After surpassing Tony Elumelu as the majority shareholder in Geregu Power Plc, Nigerian billionaire investor Femi Otedola has acquired additional shares in the company. According to the company’s records as of 2022, Otedola already controls 95.56% of the company’s shares, equivalent to 2,388,922,308 shares. Geregu’s free float stands at 111,073,957 representing 4.44% as of December 2022.
In a move to increase his shareholding, Otedola purchased 2,823,092 additional shares in the company, costing him N817,297,844.4. Specifically, he spent N541,687,500 to purchase 1,875,000 shares at N288.9 per share on May 8, adding another 948,092 units at N290.7 per share, amounting to N275,610,344.4.
Otedola’s brother, Paul Olurotimi Otedola, also invested N86,670,000 to acquire 300,000 units of Geregu shares at N288.9 per unit, bringing the total amount spent on the deals to N903,967,844.4.
On Tuesday, Otedola accused Elumelu, whom he described as his friend, of backstabbing in a very long statement.
In a press statement, Otedola said “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 disagreement between Otedola and Elumelu began when Otedola purchased a substantial 6.3% stake of 2.6 billion shares in Transcorp, making him the company’s highest individual shareholder. This move prompted a response from Elumelu, who utilized his Special Purpose Vehicle (SPV), HH Capital Limited, to acquire an astounding 9,697,189,984 units of shares, increasing his total holdings in Transcorp to 9,991,173,177 units, equivalent to 25.58% of the company’s total shares.
Following this, negotiations ensued between both parties, resulting in a significant deal that saw Otedola exit from the company.
