After Earning Billions From Elumelu, Otedola Sells 2.8 Million Shares In Geregu To Brother

Nigerian billionaire investor, Femi Otedola, has sold shares in his Geregu Power Plc, after a surprise exit from Transnational Corporation Plc a few days after he surpassed Tony Elumelu to become the majority shareholder.

Otedola controls 95.56 per cent or 2,388,922,308 shares in Geregu making him the majority shareholder, according to the company’s books as of 2022.

Geregu’s free float as of December 2022 was 111,073,957 representing 4.44 per cent.

In a surprise move, he reduced his shareholding by 2,823,092 shares worth N817,297,844.4.

Details of the deal show Otedola received N541,687,500 from the sale of 1,875,000 shares in his company at N288.9 per share on May 8. He sold another 948,092 units at N290.7 per share amounting to N275,610,344.4.

Paul Olurotimi Otedola, brother to the majority shareholder, Otedola bought 300,000 units of the shares at the price of N288.9 per unit. The amount spent was N86,670,000.

The transaction detail shows that Olurotimi made the acquisition on May 8, 2023. Both brothers spent N903,967,844.4 on the deals.

Otedola had released a lengthy statement on Tuesday accusing Elumelu who he described as his friend of backstabbing.

Otedola said in a statement that “I offered to buy Transcorp Plc for N250 billion, but unfortunately, my offer was rejected. My goal was to maximize the company’s potential as a Nigerian conglomerate with a market cap of at least N2 trillion instead of the current N40 billion, but it seems some shareholders have a different vision.

“As a businessman, I believe in healthy competition and market dynamics. Two captains cannot man a ship, and I respect the majority shareholder’s decision to buy me out. This is the nature of the game.

“But let me be clear: my offer was made with the best intentions for Transcorp Plc and its shareholders. I saw an opportunity to unlock the company’s full potential and create value for everyone involved.

“It’s important for investors to understand that free entry and free exit are crucial to healthy markets. The scramble for shares after my acquisition is a testament to the value that Transcorp Plc can offer, and I hope the company continues to thrive under new leadership.”

The log ahead started after Otedola was forced out of Transcorp when he bought a whooping 2.6bn shares or 6.3 per cent of Transcorp to became the highest individual shareholder.

But in reaction, Elumelu through HH Capital Limited, a Special Purpose Vehicle (SPV) owned by him had acquired 9,697,189,984 units of shares, bringing its total holdings in Transcorp Incorporated to 9,991,173,177 units, 9,991,173,177 units.

It represents 25.58 per cent of the Company’s total shares.

Both parties entered negotiations for Otedola to exit after a landmark deal.

Editor’s Note: This report has been corrected to reflect that Femi Otedola sold 2,823,092 shares, not acquired.