Elumelu spends N23bn to recapture Transcorp from Otedola

In a dramatic move Tony Elumelu has regained control of Transcorp from Femi Otedola, whose  acquisition of a 5.52 per cent stake in Transcorp barely two weeks back came as a huge surprise, as he overtook Elumelu, who owned a 2.06 per cent stake in the company.

In a strategic move, Elumelu paid N23bn to acquire 9.69 billion shares, pushing his total holdings, direct and indirect, to 30% by this he has retaken control of the leading Nigerian conglomerate, from Femi Otedola, another billionaire entrepreneur.

It would be recalled that barely two weeks back, Otedola bought 2.24 billion shares in Transcorp, which handed him a 5.52 per cent stake which gave him the controlling holding of the company as the highest shareholder.

The acquisition came as a surprise to many, as Elumelu had controlled Transcorp but only owned a 2.06% stake.

Elumelu now came to retake the company through his investment company, HH Capital Limited, which previously held 293.98 million shares, as it now acquired another 9.69 billion shares worth N23 billion.

The orporate document shared with shareholders and the capital market authority, Nigerian Exchange Limited (NGX) reads: “With this new acquisition, HH Capital Limited now holds a total of 9,991,173,177 units, representing 25.58% of the Company’s total shares.

” Elumelu also owns direct shares of 273.10 million and indirect shares of 273.54 million (through Heirs Holdings Limited) in Transcorp Plc.

The acquisition through HH Capital Limited has now increased his total shares in Transcorp to 10.26 billion, from 840.63 million, almost 30% controlling power. This is higher than Otedola’s 5.52% shareholdings.