BY Busola Aro
The Fund for Export Development in Africa (FEDA) has acquired a 5 percent stake in Geregu Power Plc, an electricity-generating firm.
FEDA is the impact development unit of the Africa Export and Import Bank (Afreximbank).
Details of the acquisition were contained in a statement issued by Akinleye Olagbende, Geregu’s secretary, to the Nigerian Exchange Limited (NGX) on Wednesday.
In October 2022, Geregu Power Plc became the first electricity generation company (GenCo) to be listed on the main board of the NGX.
“The purchase of the shares was concluded today the 21st of February 2023 with the purchase agreed in on the 21st of December 2022,” the statement reads.
Last year, FEDA announced that it received internal approvals to acquire a strategic minority stake in Geregu Power Plc, subject to satisfactory diligence and documentation.
The bank said as part of its intervention efforts in Africa’s energy sector, it made a strategic decision to support leading energy platforms across Africa, including the renewable and transition fuels sectors.
Afreximbank added that it aims to support Geregu Power as a minority investor and work with the current owners and management team to drive the expansion of the business over the next few years.
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