Otedola pays N5bn for 5.52% stake in Transcorp   

Business mogul, Mr.Femi Otedola has acquired N5 billion worth of shares in a diversified investment company, Transnational Corporation (Transcorp) Plc.

In a circular released on the Nigerian Exchange Limited (NGX) on Thursday, Transcorp said Otedola bought 2.24 billion shares.

The shares cost Otedola N5 billion and earned him a 5.52 per cent stake in Transcorp. The firm said details of the acquisition were as of April 19, 2023.

This places Otedola above Tony Elumelu, the chairman of Transcorp, who owns a 2.06 per cent stake in the investment company as of December 31, 2022.

Prior to Otedola’s acquisition, Elumelu was the single majority investor in Transcorp through his 273,104,041 direct shares and indirect shares of 293,983,193 held through HH Capital Limited and 273,545,722 shares held in Heirs Holdings Limited.

The other majority shareholder is UBA Nominees Limited, which manages 9.25 per stake for various investors. UBA Nominees and Otedola are the only investors with stakes above 5 per cent in Transcorp.

Commenting on the acquisition, Transcorp, in the statement signed by its Company Secretary, Funmi Olofintuyi, 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”.

Otedola also owns a controlling stake in a commercial bank, First Bank of Nigeria (FBN) Holdings, and power plant firm, Geregu Power.