Inside Tony Elumelu’s Strategic Move That Forced Otedola Out Of Transcorp
Femi Otedola, the billionaire businessman behind Geregu Power PLC, is no longer an investor in Transcorp Group, information at the disposal of highstreet.ng just revealed.
Transcorp Group, with African business leader and philanthropist, Tony Elumelu, as chairman, is a Nigerian conglomerate with interests in power, hospitality, and energy.
His exit from the company was announced on Friday, April 28, 2023, in a communication by Trancorp after the purchase of his newly acquired stake by Mr. Tony Elumelu.
Mr. Elemelu perfected the arrangement through HH Capital Limited, highstreet.ng understands.
In a circumstance that left many surprised, Mr. Otedola had acquired a total of 2,245,639,251 (5.5 percent) of Transcorp shares.
He was reported to have also went further to up his stake with the purchase of additional 228,384,959 shares of the company, bringing his stake in the enterprise to 6 percent.
But all that appears to have become a thing of the past as he has now handed off the arrangement.
His backing down, according to information, is not unconnected with Mr. Elumelu’s strategic business move.
Mr. Otedola actually backed down after Elumelu increased his shares by 9,697,189,984 units to 25.5 percent through his Special Purpose Vehicle, HH Captial Limited, information at hand revealed.
The breakdown of the transactions that heralded Mr Otedola’s exit from the company revealed that a total of 506,306,387 was purchased on April 27, 2023. This was followed by an additional purchase of 1,493,477,786 shares on April 28, 2023.
“506,306,387 at various prices; 1,492,750,816 at N3.12; 720,000 at N3.10 and 6,970 at N3.11. The aggregate volume is 1,999,784,173 at various prices.”
Interestingly, a regulatory filing by Transcorp reveals HH Capital Limited now holds a total of 9,991,173,177 units, representing 25.58 percent of the Company’s total shares.
