Fakoyejo OlalekanTransnational Corporation (Transcorp) Plc Chairman, Tony Elumelu, has disclosed that the company will conduct a public initial offering for its subsidiary, Transcorp Power, within the next five years.
Elumelu said while rumours have projected that Transcorp Power could list anytime soon, he said it is not currently on the short-term plans of Transcorp plc.
Join our WhatsApp ChannelHe made this known during an interview with Arise TV on Thursday. He said the rumour has been fueled by the listing of competing firms.
Recall that Geregu Power, a company largely owned by Femi Otedola, was listed on the Nigerian Exchange Limited (NGX) last year.
Elumelu said the plan is to grow more before considering listing on the Nigerian stock exchange, “No (we are not listing), I hear that rumor from time to time, especially after some competing institutions were listed on the Exchange. No, we are long-term players, we want to grow more and significant value in the power sector.” Elumelu said.
He said before Transcorp Power can be listed, the company hopes transmission lines would have been fixed and the gas supply to the power sector would have improved as well.
Elumelu said: “We are looking at about 5 years from now to list Transcorp Power because we believe the transmission lines would have been fixed and the gas supply to the power sector would have improved significantly.”
Meanwhile, Prime Business Africa reported earlier that Elumelu has increased his controlling stake in Transcorp Plc from 2.06 per cent stake to 25.2 per cent.
The chairman paid about N23 billion to acquire 9.69 billion shares of Transcorp a week after the company confirmed Otedola acquired 2.24 billion shares or 5.52 per cent stake.
Elumelu had lost his position as the single majority shareholder in Transcorp (which made him the chairman of the company) to Otedola last week.
However, he reclaimed the position with the acquisition of N23 billion worth of shares this week.
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