Sunday , June 16 2024
Transcorp: New Twist as Otedola Reveals Reasons Behind Stake Sales

Transcorp: New Twist as Otedola Reveals Reasons Behind Stake Sales

Following the news of Billionaire investor, Mr Femi Otedola exiting its investment in Transcorp Incorporated Plc over Mr Tony Elumelu’s HH Capital Limited purchasing more stake in the diversified conglomerate, more shocking details have come to light.

The details were revealed by Otedola in a statement made available to media houses.

Recall Business Remarks reported that Femi Otedola had in April acquired 5.05per cent shares stake Transcorp making him the second-largest shareholder of the company. The purchase immediately triggered a rally for the share price of the stock, doubling in under two weeks

However, the report has it that Otedola had reached a deal with Elumelu to exit the conglomerate that is into Power, Oil & Gas, and Hospitality sectors.

With more purchases by HH Capital Limited, Femi Otedola, according to a capital market source had sold all of his stake to Elumelu exiting his entire stake from the conglomerate.

Also Read: Transcorp Group Closes Gross Profit at N66.4 billion

Going down memory lane, Otedola revealed an ongoing tension between Elumelu and himself in different business dealings contrary to popular opinion.

In his statement, Otedola revealed he became Chairman of Transcorp Hotel in 2007 with a shareholding of 5% and unknowingly Tony Elumelu gradually started buying shares quietly.

The full excerpt of Mr Otedola’s statement reads;

“In 2005, while Tony was the Managing Director of Standard Trust Bank he approached me to get funds to acquire UBA. I enthusiastically gave him $ 20 million, which was N2 billion at that time to buy the necessary shares in UBA for the acquisition. After a short time, the share price moved up and I decided it was a good moment to sell and get out of the bank. However, Tony appealed to me to hold on to the shares as he was convinced that there were future prospects – so I kept the shares.”

“I became Chairman of Transcorp Hotel in 2007 with a shareholding of 5% stake and unknowingly Tony gradually started buying shares quietly.”

“By the following year in 2008, I went bankrupt in Nigeria. Tony proceeded to take my shares in UBA to service the interest on my loans and he also took over my shares in Africa Finance Corporation, where I was the largest shareholder.”

Also Read: Transcorp Group Revenue Rises to N134.7 Billion in 2022

“Shortly after, Albert Okumagba informed me that an American firm wanted to acquire my shares in Transcorp, which I then agreed to sell. However, this supposed American firm turned out to be Tony Elumelu. The revelation of this prompted me to resign as Chairman of the hotel.”

“Years later in 2012 Tony said he wanted to see me so we met in my office where I had previously had a meeting with foreign investors who had not yet departed the premises. Curious to know, he asked what sort of meeting I had had and I disclosed that I wanted to go into the power business, specifically Ughelli Power Plant. Tony quietly went ahead to bid for Ughelli and he outbid me by offering to buy the plant for $ 300 million.”

“And as some would say: the rest is history.”

“Fast forward to the present…”

“I offered to buy Transcorp Plc for N250 billion, but unfortunately, my offer was rejected. My goal was to maximize the company’s potential as a Nigerian conglomerate with a market cap of at least N2 trillion instead of the current N40 billion, but it seems some shareholders have a different vision.”

“As a businessman, I believe in healthy competition and market dynamics. Two captains cannot man a ship, and I respect the majority shareholder’s decision to buy me out. This is the nature of the game.”

“But let me be clear: my offer was made with the best intentions for Transcorp Plc and its shareholders. I saw an opportunity to unlock the company’s full potential and create value for everyone involved.”

“It’s important for investors to understand that free entry and free exit are crucial to healthy markets. The scramble for shares after my acquisition is a testament to the value that Transcorp Plc can offer, and I hope the company continues to thrive under new leadership.”

“My message to Transcorp Plc and its shareholders is this: I remain committed to the growth and success of Nigerian businesses, and I will always be looking for ways to create value for all stakeholders. Stakeholders are unfortunately always shortchanged by getting stipends while the owners and managers of the business live a jet-set lifestyle, which is detrimental to the stakeholders. Thank you for the opportunity to engage in this exciting chapter of Transcorp’s history.” Femi Otedola

Mr Otedola apparently accuses Tony Elumelu of taking his shares in UBA and Africa Finance Corporation to service the interest on his loans when he went bankrupt in Nigeria.

He accused the Chairman of Transnational Corporation of Nigeria (Transcorp), Tony Elumelu, of backstabbing him repeatedly at his most vulnerable moments in business.

About Bukola Olanrewaju

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