…By Jack Sylva for TDPel Media. Billionaire businessman Femi Otedola claims that his offer to acquire Transcorp Plc for N250 billion was rejected.
Otedola had recently acquired a 5.52% stake in Transcorp Plc, making him the second-largest shareholder, before selling his entire stake to Tony Elumelu, the group’s chairman.
Background:
Otedola’s press statement details the events that led to his bid to take over the company.
In 2005, Tony Elumelu, then Managing Director of Standard Trust Bank, had asked Otedola for funds to acquire UBA.
Otedola gave him $20 million, equivalent to N2 billion at that time, to buy the necessary shares in UBA for the acquisition.
Later, when the share price moved up, Otedola decided to sell the shares, but Elumelu convinced him to hold on to the shares as he saw future prospects.
Elumelu takes over Otedola’s shares:
Otedola became the Chairman of Transcorp Hotel in 2007 with a 5% shareholding, and Tony gradually started buying shares.
By 2008, Otedola had gone bankrupt in Nigeria, and Elumelu took his shares in UBA and Africa Finance Corporation to service the interest on his loans.
An American firm had expressed an interest in acquiring Otedola’s shares in Transcorp, which he agreed to sell.
However, the supposed American firm turned out to be Tony Elumelu, prompting Otedola to resign as Chairman of the hotel.
Otedola outbid by Elumelu:
Later in 2012, when Otedola expressed interest in the power business, specifically Ughelli Power Plant, Tony quietly went ahead to bid for Ughelli and outbid Otedola by offering to buy the plant for $300 million.
Offer to acquire Transcorp Plc rejected:
Otedola’s offer to buy Transcorp Plc for N250 billion was rejected.
He believes that his offer could have unlocked the company’s full potential and created value for all stakeholders.
He respects the majority shareholder’s decision to buy him out and believes that healthy competition and market dynamics are essential for investors.
Otedola remains committed to the growth and success of Nigerian businesses and will continue to look for ways to create value for all stakeholders.
Conclusion:
The allegations levelled against Tony Elumelu are yet to be officially addressed by him.
This controversy highlights the cut-throat nature of business and competition among Nigeria’s billionaires.
Otedola’s commitment to the growth and success of Nigerian businesses is a positive sign and could inspire other business leaders to invest in the country’s economy.