Chairman of Geregu Plc, Femi Otedola has sold his 6.3% stake in Transnational Corporation Plc (Transcorp) to its chairman, Tony Elumelu.
The group chairman of Transcorp, Elumelu, purchased Otedola’s shares on Thursday using Transcorp’s closing price at an options contract due to be paid in a series of instalments over time.
Fedredsnews earlier reported that Otedola had acquired more than 6% stake in Transcorp over a series of carefully orchestrated purchases going almost unnoticed until the acquisition was announced.
The latest development is 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 per cent.
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.”
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.
An announcement of the transaction is however imminent on the Nigerian Exchange.
Confirmed sources from Elumelu’s camp explained transaction closed at the prevailing market price of Transcorp Plc as of April 27th, 2022. Sources from Otedola’s camp however opined the billionaire exited at a premium to his average cost, pocketing a profit.