Naija247news reports that Rotimi Otedola, the younger brother of billionaire businessman Femi Otedola, has sold shares worth N4.6 billion in Geregu Power Plc, Nigeria’s leading power generation company. The transaction, which took place on the Nigerian Exchange (NGX), has sparked significant interest among investors and market analysts, raising questions about the timing and implications of the sale.
Thank you for reading this post, don't forget to subscribe!According to Naija247news, the shares were sold at an average price of N399 per unit, making it one of the largest single transactions on the NGX in recent weeks. Geregu Power, which is majority-owned by Femi Otedola, has been a standout performer in the power sector, with its shares gaining over 200% since its listing in October 2022. Rotimi’s decision to offload a portion of his holdings has drawn attention to the company’s valuation and future prospects.
Naija247news gathered that the sale was executed through a cross-deal, a transaction where shares are transferred between two parties without affecting the market price. Market sources suggest that the move could be part of a strategic portfolio rebalancing by Rotimi, who has maintained a low profile compared to his high-profile brother. “This transaction reflects Rotimi’s confidence in the liquidity of Geregu’s shares and the overall strength of the Nigerian capital market,” a financial analyst told Naija247news.
Naija247news understands that Geregu Power has been a key player in Nigeria’s efforts to stabilize its power sector, contributing significantly to the national grid. The company’s strong financial performance and growth potential have made it a favorite among institutional and retail investors. However, Rotimi’s sale has raised speculation about whether other major shareholders might follow suit, potentially impacting the stock’s momentum.
According to Naija247news, Femi Otedola, who is the chairman of Geregu Power, has not commented on the transaction. However, industry insiders believe the Otedola family remains committed to the company’s long-term vision. “This sale does not indicate a lack of confidence in Geregu. It could simply be a personal financial decision by Rotimi,” a source close to the family revealed.
Naija247news reports that the transaction has further highlighted the growing activity in Nigeria’s power sector, which has attracted significant investment in recent years. As Geregu Power continues to expand its operations, market watchers will be keen to see how this development influences investor sentiment and the company’s share price in the coming weeks.
With Rotimi Otedola’s N4.6 billion share sale making headlines, Naija247news gathered that the move underscores the dynamic nature of Nigeria’s capital market and the strategic decisions being made by key players in the economy.
