Tony Elumelu has reportedly buyout Femi Otedola in Transnational Corporation (Transcorp) to put an end to the hostile takeover which started two weeks ago.
Otedola allegedly sold the 2.6 billion shares he bought in Transcorp to Elumelu at the cost of about N32 billion, Business.Africa reported on Friday,
Otedola was said to have sold the shares after mutual friends intervened in the powerplay between him and Elumelu. This led to Otedola cashing out at over 300 per cent of the current market value.
Both Otedola and Elumelu are yet to publicly confirm the reports which began to circulate after both billionaires expressed willingness to work together at Transcorp.
Femi Otedola had written on his Twitter page on 24 April: “Following this acquisition I look forward to working with the board and management of Transcorp to realise the amazing future potential of the corporation.”
Again, on April 26, he wrote, “Well done @tonyoelumelu, my friend and astute investor. The admiration and respect is mutual. One love bro,” after Elumelu said he was pleased with Otedola buying up Transcorp shares.
In a statement reacting to Otedola’s share acquisition, Transcorp had also stated: “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.
“Rest assured of our commitment to 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 for all.”
Recall that after Otedola bought the 2.6 billion shares, Elumelu acquired 9.69 billion shares through his investment company, HH Capital Limited, to increase his stake to 25.2 per cent or 9.99 billion shares, from 2.06 per cent or 840.63 million shares.
This made the hostile takeover by Otedola difficult, as Elumelu now held 25.2 per cent compared to his 6.08 per cent.