Geregu seeks shareholder’s approval to boost corporate governance
Chigozie Amadi
Geregu Power is seeking shareholders’ approval to amend its Memorandum and Articles of Association to boost corporate governance and investor confidence.
This was revealed in its notice of the Annual General Meeting filed with the Nigerian Exchange Limited on Thursday.
The power generating company said that it would be seeking approval to amend its Memorandum and Articles of Association to read: “Article 21- ‘Fully paid shares shall be free from any restriction on the right of transfer and shall also be free from all lien, except as otherwise prescribed by the operation of law’.
“Article 72- ‘‘Unless and otherwise directed by a resolution of the general meeting of the company, the number of directors of the Company shall not be less than 6 or more than 13’ Article 91- ‘The borrowing powers of directors are limited so that the aggregate amount at any time owing in respect of moneys borrowed by the company and its subsidiary companies (exclusive of inter- company borrowings) shall not exceed a reasonable amount except with the consent of the company in general meeting.”
During the meeting, shareholders are expected to approve the report of the directors, statement of financial position with the statement of profit or loss and other comprehensive income for the year ended December 2023, declare a dividend, ratify the appointment of Olukunle Oyewole and re-elect some directors.
Geregu Power Plc surpassed the N1tn market capitalisation mark in January and until early March was the only energy company listed on the exchange, when Transcorp Power Plc was listed.
Geregu share was priced at N1,000 and its market cap stood at N2.5tn at the close of business on Thursday.
Geregu Power grew revenue by 74.11 per cent to N82.91bn in 2023, from N47.62bn in the prior year.
That was the highest revenue it had earned in the last five years.
Its annual report revealed that the next major gas turbine overhaul of the firm was estimated to cost N31.62bn and 50 per cent of the estimated costs are expected to be financed from the cash generated from the operations while the balance would be through debt.
“The sum of N7.61bn is being used as cash collateral for the Letter of Credit established for the next gas turbines major overhaul,” part of the report said.
