were traded. Interestingly, the counterparty in this latest deal remains undisclosed, adding an air of mystery to the unfolding narrative.

On October 31, a significant volume of 4.8 million units of the power generation company’s shares changed hands at a rate of N395 per unit. Notably, the majority shareholder, Amperion Power Distribution Company Limited, was a key participant in that transaction. The sequence of these high-value transactions raises questions about the motivations and strategies underlying these exchanges, as the particulars of the other party in the deal remain shrouded in secrecy.

Amperion Power Distribution Company Limited, a subsidiary of Forte Oil and under the ownership of prominent businessman Femi Otedola, had acquired Geregu Power in 2013. This strategic move positioned Geregu as the first power company to be listed on the Nigerian Exchange Limited in 2022, marking a historic milestone for the power generation sector.

As of June 30, Amperion Power held a substantial 2.06 million shares in Geregu Power, constituting an impressive 82.45 percent of the total shares. In contrast, Femi Otedola, the billionaire entrepreneur behind Forte Oil, held a relatively modest 1,245 shares, representing a minute 0.00005 percent of the company’s stakes at the close of the half-year period.

This recent divestment by Amperion Power, reducing its shareholding in Geregu Power, prompts speculation about the company’s future strategic direction and objectives. The dynamic between major shareholders, particularly with the reduction of Amperion Power’s stake, invites analysis into the potential impact on Geregu Power’s corporate governance and overall market position.

Meanwhile, against the backdrop of these ownership maneuvers, Geregu Power Plc reported a robust post-tax profit growth, reaching N11.36 billion in the third quarter. This financial performance highlights the resilience and profitability of the company amid the evolving landscape of Nigeria’s power sector.

As the energy industry continues to witness significant shifts and strategic moves, stakeholders and investors keenly await further developments in Geregu Power’s corporate trajectory. The undisclosed counterparty in the recent cross-deal, coupled with the sequential high-value transactions, adds an element of intrigue, leaving the market abuzz with speculation and anticipation for the next chapter in the Geregu Power story. Stay tuned to Infostride News for comprehensive coverage and analysis of this unfolding narrative in Nigeria’s energy sector.