Otedola sells shares in Geregu after Transcorp rejects his N250bn

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The majority shareholder of Geregu Power, Femi Otedola, has sold part of his shares in the power firm, weeks after exiting Transnational Corporation (Transcorp) Plc.

Otedola sold a total of 2.82 million shares from the 2.38 billion stock he held directly and through his investment firm, Amperion Power Distribution Limited (indirectly), in Geregu Power.

Ripples Nigeria understands that the sale of 2.82 million shares meant Otedola took N820.67 million out of his N694.45 billion investment in Geregu.

The investor, who also doubles as the Chairman of Geregu, sold the shares in two days; offloading 1.87 million shares on May 8 and 948,092 on May 9.

Ripples Nigeria obtained this information from a corporate document filed with the capital market authority, Nigerian Exchange Limited (NGX), on Wednesday.

READ ALSO:Otedola reveals why he moved to control Transcorp, claims Elumelu betrayed him in business deals

The shares Otedola sold represent a 0.11 per cent stake in Geregu. This has reduced Otedola’s controlling stake in the company slightly from 95.55 per cent to 95.44 per cent.

What you need to know

Otedola’s decision to sell part of his Geregu stake followed his move to acquire Transcorp Plc at the worth of N250 billion, but his offer was rejected.

He had also bought a 6 per cent stake in Transcorp plc. However, he later sold it to Tony Elumelu, the majority investor in Transcorp, after they both battled for control of the diversified investment company.

Otedola has made known his intention to acquire Transcorp, however, it is not known if the sale of Geregu shares was to enable him to have enough capital to fund the acquisition.

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