Billionaire Femi Otedola has exited his stake in Transcorp Plc, just a few days after it was revealed that he has a 6% stake in the company.
Femi Otedola has sold his Transcorp shares to Tony Elumelu after mutual friends intervened.
The battle for the ownership of Nigeria’s biggest conglomerate between two of Nigeria’s finest business tycoons, Tony Elumelu and Femi Otedola, has finally come to an end as Femi Otedola has sold his Transcorp shares with a premium to Tony after mutual friends led by Aliko Dangote intervened in the battle, putting an end to an intriguing corporate drama that has shocked, rocked, and rolled Nigeria’s capital markets over the past several days.
According to multiple sources that I spoke to, the two businessmen share so many mutual friends, and one of them is Aliko Dangote.
As a result, when the news first surfaced two weeks ago, Aliko Dangote and other members of their shared social circle began pressuring Femi Otedola to abandon his lofty goal of carrying out a hostile takeover of Transcorp, which was Otedola’s original plan.
According to a media outlet, Billionaire Africa, a privileged source who enjoys proximity to the two billionaires and who requested anonymity claims that, as a way of settlement, Elumelu paid Otedola a 400-percent premium on Transcorp’s closing price on Thursday night to acquire his bloc of shares.
This would mean that Otedola, who owned 2.6 billion shares, or 6.3 percent of the company, was paid somewhere in the neighborhood of NGN 12.5 per share and walked away with N32.5 billion cash out.
Despite the fact that the two men share close relationships and call each other brothers, Tony was not aware of the move by Femi Otedola to invest in his company as he woke up to the news, just like many of us were.
Sources close to Otedola confirmed that the chairman of Geregu Power was keen on wrestling control of Transcorp from Elumelu and was eyeing its lucrative power assets.
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