Geregu Power Shares Worth N14.57bn Exchanged in Three Cross-Deals by Amperion Power

Amperion Power Distribution Company Limited, the principal shareholder of Geregu Power Plc, orchestrated three substantial cross-deals this December, involving 40 million units of the power company’s shares with an estimated value of N14.57 billion.

These transactions unfolded over the trading sessions on December 21, 22, and December 27 in Lagos.

The intricacies of these strategic dealings were disclosed through insider trading reports filed with the Nigerian Exchange Limited on Thursday.

The first of the transactions, transacted on December 21, involved five million shares with each unit exchanging hands at N360.30.

The second deal was performed on December 22 as 18.22 million shares were exchanged at N360.20 per unit.

The final transaction occurred on December 27, involving the exchange of 16.77 million units at a unit price of N370.

Interestingly, a comparative analysis of the transaction prices against Geregu Power’s recent trading history reveals that the 40 million units were traded at a rate lower than the prevailing market price, which currently stands at N399.

This strategic move could potentially influence the equity’s market capitalization, pushing it closer to the coveted N1 trillion valuation.

In the aftermath of the first post-Christmas trading session, Geregu Power emerged as the leader in terms of traded value at N6.06 billion.

This flurry of cross-deals follows closely on the heels of a previous transaction where Amperion Power Distribution Company Limited offloaded one million units of Geregu Power shares, raking in about N399 million at a unit price of N399.

These moves come against the backdrop of Geregu Power Plc’s optimistic projections for the first quarter of 2024.

The company anticipates declaring a profit of N5.56 billion, with an expected operating cash flow of N9.79 billion before working capital changes.

Geregu Power Plc, a historic entrant onto the NGX in 2022, remains under the ownership of Amperion Power, a subsidiary of Forte Oil, a conglomerate owned by billionaire businessman Femi Otedola.

The recent cross-deals underscore the strategic financial maneuvers within the power sector as major players position themselves for the evolving landscape of Nigeria’s energy industry.