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Afreximbank, Geregu acquisition talks set for advanced stage, as FEDA gets minority stake approval

  • Business

Negotiation between Femi Otedola’s company, Geregu Power, and Fund for Export Development in Africa (FEDA) is set to hit advanced stage as the latter received internal approval to acquire minority stake.

Ripples Nigeria had previously reported that both Geregu and FEDA were discussing share acquisition, but it was neither stated if the stake would be minority or substantial

According to a statement dated December 23, 2022, and obtained by Ripples Nigeria on Wednesday, FEDA, which is a development impact investment platform of the African Export-Import Bank (Afreximbank), disclosed that the stake would be minority.

Commenting on the yet-to-be-concluded deal, the CEO of FEDA, Marlène Ngoyi, commented, “The proposed investment in Geregu Power demonstrates FEDA’s ability to intervene in opportunities and sectors that are critical towards driving the structural transformation of trade on the continent.

Read also:Otedola, other Geregu shareholders lose N48.7bn amid talks with Afreximbank

“Geregu Power is a key player in Nigeria’s power sector. FEDA is pleased to partner with the Company in its next phase of growth.”

Also speaking on the deal, the Chairman, Board of Directors, Geregu Power, Femi Otedola, stated that, “as the pioneer Power Generation Company on the Nigerian Exchange Limited (NGX), the interest shown by FEDA, is an expression of its firm belief not only in the Company but also in the future of the Nigerian Electricity Supply Industry (NESI).”

He added, “in a period of contracting economic activity globally, to attract this investment from FEDA is testament to our long-term strategic plans and will accelerate our expansion to the wider West African Market.”