June 22, 2024

Otedola raises controlling share in Transcorp Plc to 6.3%

Oredola Adeola

Femi Otedola, the billionaire Chairman of Geregu Power Plc, has scaled his stake in Transnational Corporation Plc (Transcorp) – a conglomerate with strategic investments in the power, oil & gas, and hospitality sectors – from about 2.245 billion shares, representing 5.52per cent of the company to 2.6 billion shares, representing 6.3 percent.

This was confirmed by the billionaire in a tweet acknowledging a report by AriseNews on Wednesday and seen by EnergyDay.

Otedola’s Transcorp’s share, estimated at N6 billion, was also confirmed by Apt Securities and Funds Limited, a trading license holder.

The billionaire in the tweet, stated that the stakes are going higher.

With that remark, Otedola has therefore raised his control of investment in the Nigerian power sector, after the success he has achieved with Geregu Power Plc, a starburst subsidiary of the now-defunct Power Holding Company of Nigeria(PHCN) that he acquired in 2013.

Based on Transcorp’s audited result and accounts posted by the NGX for the year ending December 31, 2022, Elumelu, owns a controlling interest in Transcorp Corporation with a total of 273,104,041 share capital in the diversified conglomerate.

He controls HH Capital Limited’s 293,983,193 shares and Heirs Holdings Limited’s 273,545,722 shares both indirectly.

EnergyDay gathered that the projected holdings of the conglomerate showed that UBA nominees’ Ltd control 9.26% of shares, Femi Otedola 6.3 %, Tony Elumelu 2.06 %, Stanbic IBTC nominees 0.99%, and Mike Adenuga 0.86 % of shares.

In 2013, Transcorp Power Limited (TPL), acquired the 972MW gas-fired Ughelli Power Plant, which has since been phenomenally transformed.

Transcorp in 2021 adopted an integrated energy strategy with the investment of $300 million into the acquisition of Afam Power Plant Plc and Afam III Fast Power Limited, with an installed capacity of almost 2,000MW.

In January 2023, the company confirmed the upgrade of the plants from 48MW average generation in 2021 to 120 MW generation.

It has also shown investment interest in nuclear power plants, consolidating its stake in Nigeria’s power sector.

The conglomerate had through that investment demonstrated its long-term strategy towards delivering robust electricity supply to address Nigeria’s energy needs as well as the growing demand in the region.

Transcorp in its oil & gas investment owns OPL 281 (formerly OML44 when operated by Shell) and OML17 from the Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited, and ENI.