Billionaire Femi Otedola Withdraws Stake in Transcorp Plc After Deal with Tony Elumelu

In an interesting turn of events in the world of finance and investments, Multibillionaire, Femi Otedola has reportedly reached a deal with Tony Elumelu and withdrawn his stake in Transcorp Plc, exiting the company.

HERE’S WHAT YOU NEED TO KNOW

On Thursday, Femi Otedola and Tony Elumelu were reported to have entered a meeting to negotiate. The negotiations leading to the agreement were said to have been fast while still amiable as both parties agreed it was in their best interests to part ways. Elemelu and Otedola publicly agreed to work together to ultimately advance Transcorp’s interests.

The Billionaire, Femi Otedola was said to have initially acquired a 6% stake in Transcorp over a series of carefully planned purchases going until the acquisition was announced. It is understood that both parties will continue to explore other forms of collaboration over their common interest in the power sector.

Earlier on, in the Month of April, Otedola made an announcement, letting the public know that he had now acquired 5.52% of Transcorp Plc making him the second-largest shareholder of the company and in response to that, Elemelu strengthened his holdings in the company , increasing his ownership stake to about 25% which he announced on April 26th, 2023.

What Implications Could This Turn of Events Have?

Otedola's departure has unexpectedly concluded one of the most fascinating business maneuvers of 2023. On Friday morning, Transcorp's stock price dropped by 9.9%. The stock was being sold heavily, with more than 100 million shares available for sale and limited buying interest.

The ongoing partnership between Otedola and Elumelu in the power sector could have significant effects on the energy industry as a whole in Nigeria, given that both of these wealthy individuals are powerful figures in this field. By working together, they may be able to create fresh energy-related ventures and schemes that could bring about broader advantages for the country's economy and society.

Although an announcement is going to be made public on the Nigerian Exchange later on Friday 28th of April, it still remains to be seen how much change will happen with and winning Transcorp plc.