Femi Otedola, the Chairman of Geregu Power Plc, has reportedly sold 2.8 million units of his shares in the company, representing his majority stake.
The sale was carried out in two transactions executed on different dates, with 1.9 million shares sold at N288.9 each on May 8th and 948,092 shares sold at N290.7 per unit on May 9th. This amounted to a total of N817.3 million, Premium Times reported.
Meanwhile, Paul Olurotimi Otedola, the brother of the energy tycoon, acquired 300,000 units of the company’s shares at N288.9 per unit on May 8th, increasing his interest in the company to a total of 4 million shares. He had earlier acquired 3.7 million shares earlier this year at N809.2 million.
The news of Femi Otedola’s sale of 2.8 million shares has raised concerns among investors and analysts, who are now questioning the implications of his decision on the future of Geregu Power Plc. Some have speculated that Otedola may be divesting his holdings in order to invest in other opportunities, while others have expressed concern about the impact of his decision on the company’s stock price.
The sale of the shares comes just a few weeks after Otedola divested his 6.3% substantial stake in Transnational Corporation Plc, a conglomerate with interests in power generation, to Tony Elumelu after off-market share purchases. The reasons behind Otedola’s divestment from both companies are yet to be fully understood, but it is clear that his decision will have significant implications for the Nigerian business community.
Investors and analysts will be watching closely to see how the market reacts to Otedola’s decision and whether it will impact the future of Geregu Power Plc. With Otedola’s reputation as a savvy businessman, his moves are always closely monitored by market participants, and any changes in his holdings are likely to significantly impact the Nigerian business landscape.
Culled from business insiders