Fakoyejo OlalekanThe Chairman of Geregu Power, Femi Otedola, has revealed that he offered to buy Transnational Corporation (Transcorp) Plc for N250 billion.
Otedola, on Tuesday, said his offer was rejected despite planning to help unlock Transcorp’s full potential and create value for shareholders of the company.
Join our WhatsApp ChannelRecall that Prime Business Africa reported that Otedola acquired a 6 per cent stake in Transcorp Plc in a bid to take control of the firm from the majority single investor, Tony Elumelu, who also doubles as the majority shareholder of United Bank for Africa (UBA), the company that started the rift between the two billionaires.
Following his acquisition, Elumelu also bought more Transcorp shares to increase his stake from 2.05 per cent to over 25 per cent controlling stake.
This gave him control of Transcorp again, resulting in Otedola selling his shares to Elumelu, to avoid two captains in a ship.
According to Otedola, he had plans to increase Transcorp’s market capitalisation or valuation to N2 trillion from the current N40 billion.
“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,” Otedola wrote.
In addition, Otedola said his offer to buy Transcorp is not due to his rift with Elumelu, but of the best intentions for the company.
The statement reads further: “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.
“My message to Transcorp Plc and its shareholders is this: I remain committed to the growth and success of Nigerian businesses, and I will always be looking for ways to create value for all stakeholders. Stakeholders are unfortunately always shortchanged by getting stipends while the owners and managers of the business live a jet-set lifestyle, which is detrimental to the stakeholders. Thank you for the opportunity to engage in this exciting chapter of Transcorp’s history.”
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