Billionaire businessman Femi Otedola has sold his stake in Transcorp just 15 days after acquiring shares in the company.
According to multiple sources, Elumelu allegedly acquired the shares from Otedola at the cost of about N32 billion.
This indicates that Elumelu bought out Otedola at 300 per cent above Transcorp’s market value as of Thursday. This means each share was bought around N12.5 kobo, compared to Thursday’s closing price of N3.12 kobo per share.
Both parties entered negotiations about a possible exit in the early hours of Thursday after both had declared willingness to work together in an apparent bromance.
The negotiations leading to the agreement were said to be swift yet cordial as both parties opined it was in their mutual best interest to part ways. Elemelu and Otedola publicly agreed to work together to promote Transcorp’s interests.
Sources also indicate the attention drawn by the jostle for shareholding was a distraction for the company thus paving the way for a decision to part ways. It is understood that both parties will continue to explore other forms of collaboration over their common interest in the power sector.
Mr Otedola announced in early April that he had acquired 5.05% 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 Mr. Otedola’s acquisition, Elemelu consolidated his holdings, increasing his ownership stake to about 25% which he announced on April 26th, 2023.
