Billionaire businessman Femi Otedola has explained why he sold his stake in Geregu Power to free up funds for investment in the planned initial public offering (IPO) of Dangote Refinery.
Mr Otedola disclosed this during a visit to the refinery in Ibeju-Lekki, Lagos, with board members and executives of First HoldCo on Wednesday.
According to him, he plans to invest $100 million in the refinery ahead of its public listing.
“On a personal note, I’ve appealed to him; I’ve been here with him 25 times. So, my compensation is that he’s going to allocate to me shares worth $100 million in the private placement. That’s one of the reasons I sold my stake in Geregu Plant to come and invest my proceeds in the IPO of Dangote Refinery,” he said.
Otedola also praised Aliko Dangote for his industrial projects across Africa, noting that he had travelled with him to several countries during the commissioning of cement plants.
The planned investment is expected to form part of the refinery’s proposed $2 billion private fundraising round before the IPO.
Dangote said preparations were ongoing for the refinery to be listed on the stock market by September.
“Well, you heard the chairman of the bank, in his personal capacity; he has pledged to buy $100 million worth of shares in the IPO,” Dangote said
.
He added that investor requests had already reached billions of dollars before the public offer officially opens.
Otedola also said First HoldCo aims to become one of the leading banking groups in sub-Saharan Africa within five years.
Managing director and chief executive officer of First Bank Group Olusegun Alebiosu said the refinery project should encourage more industrial investments across Africa.
Earlier this year, Femi Otedola said the naira could strengthen below N1,000 to the dollar if the refinery reaches full operating capacity and reduces dependence on fuel imports.
