Business
Tony Elumelu makes N638.8m as Otedola acquires stake in Transcorp
The chairman of Transnational Corporation (Transcorp) Plc, Tony Elumelu, became N638.88 million richer this week following the billionaire businessman, Femi Otedola’s investment in the company.
The value of Elumelu’s investment in Transcorp Plc was N1.42 billion as of last Friday but this increased by 50 percent after four days trading this week.
Transcorp became the most sought-after equity in the Nigerian stock market after reports emerged last week that Otedola was interested in the company’s shares.
Although the business did not immediately confirm that he was mopping shares belonging to Transcorp, the reports were enough to further raise the capital market’s confidence towards the diversified investment company.
The development also convinced shareholders to retain their stake in the company. The decision raised Transcorp’s share price from N1.69 kobo to N2.45 kobo on Thursday.
READ ALSO: Transcorp confirms Femi Otedola paid N5bn for 5.52% stake in Elumelu’s company
As a result, Elumelu gained N638.88 million on his investment, as high demand increased the value of the shares he holds in Transcorp.
At the end of December 31, 2022, Elumelu owned a total share of 840.63 million in Transcorp.
Ripples Nigeria’s analysis of Transcorp’s stock market performance showed that the 50 percent appreciation in the firm’s stock price raised Elumelu’s total investment from N1.42 billion to N2.05 billion in four days this week (the stock market did not open on Friday due to the Eid-el-Fitr holiday).
The businessman bought 2.24 billion shares or 5.52 percent stake in Transcorp on Thursday.
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