Transcorp ‘Unaware’ Of Otedola’s 5.52% Stake As Shares Records 10% Growth

Transnational Corporation Plc has said it has not yet received formal notification that business mogul and billionaire, Femi Otedola, has acquired a 5.52 per cent stake in the publicly traded diversified conglomerate.

This reaction comes as Transcorp’s share price, gained a maximum of 10% or N5.69 billion at the close of the trading session.

The company’s stock price rose to N1.54 per share from N1.40 it traded the previous day, representing a growth of 10% or N5.69 billion.

It was gathered that Transcorp closed the trading day with N62.597 billion in market capitalization as against N56.907 billion the previous day.

Meanwhile the President & Group CEO, Transcorp Group, Dr. Owen Omogiafo in a signed statement on the Nigerian Exchange Group, NGX, noted that while the Company has not yet received formal notification of any relevant interest in its shares, Transcorp welcomes every new shareholder acquiring shares in the Company.

“We welcome this expression of confidence in the leadership and management of Transcorp, as we continue our unwavering commitment to superior stakeholders’ returns, anchored in our ideology of Africapitalism. We remain resolute in executing our Group’s strategy of making strategic investments in key sectors within the Nigerian economy, our transformation agenda and our ability to contribute positively towards building prosperity,” she said.

The financial results of the group for the year ended December 31, 2022, showed that total revenue rose by 21%, from N111.2billion in December 2021 to N134.7billion in the period under review. Transcorp’s share price has risen by 23.9% year to date.

Recall that Otedola recently acquired about 2.245 billion shares (5.52%) of Transcorp in a transaction consummated between an entity owned by the billionaire and the Asset Management Corporation of Nigeria.

Transcorp is currently controlled by another billionaire, Tony Elumelu, who took over control of the company in 2012.

Elumelu, who chairs Transcorps, holds 273.1 million shares directly in the company, 274 million indirectly through Heirs Holdings Limited and 294 million shares indirectly through HH Capital Limited.

According to reports, while about 1,695 investors own about 89% of the company’s shares, only UBA Nominees own about 9.25% of the company as of December 2022. No other shareholder holds above 5%, it was gathered.

Transcorp is one of Nigeria’s leading Conglomerates with investments in the Hospitality, Power, and Oil & Gas sectors.