Two brothers of Femi Otedola, the majority owner of Geregu Power, have acquired 7.7 million shares in the power company.
According to regulatory filings posted on the Nigerian Exchange’s website on Thursday, Paul Olurotimi Otedola purchased 3.6 million shares at N219 per unit and 100,000 shares at N207.9 per unit in transactions totaling N809.2 million on February 2 and 7.
Similarly, on February 2, Ayokunle Michael Otedola purchased 4 million shares at N219 per unit for N876 million, bringing the duo’s total purchases to N1.7 billion.
Mr. Otedola already owns 95.6% of the company, almost entirely through his own power distribution company, Amperion.
The documents contain no information about the transaction’s selling party, implying that the Otedolas’ family stake in Geregu Power would be closer to 96% if the 7.7 million shares were purchased from someone other than the billionaire businessman.
The share purchase puts the two brothers in a good position to become directors on the company’s board, which is currently chaired by Mr Otedola, because two other directors on the board each hold 1,245 shares and only the chairman has a significant stake in the company.
“It is very possible that he (Mr Otedola) wants to have other people on the board who could share his interest too,” said Timchang Gwatau, former head of research at the investment bank Meristem Securities, who now works for GCR Ratings.
“It is also possible he has someone, maybe from his family, to have a significant position on the board so that even when he is not on the board, his interest will be protected,” he added.
Geregu Power posted a 50.5 per cent drop in annual profit to N10.2 billion for 2022, according to its audited financial report published last week.