Otedola Increases Stake in Tony Elumelu’s Transcorp to 6.3%

Two weeks after acquiring 2.2 billion (5.5%) of the issued shares of Transnational Corporation Plc., billionaire Femi Otedola acquired another 353.9 million shares to increase his stake to 6.3% or 2.6 billion shares in the company. His acquisition of the company’s shares has made him the second largest shareholder just behind Tony Elumelu through Heirs Holdings.

On the 12th of April, it was recorded that an off-market deal involving the purchase of 2.245 billion shares of Transcorp had taken place involving AMCON and a firm owned by Femi Otedola. After the purchase was made, Transcorp reported that they had not received formal notification of this purchase until last week when the company’s secretary, Funmi Olofintuyi, released a public statement pledging their commitment to “unwavering commitment” to superior stakeholders’ returns.

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The statement noted, “In compliance with Chapter 17, Rule 17.13 of the NGX Issuers Rules, Transnational Corporation Plc hereby informs the Nigerian Exchange Limited (NGX) and the investing public of the recent acquisition of 5.52% of shares in the Company by Femi Otedola.

“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.”

Last week, Mr. Otedola strengthened his stake in Transcorp by acquiring another 353.9 million shares through two separate tranches, as reported by his shareholders to the registrar.

On Thursday, Apt Securities and Funds Limited facilitated the acquisition of 105.5 million shares, causing a temporary increase in Mr. Otedola’s ownership from the initial stake of 2.2 billion (5.5%) to 5.8%. According to a letter from Stanbic IBTC Stockbrokers Limited to Africa Prudential, the energy mogul acquired another 228.4 million units of shares through the firm, bringing his total ownership in Transcorp to 6.3%, equivalent to 2.6 billion shares.

Once an investor reaches the 5% threshold for a substantial shareholding in the Nigerian Exchange, there is no obligation to disclose any further acquisitions.

The Transcorp deal is turning heads because the company is controlled by another billionaire, Tony Elumelu. Elumelu took over control of Transcorp in 2012. His holdings in the company comprise of 273.1 million shares held directly, 274 million shares held indirectly through Heirs Holdings Limited, and 294 million shares held indirectly through HH Capital Limited.

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Reports indicate that approximately 1,695 investors possess around 89% of the company’s shares, with UBA Nominees owning solely 9.25% of the company as of December 2022. Before Otedola, no other shareholder apart from Elumelu possessed more than 5% of the company’s shares. One of Transcorp’s leading institutional investors is Global X Management Co. LLC, a New York-based provider of exchange-traded funds. As of October 2021, Global X Management had $40 billion in assets under management.

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