Business & Economy - Companies - December 4, 2022

AFREXIMBANK opens talks with Geregu Power to acquire its shares

MEDIATRACNET

The AFREXIMBANK has opened talks with Geregu Power Plc on prospects for the acquisition of the power company’s equity shareholding.

The management of Geregu Power, Nigeria’s newest listed company, said Friday discussions commenced with Fund for Export Development in Africa, an affiliate of AFREXIMBANK.

Geregu power is one of Nigeria’s electricity generating plants with capacity currently at about 435 megawatts (MW).

The company said in a regulatory notification to the Nigerian Stock Exchange that negotiations were progressing to an advanced stage to see the possibility of an agreement on the sell of part of its shares to the bank.

Currently, Geregu Power’s share price has dropped by about 5.7 percent to N122.8 in Lagos on the day of the announcement.

Two months ago, the power firm owned by a Lagos businessman, Femi Oledola, debuted on the floor of the Nigerian Exchange with a listing of about 2.5 billion shares with cumulative market value of N250 billion at listing.

The listing by the company was the first time an electricity company would have a separate listing on the capital market.

Geregu Power came close to reporting a 50 percent jump in net profit for the 2022 financial year after revenue climbed to N71 billion.

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