FEDA buys Geregu shares
Dear readers, a short one here!
The African Export-Import Bank (Afreximbank), through its impact development arm, Fund for Export Development in Africa (FEDA), recently acquired a 5% stake in Geregu Power plc. The purchase comes two months after the initial announcement of intent two months ago. The deal involved an over-the-counter trade of 125 billion shares to FEDA. The announcement led to a 10 per cent gain in Geregu’s share price driven by positive market sentiments. FEDA is a fund set up by Afreximbank to support value-added export development and industrialization across Africa.
So what?
The investment by FEDA in Geregu supports one of the critical factors that led to its listing, increased visibility among investors. The investment by FEDA will be seen as a show of confidence in the company’s operations and management. It also shows that Afreximbank believes that despite the issues faced by the electricity generation sector. The company is on its part to become a major power provider in Nigeria and West Africa.