Otedola gives up top ownership race in Transcorp, sells stake to Elumelu

Nigerian businessman Femi Otedola divested his newly acquired stake in Transnational Corporation of Nigeria (Transcorp) to Chairman Tony Elumelu, sources told PREMIUM TIMES Friday, pulling the plug on the scramble for the top ownership of the group.

The billionaire sold his substantial shareholding of 6.3 per cent, a haul of 2.6 billion shares bought in separate transactions, to Mr Elumelu.

Earlier, within days of his acquisition of a substantial shareholding, Mr Elumelu had racked up his interest from 2.07 to 25.9 per cent.

Transcorp shares, which had gained 173 per cent from the start of the year, slumped 9.9 per cent on the Nigerian Exchange (NGX) in Lagos.

Sources with details of the matter told PREMIUM TIMES that Mr Otedola’s move to take the peak spot in the conglomerate’s ownership upset the Transcorp chair, prompting him to open talks. He eventually agreed to compensate the businessman with millions of dollars, sources said.

“The Company welcomes this expression of confidence in its leadership and management,” Transcorp said in a recent note to the NGX, referring to Mr Otedola’s move.

Mr Otedola holds the most shares in FBN Holdings, and the majority-own Geregu Power, which he listed last year.

READ ALSO: Otedola raises stake in Transcorp to 6.3% with additional share purchase

On Thursday, Transcorp announced its chairman has upped his interest to 25.9 per cent or 10.5 billion shares, conferring more than a fourth of the corporation’s voting rights on him as the only principal shareholder.

UBA Holdings, which comes next in the hierarchy, holds less than 10 per cent.

Transcorp has three power plants, which account for 2,000 megawatts or more than 40 per cent of Nigeria’s total power-generating capacity. The conglomerate’s total assets stood at N464.5 billion at the end of March, compared to N442.7 billion as of the end of last year, going by its first quarter’s earnings report.