Femi Otedola Becomes Second Largest Shareholder of Transcorp with 5.52% Stake

Nigerian Billionaire investor, Femi Otedola has now become the second largest shareholder of Transcorp by acquiring 5.52% of the company. This transaction was made possible by an agreement between an entity owned by Otedola and Asset Management Corporation of Nigeria (AMCON).

What should you know?

Transcorp is currently in the control of Tony Elumelu, a billionaire investor who gained control of the company in 2012. Ever since that time, the company has gone on to acquire a power generation company and branched into the oil and gas sectors of the economy among others. Transcorp controls subsidiaries like Transcorp Hotels, Transcorp Power, and Transcorp Energy. These bodies also have other businesses under their care. The latest acquisition adds to Mr Otedola’s recently acquired share in FBN Holdings and Geregu Power Plc.

Femi Otedola also recently acquired quite  significant control of FBN Holdings early last year when he announced he had acquired shareholdings above the 5% threshold. That also immediately acted as a trigger for a bidding war for the stock. However, unlike FBN Holdings, Transcorp has a single majority shareholder with control of the company.

According to Reports: 

•“We write to inform you that our client Femi Otedola (C4430272AP) has acquired additional unit of Transcorps shares that brings his percentage holdings with us to 5.8,”        -Apt Securities and Funds told the registrar Africa Prudential in a letter

•“Once you have hit that 5 per cent mark and they’ve announced that you are now a substantial shareholder, there is no further obligation on you to announce to either the NGX, SEC or CAC that you have bought more shares. It’s given that you are already a substantial shareholder,” - An official from The Nigerian Exchange disclosed 

•“As of December 31, 2022, only UBA Nominees Limited-Trading, held 5 per cent or more of the issued and fully paid shares of 50 Kobo of the company,” Transcorp said in its latest financial statement.

And as a confirmation of the successful transaction, a statement signed by the company secretary, Funmi Olofintuyi and issued on the Nigerian exchange as is mandatory, reads: 

“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. Rest assured of our commitment to remain resolute in executing our Group’s strategy of making strategic investments in key sectors within the Nigerian economy, our transformation agenda, and our ability to contribute positively towards building prosperity for all,” the statement noted.

The business mogul, Femi Otedola has also said that he is looking forward to working with the board and management of Transcorp to realize the amazing future potential of the corporation.

Otedola's latest investment in Transcorp highlights his interest in expanding his investments across various sectors in the Nigerian economy. It will be interesting to see how his new stake in the company will affect its future operations and growth.