Nigerian billionaire and business mogul, Femi Otedola, has divested from indigenous conglomerate, Transcorp Corporation Plc, just weeks after acquiring substantial shareholding.
According to a report by Nairametrics, Otedola exited his 6.62 per cent stake in Transcorp after reaching a deal with the chairman of the conglomerate, Tony Elumelu, following negotiations between both parties.
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The report said that the negotiations leading to the agreement were swift yet cordial as both parties believed it was in their mutual best interest to go their separate ways.
This comes hours after Elumelu and Otedola publicly agreed to work together to promote Transcorp’s interests.
Sources also indicate the attention drawn by the jostle for shareholding was a distraction for the company thus paving the way for a decision to part ways.
It was explained that the transaction closed at the prevailing market price of Transcorp Plc as of Thursday. Shares of Transcorp closed at N3.12 per unit on Thursday.
The fight for control of Transcorp began when Otedola acquired a 5.52 per cent stake in the conglomerate, making him the second-largest shareholder in the company. With the purchase of additional shares, Otedola upped his stakes to over six per cent.
However, in a deft move, Elumelu raised his stake in the company from 2.07 per cent to 25.58 per cent on Thursday through HH Capital Limited, where he’s a director, thereby surpassing Otedola’s stake.
Announcing Otedola’s exit on Friday, Transcorp notified the “Purchase of Transnational Corporation Plc shares by Mr. Tony Elumelu, CFR through HH Capital Limited.
“506,306,387 at various prices; 1,492,750,816 at N3.12; 720,000 at N3.10 and 6,970 at N3.11. The aggregate volume is 1,999,784,173 at various prices.”
The details of the transaction shows that 506,306,387 was purchased on April 27, 2023 while 1,493,477,786 shares was purchased on April 28, 2023.
