Fakoyejo OlalekanIn a move that further consolidates Tony Elumelu’s shareholding, the fourth majority single shareholder in Transnational Corporation (TransCorp) Plc, Emmanuel Nnorom, has offloaded 98 per cent of his shares after Femi Otedola did same.
Nnorom sold 11.40 million shares on April 27 to profit from the boom Transcorp shares experienced during the interface between Elumelu and Otedola regarding shareholding in TransCorp.
The sale was disclosed in a corporate document dated May 3, 2023, which was sent to shareholders and the capital market authority, Nigerian Exchange Limited (NGX).
Prime Business Africa noted Transcorp’s share value rose by 122.8 per cent between April 11 to April 27, as demand for the firm increased after reports that Otedola was buying the shares of the diversified investment company.
Nnorom was one of the shareholders that benefited from the bullish run, as the value of his investment in TransCorp rose by 123 per cent.
This is significantly more than the 16.3 per cent growth he and other TransCorp shareholders recorded in the whole of 2022.
Prime Business Africa’s analysis of Nnorom’s investment showed that the investor gained a whooping N20.04 million from the interface between Otedola and Elumelu.
Nnorom’s investment value rose from N16.31 million to N36.35 million between April 11 to April 27. He sold his shares on Friday, to take out N35.56 million.
Note that his name began to appear as one of TransCorp’s majority shareholders in 2020 when TransCorp’s share was trading at an average of N0.74 kobo.
When the average price of TransCorp’s share in 2020 is pegged to Nnorom’s total shares of 11.65 million, his investment value was just N8.62 million in 2020. This means he recorded aper cent or N27.73 million return on investment within four years.
Meanwhile, Nnorom has just 253,487 shares or N641,322 investment in Transcorp as of April 27, after selling off 98 per cent of his shares.
What you need to know
Since he offloaded his shares, TransCorp’s stock value dropped by -19 per cent, as Nnorom and other profit-takers holding TransCorp shares took advantage of the gains recorded in the last three weeks by selling off their investment at the peak of N3.12 kobo.
Otedola exited TransCorp by selling his shares to Elumelu.
It was widely reported last week Friday that friends of Otedola and Elumelu intervened and Otedola was reportedly told to offload his shares in the company that has investments in power and hotel businesses in Nigeria.
Otedola reportedly sold the 2.47 billion shares he bought in TransCorp two weeks after.
Prior to Otedola selling the shares, Elumelu owned substantial percentage stake in TransCorp but bought more following Otedola’s actions.
Elumelu increased his shares to 9.99 billion shares from 840.63 million shares, between April 19 to 28, raising his stake in TransCorp to 25.2 per cent.
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