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Nigerian businessman Femi Otedola liquidated his newly acquired stake Nigerian Transnational Corporation (Transcorp) chairman Tony Elumelu, sources told PREMIUM TIMES on Friday, tied the majority ownership of the group.
The billionaire sold a large 6.3 per cent stake to Mr Elumelu.
Earlier, a few days after acquiring a large stake, Mr. Elumelu increased his interest from 2.07 percent to 25.9 percent.
Transcorp shares, which had gained 173 percent year-to-date, fell 9.9 percent on the Lagos-based Nigerian Exchange (NGX).
Sources privy to the matter told PREMIUM TIMES that Mr. Otedola’s move to take over the ownership stake in the conglomerate unsettled the Transcorp chair, prompting him to open talks. He eventually agreed to pay the businessman millions of dollars, sources said.
“The company welcomes this expression of confidence in its leadership and management,” Transcorp said in a recent statement to NGX, referring to Otedola’s move.
Mr Otedola owns the majority of shares in FBN Holdings, which last year listed a majority stake in Geregu Power.
ALSO READ: Otedola increases Transcorp stake to 6.3% with additional share purchase
On Thursday, Transcorp announced that its chairman had increased his interest to 25.9 percent, or 10.5 billion shares, giving him more than a quarter of the corporation’s voting rights as the sole major shareholder.
UBA Holdings, which is next in the hierarchy, has less than 10 percent.
Transcorp has three power plants that account for 2,000 megawatts or more than 40 percent of Nigeria’s total power generation capacity. The conglomerate’s total assets stood at N464.5 billion at the end of March, compared to N442.7 billion at the end of last year, according to its first quarter earnings report.
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