Transcorp Faults Femi Otedola’s 5.52% Shares Acquisition

The management of Transnational Corporation Plc, yesterday faulted media reports that billionaire investor, Mr. Femi Otedola, has acquired 5.52 per cent stake in the publicly traded diversified conglomerate quoted on the Nigerian Exchange Limited (NGX).

A top stockbroker had disclosed to press that the billionaire now owns about 2.245 billion shares, representing 5.52per cent of the company, making him the largest individual shareholder of the group.

However, the President/ Group Chief Executive Officer, Transcorp Group, Owen Omogiafo, in a signed statement on the NGX noted that the company had not yet received formal notification of any relevant interest in its shares, stressing that Nigeria’s largest listed conglomerate, known for its broad and diversified shareholder base, welcomed every new shareholder acquiring shares in the company.

Omogiafo noted that the management of Transcorp Corporation welcomed the expression of confidence in the leadership and management of the Group, as they continued unwavering commitment to superior stakeholders ‘returns, anchored in the ideology of Africaptalism.

“We remain resolute in executing our Group’s strategy of making strategic investments in key sectors within the Nigerian economy, our transformation agenda and our ability to contribute positively towards building prosperity,” the statement added.

The audited result and accounts of Transcorp for period ended December 31, 2022, revealed that Mr. Tony Elumelu, who is the chairman of Transcorp owned 273,104,041 issued share capital in the diversified conglomerate.

He also held 293,983,193 shares indirectly through HH Capital Limited and 273,545,722 shares are held indirectly through Heirs Holdings Limited.

Dr. Stanley Lawson, a Non-Executive Director of Transcrop Corporation owned 122,790,102 direct issued share capital, while Omogiafo, the President had 12,634,188 interest in the diversified conglomerate.

The only other shareholder with over five per cent ownership of the company is UBA Nominees which owns about 9.25per cent of the company as of 2022 from 9.26 per cent reported in 2021.

“As at December 31, 2022, only UBA Nominees Limited-Trading, held five per cent or more of the issued and fully paid shares of 50 kobo of the Company,” according to the 2022 audited result and accounts posted on the NGX.

No other shareholder held above five per cent according to records. The company also has about 39.65 billion out of its 40.65 billion outstanding shares on a free float. In fact, 1,695 people own about 89 per cent of the company’s shares.

Transcorp is currently chaired by billionaire investor, Elumelu who took over control of the company in 2012. Since then the company has gone on to acquire a power generation company and branched into the oil and gas sectors of the economy.

Otedola also acquired significant control of FBN Holdings early last year when he announced he had acquired shareholdings above the five per cent threshold.

That also immediately triggered a bidding war for the stock. However, unlike FBN Holdings, Transcorp has a single majority shareholder with control of the company.

Otedola also owns close to 90per cent stake in Geregu Power Plc which it listed on the Exchange last year. It is unclear if the latest acquisition is aimed at doubling down his investment in the power sector.

The stock price of Transcorp Corporation leads the top gainer on the NGX yesterday after gaining 10 per cent to close at N1.54 per share from N1.40 it opened for trading.