Femi Otedola has again increased his stake in Transnational Corporation (Transcorp) Plc amid a takeover move that was foiled by the company’s Chairman, Tony Elumelu.
In a corporate filing sent to the capital market authority, Nigerian Exchange Limited (NGX) on Thursday, Transcorp informed shareholders that Otedola bought additional 228.38 million shares.
The acquisition followed the initial 2.45 billion shares Transcorp said Otedola bought as of April 19, 2023, which gave him 5.52 per cent stake in the firm.
On Thursday, Transcorp said Otedola made another acquisition, with the 228.38 million shares increasing his stake to 6.08 per cent.
Ripples Nigeria estimated that the 228.38 million shares cost Otedola about N559.54 million based on the closing price on the day the shares were bought.
Otedola had reportedly acquired the total of 2.47 billion shares in Transcorp to make a play for Elumelu’s position in the company.
However, Elumelu responded to the alleged takeover bid by also increasing his stake in Transcorp with the acquisition of 9.69 billion shares between April 19 to April 25, through his investment company, HH Capital Limited.
This increased Elumelu’s stake in Transcorp from 2.06 per cent to 25.2 per cent, enabling him to retain control of the diversified investment company.
It’s unsure if the powerplay in Transcorp has come to an end with the significant increase in Elumelu’s stake, as Otedola had made a similar move in First Bank in 2021.
Otedola had triggered a leadership tussle with Tunde Hassan-Odukale, First Bank’s previous largest single investor after acquiring a 5.07 per cent stake in late October 2021.
Hassan-Odukale, who held a direct stake of 4.31 per cent before Otedola bought First Bank shares, responded by declaring that Leadway Pensure RSA Account’s 1.01 stake is his indirect investment, increasing his total stake to 5.32.
Following the report, Otedola acquired additional shares, increasing his stake in First Bank to 7.56 per cent, which made him the highest single shareholder, taking control from Hassan-Odukale, who was told that he can’t add the shares of Leadway Pensure to his, as it is against Pencom rules.
This indicates Otedola is not new to leadership tussles in a publicly listed company.
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