Billionaire businessman and Chairman of First HoldCo Plc, Femi Otedola, has disclosed plans to invest $100 million in the proposed private placement of Dangote Petroleum Refinery.
Otedola made the announcement on Wednesday during a tour of the refinery in Lagos alongside the management team of First HoldCo.
Speaking with journalists after the visit, the business mogul revealed that his planned investment formed part of the reason behind the sale of his stake in Geregu Power Plc.
“On a personal note, I have approved him. I’ve been here with him 25 times, so my compensation is that he’s going to allocate to me shares valued at $100 million in the private placement,” Otedola said while referring to Aliko Dangote, owner of the refinery.
“That was one of the reasons I sold my shares in Geregu Power Plants — to invest in the IPO of Dangote Refinery,” he added.
Dangote Petroleum Refinery, regarded as Africa’s largest oil refinery, is currently seeking to raise about $2 billion through a private placement targeted at institutional investors and high-net-worth individuals.
The company is also reportedly planning a separate initial public offering expected to raise around $5 billion, representing about 10 per cent of the refinery’s estimated valuation.
According to reports, the refinery is targeting a valuation of approximately $50 billion ahead of the planned share sales.
Otedola explained that part of the proceeds realised from the sale of his stake in Geregu Power would be channelled into the refinery investment.
The billionaire businessman sold his interest in the power company in December through a transaction reportedly valued at about $750 million.
The Dangote Refinery is also said to be considering cross-border listings across multiple stock exchanges to attract investors from different international markets.
The development further highlights growing investor confidence in the refinery, which has continued to attract global attention since the commencement of operations.
