In a significant move within Nigeria’s financial and energy sectors, Fola Adeola, co-founder of Guaranty Trust Bank (GTBank) and a prominent figure in the country’s financial landscape, has sold 18.25 million shares in Aradel Holdings Plc. The transaction, valued at approximately N10.9 billion, was disclosed in a regulatory filing submitted to the Nigerian Exchange Limited (NGX).
The sale, which took place on December 31, 2024, saw each share sold at N598.50. Adeola, who held over 5% equity in Aradel Holdings prior to the transaction, remains a major shareholder in the company. Aradel Holdings, formerly known as Niger Delta Exploration & Production Plc, is a leading energy company with substantial investments in oil and gas.
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According to a statement signed by Aradel’s Company Secretary, Titi Omisore, the sale is part of routine share dealings by insiders and complies with regulatory requirements. While no official reason was provided for the transaction, industry analysts speculate that Adeola’s decision may be a strategic financial move.
Adeola’s influence extends beyond banking. He is the founder of FATE Foundation, an organization dedicated to supporting entrepreneurs, and a member of the Commission for Africa. His latest financial maneuver has sparked interest among investors, particularly given Aradel Holdings’ impressive performance on the Nigerian Exchange.
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Aradel Holdings: A Rising Star in Nigeria’s Energy Sector
Aradel Holdings has been making waves in Nigeria’s energy sector, attracting both local and international investors. The company recently transitioned from over a decade on the NASD OTC market to a public listing on the NGX at N702.69 per share. This move has further solidified its market credibility.
In addition to its listing, Aradel has been actively expanding its portfolio. Earlier this year, the company announced plans to acquire a 5.14% stake in Chappal Energies Mauritius Limited, an investment vehicle focused on high-value upstream energy projects across Africa. Aradel also revealed intentions to acquire Nigeria’s Olo and Olo West fields from TotalEnergies and NNPC for $16 million, with an additional $3.5 million in deferred payments.
Strong Financial Performance
Aradel’s financial performance has been nothing short of exceptional. Between 2019 and 2023, the company achieved a compound annual growth rate (CAGR) of 48.11%. Despite a slight revenue dip in 2020 due to the COVID-19 pandemic, Aradel rebounded strongly, posting a 58.53% year-over-year (YoY) growth in 2021 and an impressive 234.51% YoY growth in 2023.
This growth has been driven by increased production and elevated global crude oil prices. In 2023, crude oil output rose by 146.82% YoY, gas production increased by 48.6% YoY, and refined products surged by 74.62% YoY. The company has maintained its momentum in 2024, recording a 207% YoY revenue growth in the first nine months of the year, with revenues reaching N377.58 billion.
What This Means for Investors
Adeola’s sale of shares comes at a time when Aradel Holdings is solidifying its position as a key player in Nigeria’s energy sector. The transaction highlights the dynamic nature of insider dealings in publicly traded companies and underscores the importance of regulatory compliance.
For investors, Aradel’s consistent growth and strategic acquisitions present a compelling opportunity. As the company continues to expand its footprint in the energy sector, its performance on the NGX will be closely watched by market participants.
As the story develops, all eyes will remain on Aradel Holdings and its influential stakeholders, including Fola Adeola, whose financial decisions continue to shape Nigeria’s economic landscape.
Stay tuned for more updates on this developing story.
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