Fakoyejo OlalekanNigerian billionaire (in Naira), Femi Otedola, has reportedly acquired 5.52 per cent ownership of diversified investment firm, Transnational Corporation (TransCorp).
The acquisition cost Otedola N3.14 billion (based on the share price of Tuesday, April 11, 2023) and made him one of the major shareholders in TransCorp.
Prime Business Africa (PBA) reports that Mr Tony Elumelu, the current chairman of TransCorp, still controls the Corporation as a result of his 273,104,041 direct shares, as well as his 293,983,193 shares and 273,545,722 shares indirectly held through HH Capital Limited and Heirs Holdings Limited respectively.
Otedola has not publicly confirmed the purchase of stake in TransCorp, just as the company, on Thursday, released a statement saying that it had not received formal notification from any investor.
The reports of Otedola’s share purchase followed high trading on the company’s shares in the Nigerian stock market since Tuesday. This shows that a substantial investor mopped massive shares of TransCorp on the trading floor.
A source told PBA that “the shares have been in the market through AMCON for a while. It has been offered to a number of people.”
In its response to reports that there’s a new investor in town, Transcorp said the company is open to new investors interested in acquiring its shares.
The statement from the firm reads: “Transnational Corporation Plc (“Transcorp” or “the Company”) notes the recent media reference to the acquisition of shares in the Company.
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“Whilst the Company has not yet received formal notification of any relevant interest in its shares, Transcorp, Nigeria’s largest listed conglomerate, known for its broad and diversified shareholder base, welcomes every new shareholder acquiring shares in the Company.
“We welcome this expression of confidence in the leadership and management of Transcorp, as we continue our unwavering commitment to superior stakeholders’ returns, anchored in our ideology of Africapitalism.
“We remain resolute in executing our Group’s strategy of making strategic investments in key sectors within the Nigerian economy, our transformation agenda and our ability to contribute positively towards building prosperity.
“The Group released its financial results for the full year ended December 31, 2022, showing total revenue rose by 21%, from N111.2billion in December 2021 to N134.7billion in the period under review. Transcorp’s share price has risen by 23.9% year to date.”
Surely, the writer does not know the story behind Transcorp creation. Elumelu does not own Transcorp. He might be the Chairman.Transcorp was the creation of some individuals under the aegis of corporate Nigeria, The NSE under Mrs Ndifreka Okereke-Onyiuke working in collaboration with the Olusegun Obasanjo administration. This same Transcorp with price less than N2 per share was purchased by Nigerians at N10 per share. So many investors died while others are nursing nervous illnesses due to investments in Transcorp.. Elumelu does not own Transcorp. He has done a fantastic job as the Chairman no doubt but the return on investment to initial investors in the company remained abysmally low