Otedola acquires 5.52% stake in Transcorp

Indigenous conglomerate, Transcorp Corporation Plc, has disclosed that billionaire businessman, Femi Otedola, has bought 2,245,639,251 units of the shares of the group, which amounts to a 5.52 per cent stake.

This disclosure comes amidst reports that Otedola had bought a considerable stake in the conglomerate, whose shares have been witnessing massive activity on the Nigerian Exchange Limited since last week, topping both volume and value charts.

In a notice filed by the Company Secretary, ‘Funmi Olofintuyi, with the NGX on Thursday, Transcorp said that it welcomes the investment.

“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.

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“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 2022 financial report of Transcorp revealed that as of December 31, 2022, only UBA Nominees Limited-Trading, held five per cent or more of the issued and fully paid shares of 50 Kobo of the company.

Also, Tony Elumelu, who is the chairman of the group, directly holds 273,104,04 units of shares while 293,983,193 shares are held indirectly through HH Capital Limited and 273,545,722 shares are held indirectly through Heirs Holdings Limited.

UBA Nominees Limited has UBA Trustees Limited, Mr Emmanuel Nnorom and three others as directors and it is controlled by UBA Group, which has Elumelu as its chairman.

The Transcorp corporation has investments in power generation, hospitality and the oil and gas sectors of the economy, while Otedola is the majority shareholder in Geregu Power generation company.

At the end of trading on Thursday, Transcorp shares closed at N2.45, representing a 9.87 per cent appreciation from Wednesday’s closing price of N2.23.