The Fund for Export Development in Africa (FEDA), an investment platform of the African Export-Import Bank (Afreximbank), has completed the acquisition of a 5% stake in Nigerian power generation company Geregu Power Plc.
On Tuesday, Feb. 21, an off-market trade of 125.01 million Geregu Power Plc shares worth N12.5 billion was completed.
As part of its efforts to improve Africa’s energy security and industrialization, FEDA acquired a minority stake in Geregu Power.
As part of its intervention efforts in Africa’s energy sector, FEDA said it made the strategic decision to support leading energy platforms across Africa, including the renewable and transition fuels sectors.
FEDA stated that it intends to support the company as a minority investor and to collaborate with the current owners and management team to drive the company’s growth over the next few years.
Geregu and Afrexim announced in December that they had finalized an agreement for Afreximbank to buy 5% of Geregu shares on the NGX.
Geregu Power shares have increased by more than 100% since they were listed last October, and are currently trading at around N224 per share.