The majority shareholder of Geregu Power Plc, Femi Otedola, has sold over 2.8 million units of his shares in the power generation company, after a surprise exit from Transnational Corporation Plc a few days after he surpassed Tony Elumelu to become the majority shareholder.
This development was disclosed in a corporate filing on the Nigerian Exchange Limited issued on Wednesday, May 10.
According to the corporate filing, Otedola offloaded the shares in transactions that took place on Monday and Tuesday.
The billionaire sold a tranche of 1,875,000 units of Geregu shares at N288.9 and another 948,092 units at N290.7 in deals worth N817.297 million.
Meanwhile, his brother, Paul Otedola, increased his stakes in Geregu Power through the acquisition of 300,000 shares.
Findings showed Paul Otedola purchased the shares at a rate of N288.9 per share, bringing the total to N86.67 million.
Suggested Read: Why Real Estate Investors Partner With ADRON HOMES
Paul Otedola, in February 2023, purchased 3.6 million units of shares at N219 per unit and 100,000 shares at N207.9 per unit in deals worth N809.2 million.
Similarly, another brother to Otedola, Ayokunle Michael, also bought four million shares at N219 per unit for N876 million on February 2.
It is pertinent to note that Otedola recently acquired a 5.52 per cent stake in Transcorp Plc to become the second largest shareholder of the company.
However, he sold out his entire holding to Tony Elumelu, the group chairman, a few days later.
Otedola, on May 9, noted that he offered to acquire Transcorp Plc for N250 billion and take the company’s market capitalisation to N2 trillion. He added that his bid was rejected.
Otedola had released a lengthy statement on Tuesday accusing Elumelu, whom 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. However, it seems some shareholders have a different vision.
“As a businessman, I believe in healthy competition and market dynamics. Two captains cannot manage 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 whopping 2.6bn shares or 6.3 per cent of Transcorp to become the company’s 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.
It represents 25.58 per cent of the company’s total shares.
Both parties entered negotiations for Otedola to exit after a landmark deal.
Seunmanuel Faleye is a brand and communications strategist. He is a covert writer and an overt creative head. He publishes Apple's Bite International Magazine.