Popular Nigerian billionaire Femi Otedola has sold his 6.3% stake in Transnational Corporation Plc (Transcorp) to its chairman, Tony Elumelu, Africa Today News, New York has gathered.
The group chairman of Transcorp, Elumelu, purchased Otedola’s shares yesterday using Transcorp’s closing price at an options contract due to be paid in a series of instalments over time.
It was reported that both parties believed reaching an agreement was in their best interests. The negotiations leading up to the agreement were said to be brief but friendly as Otedola and Elumelu openly committed to collaborating to advance Transcorp’s objectives.
Transcorp, thereafter, announced that HH Capital Limited, a special-purpose vehicle owned by Elumelu, increased its stake to 25.58 percent.
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Transcorp said: ‘In compliance with Chapter 17, Rule 17.13 of the NGX Issuers Rules, Transnational Corporation Plc informs the NGX and the investing public of the below new acquisition of shares in the company. With this new acquisition, HH Capital Limited now holds 9,991,173,177 units, representing 25.58 per cent of the company’s total shares.’
Africa Today News, New York gathered from very credible sources that Mr Otedola’s move to take the peak spot in the conglomerate’s ownership upset the Transcorp chair, prompting him to open talks. He eventually agreed to compensate the businessman with millions of dollars, sources said.
‘The Company welcomes this expression of confidence in its leadership and management,’ Transcorp said in a recent note to the NGX, referring to Mr. Otedola’s move.
Mr Otedola holds the most shares in FBN Holdings, and the majority-own Geregu Power, which he listed last year.
Recall that on Thursday, Transcorp announced its chairman has upped his interest to 25.9 percent or 10.5 billion shares, conferring more than a fourth of the corporation’s voting rights on him as the only principal shareholder.