Afreximbank’s FREDA completes acquisition of 5% ownership of Geregu Power PLC.
The African Export-Import Bank’s (Afreximbank) investment platform, the Fund for Export Development in Africa (FEDA), has completed the acquisition of 5% ownership of Nigerian-based power generation company Geregu Power Plc.
A total of 125.01 million units of Geregu Power Plc shares valued at N12.5 billion were consummated in an off-market trade on Tuesday, Feb. 21.
FEDA acquired a minority stake in Geregu Power as part of efforts to enhance energy security and industrialization in Africa.
FEDA said it made the strategic decision to support leading energy platforms across Africa, including the renewable and transition fuels sectors as part of its intervention efforts in Africa’s energy sector.
FEDA noted that it targets to support the business as a minority investor and work with the current owners and management team to drive the expansion of business over the next years.
Geregu and Afrexim announced in December that they had finalized an agreement for strategic purchase of 5% of Geregu shares by Afreximbank on the NGX.
Since it was listed last October, Geregu Power shares has rallied by over 100% and is currently trading at about N224 per share.
