Otedola Bows out as Elumelu’s Stake in Transcorp Hits 29.5%

Kayode Tokede
 

Billionaire investor, Mr. Femi Otedola has finally exited its investment in Transcorp Incorporated Plc over Mr. Tony Elumelu’s HH Capital Limited purchasing more stake in the diversified conglomerate.

The acting Company Secretary, Transcorp, ‘Funmi Olofintuyi in a statement on the Nigerian Exchange Limited (NGX) yesterday disclosed that HH Capital Limited acquired 1,999,784,173, bringing its total stake to 11,990,957,350 units, representing 29.5per cent of the company’s total shares as of April 28, 2023.

 She said, “As noted in our previous communication, the Company welcomes the continued expression of confidence in its leadership and management by the investing public, as we continue our unwavering commitment to superior stakeholders’ returns, anchored in our ideology of Africapitalism.

“Rest assured, we are committed to remaining resolute in executing our Group’s strategy of making strategic investments in key sectors within the Nigerian economy, transforming Africa, and contributing positively towards building prosperity for all.”

HH Capital Limited, a Special Purpose Vehicle (SPV) owned by Elumelu had acquired 9,697,189,984 units of shares, bringing its total holdings in Transcorp Incorporated to 9,991,173,177 units, representing 25.58per cent of the Company’s total shares as of April 25.

Femi Otedola had announced in April that he had acquired 5.05per cent of Transcorp making him the second-largest shareholder of the company. The purchase immediately triggered a rally for the share price of the stock, doubling in under two weeks.

In response to Femi Otedola’s acquisition, Elemelu consolidated his holdings, increasing his ownership stake to about 25per cent which he announced on April 26th, 2023.

A stockbroker in the capital market disclosed to THISDAY that Otedola had reached a deal with Elumelu to exit the conglomerate that is into Power, Oil & Gas, and Hospitality sectors.

With more purchases by HH Capital Limited, Femi Otedola, according to capital market source had sold all of his stake to Elumelu exiting his entire stake from the conglomerate.

Market official data indicate a total of 2,413,144,252 shares were sold as an off-market trade based on three deals. The official transaction price was N3.12.

APT Securities Limited and United Capital Securities handled the transaction for HH Capital Ltd and Femi Otedola respectively.

The stock price of added N0.36 Week-on-Week (WoW) to close at N2.81 per share from N2.45 per share it opened for trading.