Investors Acquire Geregu Power Shares Valued at ₦14 Billion in Recent Deals

In a series of cross-deals involving Amperion Power Distribution Company Limited, the majority shareholder of Geregu Power Plc, approximately 40 million units of the power company’s shares, worth about ₦14.57 billion, changed hands during three trading sessions this December.

According to insider trading notices filed with the Nigerian Exchange Limited on Thursday, the transactions occurred on December 21, 22, and December 27 in Lagos.

One transaction involved the exchange of five million shares at ₦360.30 per unit on December 21. The subsequent deal on December 22 involved 18.22 million units traded at N360.20 per unit. The final transaction on Wednesday saw 16.77 million units of Geregu shares traded at ₦370 per unit.

An analysis of Geregu’s recent trading prices on the local bourse revealed a pricing trend around ₦399 over the last seven days. This suggests that the 40 million units involved in the cross-deals were exchanged at a price lower than the prevailing trading price. Currently, the equity boasts a market capitalization of ₦997.500 billion, hinting at a potential ascent to a ₦1 trillion valuation in the coming weeks.

At the close of the first post-Christmas trading session, Geregu led in terms of traded value at ₦6.06 billion.

These recent cross-deals follow Amperion Power Distribution Company Limited’s earlier move to offload one million units of its holdings in a cross-deal stock sale, exchanging shares at ₦399 per unit, totaling about ₦399 million.

On October 31, a transaction involving 4.8 million units of the power generation company occurred at ₦395 per unit. The majority shareholder, Amperion Power Distribution Company Limited, was involved, and the identities of the other parties in these cross-deals remain undisclosed.

In its Q1 2024 projections, Geregu Power Plc anticipates declaring a profit of N5.56 billion, with operating cash flow settling at ₦590 million. The company expects operating cash flow before working capital changes to reach ₦9.79 billion in Q1-2024.

Amperion Power, a subsidiary of Forte Oil owned by billionaire businessman Femi Otedola, acquired Geregu in 2013. Geregu Power Plc made history by becoming the first power company to be listed on the NGX in 2022.