Otedola’s brothers acquire 7.7mn shares worth N1.7bn in Geregu Power

Two brothers of Femi Otedola, the majority owner of Geregu Power, have acquired up to 7.7 million shares in the company that produces electricity.

According to regulatory filing details posted on the Nigerian Exchange website on Friday, Paul Olurotimi Otedola bought 3.6 million shares at N219 per unit and 100,000 shares at N207.9 per unit on February 2 and 7 in deals worth N809.2 million.

Also, Ayokunle Michael Otedola bought 4 million shares at N219 per unit for N876 million on February 2, bringing the combined purchases by the duo to N1.7 billion.

Mr Otedola already holds 95.6 percent of the organization, almost entirely through his own power distribution company Amperion.

There are no details of the parties selling the transaction in the document, meaning the Otedolas family’s stake in Geregu Power would have been closer to 96 percent if the 7.7 million shares had been bought from someone other than the billionaire businessman.

The acquisition of the shares puts the two brothers in a good position to become directors on the board of the company, which is currently chaired by Mr. Otedola, as the other two directors on the board each hold 1,245 shares and only the chairman holds a large share in the company.

Also read: Geregu Power reports 51% drop in annual profit, proposes N20 billion dividend

“It is very possible that he (Mr Otedola) wants to have other people on board who can also share his interests,” said Timchang Gwatau, former head of research at investment bank Meristem Securities, who now works for GCR Ratings.

“You may also have someone, perhaps from his family, in an important position on the council so that even if he is not on the board, his interests will be protected,” he said.

Geregu Power posted a 50.5 percent increase in annual revenue to N10.2 billion for 2022, according to its audited financial statements published last week.