The billionaire businessman, Femi Otedola’s exit from Transnational Corporation (Transcorp) has resulted in a 9.93 percent drop in shareholders’ investment value.
Ripples Nigeria had reported that Otedola bought a total of 2.47 billion shares representing a 6.08 percent controlling stake in the company on April 20.
The development pushed Otedola above the Transcorp chairman, Tony Elumelu, as the single majority shareholder in the company.
Elumelu, who owned just a 2.06 percent stake in Transcorp prior to Otedola’s acquisition, responded by buying 9.69 billion shares to increase his total shares in the firm from 840.63 million to 9.99 billion shares between April 19 and 28.
Consequently, Elumelu’s stake in Transcorp rose from 2.06 percent to 25.2 percent, resulting in another power shift from Otedola to the former.
However, reports emerged on Friday that Otedola has exited Transcorp by selling his shares to Elumelu after friends of the investors intervened to settle the powerplay between them.
This led to a significant drop in Transcorp’s share value for the first time in three weeks after enjoying a bullish run from April 11 to April 27.
The positive trend increased shareholders’ investment value by 122.8 percent during the period.
However, this ended on Friday after profit-takers dumped Transcorp shares following reports on Otedola’s disinvestment from the company.
Transcorp’s share price crashed from N3.12 kobo to N2.81 kobo on Friday, dragging down shareholders’ investment by N12.6 billion or 9.93 percent.
But Otedola and Transcorp have not confirmed the businessman’s disinvestment from the company.
Efforts by Ripples Nigeria to reach out to the parties have been unsuccessful.
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