July 16, 2024

Femi Otedola acquires 5.52% of Transcorp Plc, threatens Elumelu’s controlling interest


Oredola Adeola

Femi Otedola, one of Nigeria’s richest has acquired a 5.52% share of Transnational Corp of Nigeria (Transcorp) Plc, a publicly traded Nigerian conglomerate with interests in hospitality, agriculture, oil production, and power generation, thereby emerging as the second largest shareholder, after Tony Elumelu, another billionaire entrepreneur, who owns a controlling interest in the company.

In what was seen as an overnight coup on Tuesday at the floors of the Nigerian stock exchange, EnergyDay gathered that Otedola who owns a controlling share of about 90% in Geregu Power Plc, consummated the deal with one of his companies and an unnamed seller.

EnergyDay reliably gathered that the former Chairman of Forte Oil Plc, bought the shares worth N3.1 billion of Transcorp Nigeria at the Nigerian exchange.

According to a source who is in the know of the transaction, the conglomerate’s shares at the exchange are floating shares, a large number of which are unrestricted and available for trading by any member of the public.

He emphasised that that was the condition that provided Otedola with the opportunity to acquire what comes close to a majority stake in Transcorp, without being subjected to boardroom scrutiny.

Meanwhile, Elumelu, the Chairman of Heirs Holdings, the United Bank for Africa and Transcorp controls about 9.25% of the company as of December 2022, giving him the control of the Board as the biggest shareholder.

EnergyDay however gathered that the Chairman of Geregu’s share is likely to challenge the Boardroom control by the Elumelu at Transcorp PLC.

Transcorp’s energy subsidiary, Transcorp Energy Limited, recently announced plans to build Nigeria’s first nuclear power plants.

EnergyDay gathered that the move aligns with the company’s plans to boost its integrated energy strategy while serving as an alternative energy source to improve access to electricity.