Fakoyejo Olalekan
Femi Otedola has confirmed that he acquired shares in a diversified investment company, Transnational Corporation (Transcorp) Plc.
In the past two weeks, reports had circulated that Otedola is buying up shares in Transcorp, a move that instantly renewed the capital market’s confidence in Transcorp.
Join our WhatsApp ChannelLast week, Transcorp released a statement to confirm that the businessman has acquired a significant stake in the investment firm.
The company said Otedola bought 2,245,639,251 units of shares representing a 5.52 per cent stake in Transcorp. This stake was worth N5 billion the day he was said to have last acquired the shares.
In a statement released to the capital market authority, the Securities and Exchange Commission (SEC), Transcorp said it welcomes the share acquisition as it shows investors have confidence in the company
“As noted in our previous communication, the Company welcomes this expression of confidence in its leadership and management as we continue our unwavering commitment to superior stakeholders’ returns, anchored in our ideology of Africapitalism,” Transcorp wrote.
However, Otedola didn’t make a statement within the two weeks the reports circulated until on Monday, 24 April, when he took to his Twitter account to issue a statement disclosing he is now a majority shareholder in Transcorp.
Otedola said he looks forward to working with Transcorp’s board and management, “Following this acquisition I look forward to working with the board and management of Transcorp to realise the amazing future potential of the corporation,” his statement on Twitter reads.
Last week, Transcorp closed trading in the Nigerian stock market as the best-performing equity, after the company’s share increased by 44.97 per cent.
Transcorp shares had opened the Nigerian bourse at N1.69 kobo per share on Monday, 17 April, but it closed trading on Thursday, 20 April, at N2.45 kobo per share, before the stock market went on break on Friday, due to the Eid el-Fitr public holiday.
