Otedola had acquired a 6% stake in Transcorp over a series of carefully orchestrated purchases going almost unnoticed until the acquisition was announced. Nairametrics first announced the acquisition.
Reliable sources with knowledge of the transaction inform Nairametrics that the billionaire investor reached a deal with Elumelu to exit the company. Both parties entered negotiations about a possible exit in the early hours of Thursday after both had declared willingness to work together in an apparent bromance.
The negotiations leading to the agreement were said to be swift yet cordial as both parties opined it was in their mutual best interest to part ways. Elemelu and Otedola publicly agreed to work together to promote Transcorp’s interests.
Sources also indicate the attention drawn by the jostle for shareholding was a distraction for the company thus paving the way for a decision to part ways. It is understood that both parties will continue to explore other forms of collaboration over their common interest in the power sector.
Sources with knowledge of the deal reach between the two billionaires indicate Elumelu bought Otedola out at a premium said to be between 4 to 6x the current market price of the share. Nairametrics could not immediately independently verify the transaction terms. An announcement of the transaction is however imminent on the Nigerian Exchange.
Mr Otedola announced in early April that he had acquired 5.05% of Transcorp making him the second-largest shareholder of the company. The purchase immediately triggered a rally for the share price of the stock, doubling in under two weeks.
In response to Mr. Otedola’s acquisition, Elemelu consolidated his holdings, increasing his ownership stake to about 25% which he announced on April 26th, 2023.
