In three cross-deals involving Amperion Power Distribution Company Limited, the majority shareholder of Geregu Power Plc, 40 million units of the power company’s shares valued at about N14.57bn were traded in three trading sessions this December.
According to notices on insider trading filed with the Nigerian Exchange Limited on Thursday, it was revealed that the transactions took place on December 21, 22, and December 27 in Lagos.
One of the transactions involved five million shares, which were traded at N360.30 per unit. This deal took place on December 21. The next deal took place on December 22 and involved 18.22 million units at N360.20 per unit. The last transaction was on Wednesday. It involved the exchange of 16.77 million units of Geregu shares at N370 per unit.
A look at the price at which Geregu equity had traded on the local bourse in the last seven days showed it was priced at N399, which indicated that the 40 million units involved in the cross-deals were exchanged at a lower price than the trading price. The equity currently has a market capitalisation worth N997.500bn, indicating it will likely hit N1tn valuation in the coming weeks.
At the close of the first post-Christmas trading session, Geregu led in terms of traded value at N6.06bn.
These latest cross-deals come a few weeks after Amperion Power Distribution Company Limited, offloaded one million units of its holdings in a cross-deal stock sale. The shares were exchanged at N399 per unit, bringing the deal to about N399m.
On October 31, 4.8 million units of the power generation company were traded at N395 per unit in a deal involving the majority shareholder, Amperion Power Distribution Company Limited. The other parties to these cross-deals have yet to be revealed.
In its projections for the first quarter of 2024, Geregu Power Plc said that it expects to declare N5.56bn as profit while its flow from operations is expected to settle at N590m in the period. The company said it expects operating cash flow before working capital changes to settle at N9.79bn in Q1-2024.
Amperion Power, a subsidiary of Forte Oil, owned by billionaire businessman Femi Otedola, acquired Geregu in 2013. It was listed on the NGX in 2022, making history as the first power company to do so.
