Femi Otedola, a rich Nigerian businessman, wants to cooperate with Transcorp’s board and management to achieve the company’s incredible potential.
Nairametrics saw Otedola’s Instagram post announcing the purchase of a 5.52% share in Transcorp Plc. On April 12, 2023, Nairametrics exclusively announced the 5.52% ownership.
The acquisition makes the billionaire the company’s second-largest stakeholder. UB A nominees own 9.26% of the firm.
“After this transaction, I look forward to working with Transcorp’s board and management to realise the corporation’s extraordinary future potential,” he stated.
Transnational Corporation plc verified Otedola’s purchase of 2.245 billion shares.
Transcorp notified the Nigerian Exchange Limited (NGX) and the investing public that Otedola purchased the 5.52% shares in a press statement signed by Funmi Olofintuyi, Company Secretary (Ag.).
“As stated in our earlier statement, the company welcomes this show of confidence in its leadership and management as we maintain our steadfast commitment to superior stakeholders’ returns, rooted in Africapitalism. Feel confident of our commitment to executing our group’s plan of strategic investments in critical areas of the Nigerian economy, our transformation agenda, and our capacity to positively contribute to building prosperity for everyone, the statement said.
What does this mean? The response confirms Mr. Otedola’s purchase of 5.52%.
Transcorp management and Mr. Otedola have begun investigating shared interests for the firm, according to sources. Mr. Otedola is said to value Transcorp and be open to collaborating to build it. Transcorp’s press release was courteous because sources say they’re unfazed by the takeover.
Analysts told Nairametrics that Mr. Elumelu and Mr. Otedola’s influence and interest in the Nigerian economy may prevent a shareholder struggle like the FBN Holding takeover. Both sides’ calm acquisition management may also be due to this.
There are also indications that both sides may compete for even greater ownership of the corporation, which might further damage the share price.
Bulls after Transcorp: Since Nairametrics disclosed the purchase, the company’s shares have gone from N1.4 to N2.45 per share, gaining 75% in a week.
When investors anticipate a battle between Nigeria’s two most powerful businessmen, the stock dominates volumes and prices climb. Since investors continue to ascribe larger multiples to Transcorp’s earnings after the purchase, Nairametrics believes roughly 1.2 billion Transcorp shares crossed this week.
Transcorp Results: Transcorp’s full-year 2022 financial figures show considerable gains in its primary income streams.
N28.3 billion to N16.8 billion were the group’s earnings after tax.
Nonetheless, the company’s profit was N7.2 billion, up from N3.2 billion a year earlier.
Transcorp also announced its first quarter results early, revealing that group earnings before tax plunged 50.8% to N2.8 billion. From N1.24 billion to N350 million, HoldCo’s earnings fell.
