Femi Otedola Acquires Major Stake In Transcorp Plc Shares

Otedola Becomes Largest Shareholder At First Bank Holding
Otedola Becomes Largest Shareholder At First Bank Holding

Nigerian billionaire Femi Otedola has acquired a major stake of Transcorp Plc shares, Brandspur Nigeria reports.

Confirming the reports on Thursday, April 20, Transnational Corporation (Transcorp) Plc, said Otedola, who is also the majority investor in Geregu Power, acquired 2.24 billion shares, which gives him a 5.52 per cent stake in Transcorp.

According to a corporate document filed with the Nigerian Exchange Limited (NGX), the stock market authority, the equity information was as of Wednesday, 19 April 2023.

The worth of the 2.24 billion shares was estimated at N5 billion when the shares are pegged to the company’s equity price of N2.23 kobo per share recorded on Wednesday.

Femi Otedola Acquires Major Stake In Transcorp Plc Shares

With the acquisition, Otedola holds more shares than Tony Elumelu, the current chairman of Transcorp Plc, whose stake in the company is 2.06 per cent.

As of 31 December 2022, Elumelu held 273,104,041 direct shares in Transcorp. Also, the businessman also held 293,983,193 indirect shares through HH Capital Limited and 273,545,722 indirect shares through Heirs Holdings Limited.

In the statement announcing Otedola’s share ownership in Transcorp, the company said: “As noted in our previous communication, the Company welcomes this expression of confidence in its leadership and management as we continue our unwavering commitment to superior stakeholders’ returns, anchored in our ideology of Africapitalism.

“Rest assured of our commitment to remain resolute in executing our Group’s strategy of making strategic investments in key sectors within the Nigerian economy, our transformation agenda and our ability to contribute positively towards building prosperity for all.”

This shows Otedola confirmed the share acquisition to Transcorp, considering the firm revealed a week before that no investor has informed the company that he or she bought its shares after reports circulated that Otedola was mopping Transcorp’s shares in the Nigerian stock exchange.

“Whilst the Company has not yet received formal notification of any relevant interest in its shares, Transcorp, Nigeria’s largest listed conglomerate, known for its broad and diversified shareholder base, welcomes every new shareholder acquiring shares in the Company,” Transcorp said last week.