The Fund for Export Development in Africa (FEDA), the impact development unit of the Africa Export and Import Bank (Afreximbank), has completed the acquisition of a 5% stake in Geregu Power Plc, an electricity-generating firm.
This is contained in a notice to the Nigerian Exchange Limited (NGX) yesterday by Geregu’s Secretary, Akinleye Olagbende.
The notice reads: “The purchase of the shares was concluded today the 21st of February 2023 with the purchase agreed on, on the 21st of December 2022.”
Although the value of the deal was not stated, an off-market trade of 125.01 million Geregu Power Plc shares worth N12.5 billion was completed on Tuesday.
Recall that last year, FEDA announced that it received internal approvals to acquire a strategic minority stake in Geregu Power Plc, subject to satisfactory diligence and documentation.
Afreximbank said as part of its intervention efforts in Africa’s energy sector, it made a strategic decision to support leading energy platforms across Africa, including the renewable and transition fuels sectors.
Afreximbank added that it aims to support Geregu Power as a minority investor and work with the current owners and management team to drive the expansion of the business over the next few years.
On its part, the GenCo had also notified the NGX and the investing public of its discussions with the FEDA for the acquisition of a portion of Geregu Power Plc shares.
Geregu Power became the first electricity generation company (GenCo) to be listed on the main board of the NGX on October 5, 2022. It quoted a total of 2.5 billion units of its shares at N100 per unit by way of introduction, thereby increasing the market capitalisation of the Exchange by N250 billion.
The purchase of the shares was concluded today the 21st of February 2023 with the purchase agreed on, on the 21st of December 2022.
