Otedola exits stake in Transcorp Plc in landmark deal

Femi Otedola, a billionaire and serial investor, has exited his 6% stake in Transcorp Plc after reaching a deal with Elumelu to exit the company.

Femi Otedola, a multibillionaire investor, has sold his shares in Transcorp Plc, Nairametrics can reveal.

Otedola had amassed a 6% stake in Transcorp through a string of well-planned purchases that went mostly unreported until the acquisition was made public. The deal was initially announced by Nairametrics.

Reliable sources with knowledge of the situation tell Nairametrics that the wealthy investor and Elumelu have agreed to part ways.

The choice effectively prevents Transcorp from becoming involved in a questionable greenmail situation.

Early on Thursday morning, after both sides had expressed a desire to cooperate in an apparent bromance, conversations regarding a potential breakup began.

Both parties believed that reaching an agreement was in their best interests to do so, so the negotiations leading up to it were said to be brief but friendly. Otedola and Elemelu openly committed to collaborating to advance Transcorp’s objectives.

According to sources, the corporation was distracted by the attention the fight for ownership of the shares attracted, which paved the way for the decision to part ways. It is acknowledged that both parties will keep looking into other ways to work together given their shared interest in the power sector.

According to sources familiar with the two billionaires’ agreement, Elumelu acquired Otedola at a premium that ranged from 4 to 6 times the share’s current market value.

Early in April, Mr. Otedola revealed that he had purchased 5.05% of Transcorp, making him the company’s second-largest shareholder. The purchase instantly set off a rise in the stock’s share price, which doubled in less than two weeks.

Elemelu consolidated his holdings in reaction to Mr. Otedola’s acquisition, raising his ownership stake to around 25%, which he revealed on April 26th, 2023.

Femi Otedola, a billionaire investor, became Transcorp’s second-largest stakeholder on April 12th after purchasing 5.52% of the company’s shares.

After acquiring over 2 billion shares of the corporation covertly over several months, the billionaire ultimately disclosed ownership of the stock. He increased his ownership of the company to a maximum of 6.3% at that point, sparking a stock market battle.