Afreximbank obtains internal approval to acquire stake in Geregu Power
The Fund for African Export Development (FEDA), a unit of the African Export-Import Bank (Afreximbank), says it has received approval from its internal approval authority to acquire a minority stake in Geregu Power Plc.
Geregu Power, controlled by business tycoon Femi Otedola, is a 435 megawatt thermal power station located in Ajaokuta, Kogi State, and is listed on the Nigerian Stock Exchange.
FEDA, based in Kigali, is Afreximbank's development impact investment platform with a mandate to provide capital to advance intra-African trade, export development and industrialization in Africa .
The approval was disclosed in a Friday statement on the Afreximbank website.
"As part of its efforts to intervene in the energy sector in Africa, FEDA has made a strategic decision to support the main energy platforms across Africa, including the renewable energy and energy sectors. transition fuels," the statement read.
"Geregu Power, one of Nigeria's leading power generation companies with a capacity of over 430 megawatts, is a highly strategic asset in realizing the roadmap of Nigeria's power sector."
He said FEDA aims to support the company as a minority investor and to work with the current owners and management team to drive the company's expansion over the next few years.
According to the statement, Chairman of the Board of Geregu, Femi Otedola, said: "As a pioneer power generation company on the Nigerian Exchange Limited (NGX), the interest shown by FEDA is an expression of his firm belief not only in the business but also in the future of the Nigerian Electricity Supply Industry (NESI).”
“At a time of shrinking economic activity globally, attracting this investment from FEDA demonstrates our long-term strategic plans and will accelerate our expansion into the wider West African market,” said- he said.
ALSO READ: Otedola's Geregu Power begins share acquisition talks with Afreximbank
The statement also quotes Chairman and Chairman of Afreximbank and Chairman of FEDA Platform Entities, Benedict Oramah, saying:
“We are very pleased with this investment proposal, which marks a crucial step towards supporting the Nigerian power sector and, more broadly, towards advancing the industrialization and energy security of the country. Africa. Without adequate energy, Africa cannot achieve global export competitiveness.
“Afreximbank and its subsidiaries, including FEDA, are focused on creating a level playing field so that African products can compete on a level playing field with those from other markets. We hope this approved investment will bring us closer to that goal."
Additionally, FEDA CEO Marlène Ngoyi said the proposed investment in Geregu Power demonstrates FEDA's ability to step into opportunities and sectors that are critical to driving the structural transformation of trade on the continent. . Geregu Power is a key player in the power sector in Nigeria.
“FEDA is excited to partner with the company in its next phase of growth,” she said.
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The Fund for African Export Development (FEDA), a unit of the African Export-Import Bank (Afreximbank), says it has received approval from its internal approval authority to acquire a minority stake in Geregu Power Plc.
Geregu Power, controlled by business tycoon Femi Otedola, is a 435 megawatt thermal power station located in Ajaokuta, Kogi State, and is listed on the Nigerian Stock Exchange.
FEDA, based in Kigali, is Afreximbank's development impact investment platform with a mandate to provide capital to advance intra-African trade, export development and industrialization in Africa .
The approval was disclosed in a Friday statement on the Afreximbank website.
"As part of its efforts to intervene in the energy sector in Africa, FEDA has made a strategic decision to support the main energy platforms across Africa, including the renewable energy and energy sectors. transition fuels," the statement read.
"Geregu Power, one of Nigeria's leading power generation companies with a capacity of over 430 megawatts, is a highly strategic asset in realizing the roadmap of Nigeria's power sector."
He said FEDA aims to support the company as a minority investor and to work with the current owners and management team to drive the company's expansion over the next few years.
According to the statement, Chairman of the Board of Geregu, Femi Otedola, said: "As a pioneer power generation company on the Nigerian Exchange Limited (NGX), the interest shown by FEDA is an expression of his firm belief not only in the business but also in the future of the Nigerian Electricity Supply Industry (NESI).”
“At a time of shrinking economic activity globally, attracting this investment from FEDA demonstrates our long-term strategic plans and will accelerate our expansion into the wider West African market,” said- he said.
ALSO READ: Otedola's Geregu Power begins share acquisition talks with Afreximbank
The statement also quotes Chairman and Chairman of Afreximbank and Chairman of FEDA Platform Entities, Benedict Oramah, saying:
“We are very pleased with this investment proposal, which marks a crucial step towards supporting the Nigerian power sector and, more broadly, towards advancing the industrialization and energy security of the country. Africa. Without adequate energy, Africa cannot achieve global export competitiveness.
“Afreximbank and its subsidiaries, including FEDA, are focused on creating a level playing field so that African products can compete on a level playing field with those from other markets. We hope this approved investment will bring us closer to that goal."
Additionally, FEDA CEO Marlène Ngoyi said the proposed investment in Geregu Power demonstrates FEDA's ability to step into opportunities and sectors that are critical to driving the structural transformation of trade on the continent. . Geregu Power is a key player in the power sector in Nigeria.
“FEDA is excited to partner with the company in its next phase of growth,” she said.
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