The African Export-Import Bank’s (Afreximbank) Fund for Export Development in Africa (FEDA) has finalized the acquisition of a 5% share in Nigerian power generation business Geregu Power Plc.
On Tuesday, February 21, an off-market transaction involving 125.01 million Geregu Power Plc shares valued at N12.5 billion was completed.
FEDA purchased a minority share in Geregu Power as part of its efforts to boost Africa’s energy security and industrialization.
FEDA stated it made the strategic choice 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 announced that it plans to assist the company as a minority investor and to work with the current owners and management team to accelerate the company’s growth in the coming years.
Geregu and Afrexim announced in December that they had reached a deal for Afreximbank to purchase 5% of Geregu’s NGX shares.
Geregu Power shares have climbed by more than 100% since its initial public offering in October, and are now trading at approximately N224 per share.