Business

Otedola exits Transcorp, sells 6.3% stake to Tony Elumelu

The chairman of Geregu Power, Femi Otedola, has exited his 6.3 per cent stake in the indigenous conglomerate, Transcorp Corporation Plc.

This comes barely a few weeks after Otedola acquired substantial shareholding.

The billionaire businessman was said to have exited his stake in Transcorp after reaching a deal with the chairman of the conglomerate, Tony Elumelu, after negotiations between them.

According to a report by Nairametrics, the negotiations leading to the agreement were swift and cordial as both parties believed it was in their mutual best interest to go their separate ways.

This comes hours after Elumelu and Otedola publicly agreed to work together to promote Transcorp’s interests.

Sources further disclosed that the jostle for shareholding was a distraction for the compan, thereby paving the way for a decision to part ways.

Otedola had acquired a 5.52 per cent stake in the conglomerate, making him the second-largest shareholder in the company.

With the purchase of additional shares, Otedola increased his stake to over six per cent.

However, on Thursday, April 27, Transcorp declared that a special purpose vehicle (SPV) owned by Elumelu, HH Capital Limited, increased its stake in the conglomerate to 25.58 percent.

“In compliance with Chapter 17, Rule 17.13 of the NGX Issuers Rules, Transnational Corporation Plc (the Company) hereby informs the NGX and the investing public of the below new acquisition of shares in the company.

“With this new acquisition, HH Capital Limited now holds a total of 9,991,173,177 units, representing 25.58 per cent of the company’s total shares,” Transcorp said.

The Star