Femi Otedola, billionaire
businessman, on Tuesday morning, went down memory lane on his relationship with
Tony Elumelu and his plans for Transcorp before he opted out because his bid
was rejected.
Otedola noted that he offered to
acquire Transcorp Plc for N250 billion and take the company’s market
capitalisation to N2 trillion but his bid was rejected.
Recently, Otedola acquired a 5.52
percent stake in Transcorp Plc to become the second largest shareholder of the
company, but then sold out his entire holding to Tony Elumelu, the chairman of
the group.
Elumelu had said he welcomed Otedola’s investment in the company and looked forward to working with him, adding: “He’s my very good friend. In fact, I only follow two people on Instagram, my wife and Femi Otedola… that shows the level of friendship we have.”
However, In a press statement by
Otedola, he spoke for the first time on the events surrounding his bid to take
over the company.
“In 2005, while Tony was the
Managing Director of Standard Trust Bank he approached me to get funds to
acquire UBA. I enthusiastically gave him $20million, which was N2 billion at
that time to buy the necessary shares in UBA for the acquisition. After a short
period of time the share price moved up and I decided it is was a good moment
to sell and get out of the bank. However, Tony appealed to me to hold on to the
shares as he was convinced that there were future prospects – so I kept the
shares,” Otedelo said.
“I became Chairman of Transcorp
Hotel in 2007 with a shareholding of 5% and unknowingly Tony gradually started
buying shares quietly.
“By the following year in 2008 I
went bankrupt in Nigeria. Tony proceeded to take my shares in UBA to service
the interest on my loans and he also took over my shares in Africa Finance
Corporation, where I was the largest shareholder.
“Shortly after, Albert Okumagba
informed me that an American firm wanted to acquire my shares in Transcorp,
which I then agreed to sell. However, this supposed American firm turned out to
be Tony Elumelu. The revelation of this prompted me to resign as Chairman of
the hotel.
“Years later in 2012 Tony said he
wanted to see me so we met in my office where I had previously had a meeting
with foreign investors who had not yet departed the premises. Curious to know,
he asked what sort of meeting I had had and I disclosed that I wanted to go
into the power business, specifically Ughelli Power Plant. Tony quietly went
ahead to bid for Ughelli and he outbidded me by offering to buy the plant for
$300million.
“And as a some would say: the
rest is history.
“Fast forward to the present…
“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.
“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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