Mr Tony Elumelu, Chairman of Transcorp Plc, has played down reports that he is threatened by Mr Femi Otedola’s investment in the company.
It was reported two weeks ago that Mr Otedola had purchased a 5.52 percent stake in Transcorp, making him the conglomerate’s largest single individual shareholder. With a 9.26 percent stake, he is only second to UBA Nominees Limited.
His purchase of the company’s stock later fueled speculation that the businessman, who owns Geregu Power, was planning to take over Transcorp, particularly its power subsidiary.
Mr. Otedola is no stranger to investing in businesses. He invested in First Bank, causing a leadership squabble that drew the attention of the Central Bank of Nigeria (CBN).
Mr Elumelu told Arise TV on Wednesday that Mr Otedola is still his friend and “brother,” and that he is pleased with his interest in the organization he purchased in 2012.
I am happy that Femi Odetola is investing locally, and he should be commended for that, and I also welcome him for that,” Mr Elumelu, who doubles as the chairman of UBA Group Plc, said in the interview monitored by ENTREPRENEURNG.
When friends and investing public invest in a public company like this, it is a validation and tells you they believe in your story, vision, management, leadership and competence,” said, adding that, “I like my friend (Otedola) coming on board, and I look forward to working with him to take Transcorp to greater heights.
Mr Elumelu stated that, “About 10 years ago, before we took over Transcorp, people were not interested [in the company]. People lost confidence in the company. Today, under our leadership, Transcorp has consistently paid dividends in the last five years. There is a capital appreciation for the company.”
He emphasised that the coming of the “man I admire” to the board of Transcorp would be to the advantage of “shareholders” as the company’s stocks will become “investors’ toast.”
