Otedola says Geregu Power committed to maximising shareholders wealth

Femi Otedola, chairman, Board of Directors, Geregu Power Plc on Tuesday restated the commitment of the company towards delivering improved performance.

The billionaire businessman also noted that the power company is taking necessary steps to expand its capacity in order to maximise shareholders’ wealth.

Otedola stated this while speaking at the “Closing Gong ceremony” and commemoration of first Annual General Meeting (AGM) on the floor of the Nigerian Exchange Limited (NGX) in Lagos.

He called on the incoming administration to do all it could to tackle power sector challenges. He noted that even though the power sector has its challenges, the incoming government could set its priority on tackling the challenges in the sector.

According to him, the power sector is faced with a lot of problems, noting, however, that the problems are surmountable. Otedola explained that the major problem is transmission, saying that if power is well organised it is even cheaper and would have a lot of positive impact on the manufacturing sector and the entire economy as a whole.

“I believe we are now in the stage that the power sector will get a lot of attention. We have new plants. Our problem is transmission, there is need to look in this direction. We are in a stage where the new government can come and tackle the challenges in the power sector and hopefully there will be positive results. So, what is needed is to seek investors who have knowledge of the private sector to work on these challenges. We had come to the exchange to list for the very first time. The first power company to embark on an aggressive 300 per cent expansion drive; the first company to release its financial result and so I am happy to be here,” he said.

Whilst expressing delight at the company’s first year anniversary as a listed company, he emphasised that for any company to sustain wealth, there is a need to list on the stock exchange.

Also speaking, Akin Akinfemiwa, Chief Executive Officer, Geregu Power Plc acknowledged NGX and stockbrokers for their support of listing the company and trading the company’s stocks on the bourse.

He said: “We have come today to state our unflinching commitment towards upholding the values and ethos of the exchange. We are doing everything within our means to expand our capacity towards maximizing shareholders’ value,” Akinfemiwa said.

On his part, Umaru Kwairanga, Chairman, NGX, commended Geregu Power Plc for showing good example in adhering to the post-listing requirements. He urged more power companies, among others to come on board and get listed so that they can also benefit from the capital market.

According to him, the stock market has compensated Geregu Power with price appreciation and it has shown that the market is information driven.

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Also speaking, Temi Popoola, Chief Executive Officer, NGX described Otedola as a firm believer in the capital market, noting that the exchange was aware of Geregu Power Plc’s strategic ambitions to ensure more value for all stakeholders.

“We are aware of your strategic ambitions and we assure you that the NGX can help you to raise capital. We have seen benefits of that with the public announcement of FEDA that took a five per cent on the floor of the market through those shares. So we hope that you will be using the market now and in any other strategic vehicles and companies that you may have,” Popoola said.

Geregu Power Plc rewarded shareholders with a dividend of N8 per share year ended December 31, 2022. The shareholders on Tuesday approved the dividend at the AGM held in Lagos.