Femi-Otedola
By Olamilekan Abayomi
Femi Otedola, a Nigerian billionaire, has sold 77% of his stake in Geregu Power Plc, a power generation company, for $750 million. The deal was executed through the sale of Otedola’s 95% stake in Amperion Power Distribution Company Limited to MA’AM Energy Ltd, a Nigerian integrated energy company.
The transaction marks a significant shift in Otedola’s investment portfolio, as he focuses on expanding his presence in the financial sector. He is currently the chairman of First HoldCo, the parent company of First Bank of Nigeria, and holds a 17.1% stake in the bank.
Geregu Power, which was listed on the Nigerian Exchange in 2022, has seen significant growth under Otedola’s leadership. The company’s installed capacity has expanded from 40MW to 435MW, contributing around 10% to Nigeria’s national grid supply.
The sale of Otedola’s stake in Geregu Power is expected to have a positive impact on the company’s operations, as MA’AM Energy Ltd brings in new expertise and resources. The deal was financed by a consortium of Nigerian banks led by Zenith Bank, with Blackbirch Capital serving as financial advisers
Otedola’s exit from Geregu Power is part of his broader strategy to rebalance his investment portfolio and focus on high-growth sectors. His decision to sell his stake in Geregu Power has been seen as a savvy move, given the company’s strong financial performance and growth prospects.
The transaction is also expected to boost investor confidence in Nigeria’s power sector, demonstrating the potential for attractive returns on investment. As Otedola moves forward, it will be interesting to see how he leverages his experience and resources to drive growth in the financial sector.
