Fakoyejo OlalekanFemi Otedola’s share acquisition at Transnational Corporation (Transcorp) has triggered a leadership tussle, as Tony Elumelu acquires more shares to prevent losing his position in the diversified investment company.
Elumelu acquired 9.69 billion shares (worth about N23 billion) of Transcorp Plc a week after the company confirmed Otedola acquired 2.24 billion shares or 5.52 per cent stake in Transcorp.
After Otedola’s acquisition, he displaced Elumelu as the single majority shareholder in Transcorp, however, days after, Elumelu increased his stake in the firm.
Elumelu previously held a 2.06 per cent stake in Transcorp. With his recent acquisition, he now holds a 25.2 per cent controlling stake in the diversified investment firm. This is the highest single majority stake in the firm.
What you need to know
Prime Business Africa gathered that Elumelu bought the 9.69 billion shares through HH Capital Limited, which previously held 293.98 million shares on behalf of Elumelu, but now holds a total of 9.99 billion shares.
Elumelu also holds 273.54 million shares indirectly through Heirs Holdings Limited and 273.10 million direct shares. This brings the total shares held by the investor to 10.26 billion shares.
The total value of Elumelu’s investment in Transcorp is now N30,28 billion as of Wednesday, from N2.47 billion as of December 31, before his recent acquisition
Otedola’s total investment value in Transcorp is N6.60 billion.
Commenting on the share acquisition of Elumelu, Transcorp said: “With this new acquisition, HH Capital Limited now holds a total of 9,991,173,177 units, representing 25.58% of the Company’s total shares.
“As noted in our previous communication, the Company welcomes the continued expression of confidence in its leadership and management by the investing public, as we continue our unwavering commitment to superior stakeholders’ returns, anchored in our ideology of Africapitalism.
“Rest assured, we are committed to remaining resolute in executing our Group’s strategy of making strategic investments in key sectors within the Nigerian economy, transforming Africa, and contributing positively towards building prosperity for all.”
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