Nigerian business tycoon and billionaire, Mr Femi Otedola has completed the transfer and divestment from Forte Oil to focus on power.
Naija News recalls that the son to the late Governor of Lagos state confirmed the sale of his 75 per cent stake in Forte Oil on Wednesday.
In a series of tweets on his Twitter page on Saturday, Otedola said his business focus will now be on Geregu power plant.
In line with my principle of business focus, we have divested from our marketing and upstream businesses and shall from now on focus and consolidate on the gains of our power generation business, Geregu Power Plc.
— Femi Ote$ (@realFemiOtedola) June 22, 2019
It is estimated he will invest $1 billion in the power plant.
Amperion Power Distribution Company Limited, a subsidiary of Forte Oil Plc acquired the Geregu power plant in 2013 and invested $94 million in the power plant.
After another $350 million investment in the plant in 2018, Otedola said the acquisition was a sign of his commitment to the federal government’s power sector recovery plan.
Geregu Power Plc was incorporated in November 2006 as one of the unbundled companies from the now-defunct Power Holding Company of Nigeria (PHCN).
The gas power plant began operations in 2007 with a total installed capacity of 414MW at commissioning.
In December, Otedola had first announced that he would divest his 75% stake in Forte Oil Plc.
The divestment was completed on Wednesday; selling his majority shareholding to Prudent Energy, a local oil trading firm.
Forte Oil, was originally British Petroleum. The federal government took over the oil company during the fight to free South Africa from White minority rule and renamed it African Petroleum Plc.
African Petroleum was privatised to Sodiq Oil before Otedola acquired the company and rebranded it as Forte Oil.