Billionaire businessman Femi Otedola has completed a major strategic divestment, selling his controlling stake in Geregu Power Plc for a colossal N1.088 trillion. The transaction, financed by a banking consortium led by Zenith Bank Plc, was confirmed by the Nigerian Exchange (NGX) on Monday.
Otedola’s investment vehicle, Amperion Power Distribution Company Ltd, previously held nearly 80 percent of the power-generating company. With the sale, the businessman is set to intensify his focus on the financial services sector, where he already holds a dominant position. Otedola remains the single largest shareholder in First Bank of Nigeria Plc, with a 17.01 percent stake, a position he solidified as the bank's share price soared from N5 to N54.
While exiting his majority position, Otedola retains a smaller shareholding in Geregu. This move marks a significant pivot in his investment portfolio, which began with energy. He first rose to prominence by founding Zenon Oil in 2003, which at its peak controlled 93 percent of Nigeria's diesel market. He later acquired African Petroleum, rebranding it to Forte Oil before exiting in 2019 to venture into power generation with Geregu, which he successfully grew from 80MW to 435MW.
This landmark deal underscores Otedola's evolving investment strategy, as he consolidates his influence in Nigeria's banking industry while executing one of the largest corporate transactions on the Nigerian stock exchange.
0 Comments