“I Look Forward to Working With Transcorp”: Otedola Clears Air on Purchase of Shares
- The owner of First Bank of Nigeria Holdings, Femi Otedola, has confirmed his acquisition of majority shares in Transcorp
- The billionaire said he looks forward to working with the company’s management
- Otedola acquired about 6.3% of the corporation's shares worth N6 billion to strengthen his hold in the power sector
Billionaire Femi Otedola confirmed purchasing most Transnational Corporation (Transcorp) shares.
The billionaire confirmed the acquisition via a tweet on Monday, April 24, 2022, and said he looks forward to working with the corporation to achieve its potential.
Source: Facebook
Otedola reportedly acquires additional stake in Transcorp after initial 5% purchase
He said:
PAY ATTENTION: Join Legit.ng Telegram channel! Never miss important updates!
“Following this acquisition, I look forward to working with the board and management of Transcorp to realise the amazing future potential of the corporation …F.Ote.$.”
Transcorp filed a notice last week with the Nigerian Exchange Limited, disclosing that Otedola bought 2,245,639,251 units of the shares of the group, amounting to a 5.52% stake.
Punch reports that in the notice signed by the Transcorp Secretary, Funmi, Olofintuyi, the company said it welcomes the investment.
The company said it welcomes Otedola’s expression of confidence in its leadership and management as it continues its relentless commitment to superior stakeholders returns.
There were reports that the billionaire had acquired additional shares in the conglomerate to take his stakes above 6%.
Otedola pumps N6 billion into Transcorp
Daily Trust reports that Otedola’s acquisition of shares in Transcorp strengthens his investment in the company, which has its hands in the hospitality, power, and oil and gas sectors.
In two weeks, Otedola spent over N6 billion acquiring 2.6 billion shares, representing 6.3% of the company’s total shares, currently controlled by Tony Elumelu.
Otedola, who is also the Chairman of Geregu Power, is making a new investment to maintain his hold in the power sector. He purchased the shares on April 11 and 12, 2023.
The shares acquisition was midwifed by IBTC Stockbrokers Limited and Apt Securities and Funds Limited, which was about 228.4 million and 105.5 million, respectively,
Warren Buffet's investment style
Apt Securities' boss Mallam Garba Kurfi described Otedola as a deliberate investor who puts his money where he has interests and called him Nigeria’s Warren Buffet.
Reports say that Tony Elumelu holds about 273.1 million shares of Transcorp, 274 million indirect shares through Heirs Holdings Limited, and 294 million shares indirectly via HH Capital Limited.
According to reports, Otedola is the first single shareholder to own more than 5% of the company’s shares, as UBA nominees own about 9.25% of the company as of December 2022.
Transcorp also has about 39.65 billion out of its 40.65 billion outstanding shares on a free float.
Otedola’s Geregu power earmarks N40bn to buy FG’s power plant, 15 other firms also interested
Legit.ng reported that the Federal Government and states want to sell off five National Integrated Power Projects (NIPPs) and hope to raise about N260 billion.
The Bureau of Public Enterprises (BPE) has shortlisted 16 companies bidding to acquire the power generation companies.
Femi Otedola's company, Amperion Power, a substantial shareholder in Geregu Power, was listed among the 16 companies.
Source: Legit.ng
