Femi Otedola, a multibillionaire businessman, sold his shares of Transcorp Plc.
Over the course of several carefully planned purchases that went almost unnoticed until the acquisition was announced, Otedola had amassed a 6% stake in Transcorp.
According to insiders, the wealthy investor and Elumelu have agreed to part ways.
Early on Thursday, both parties started discussions regarding a potential break.
It is acknowledged that both parties will keep looking into other ways to work together given their shared interest in the power sector.
According to sources, Elumelu acquired Otedola at a premium estimated to be between 4 and 6 times the share’s current market value.
However, the transaction will soon be announced on the Nigerian Exchange.
The acquisition of 5.52% of Transcorp, which made Otedola the second-biggest shareholder of the business and the largest individual shareholder, was disclosed by him in early April.
He increased his ownership of the company to a maximum of 6.3% at that point, sparking a stock market battle.
The purchase instantly set off a rise in the stock’s share price, which doubled in less than two weeks.
Elumelu consolidated his holdings in reaction to Otedola’s acquisition, raising his indirect ownership stake to roughly 25.58%, which he declared on April 26th, 2023.
The purchase of new shares by HH Capital Limited was disclosed by Transcorp to the Nigerian Exchange Limited (NGX) and the investing public on Thursday, April 27.
HH Capital Limited increased its shareholdings in Transcorp to 9,991,173,177 units, or 25.58% of the total shares of the company, by purchasing 9,697,189,984 units of shares.
This sped up a decision made by all sides to negotiate Otedola’s exit because he was preparing to run for a board position.
One of the most intriguing corporate transactions of 2023 comes to an abrupt end with the deal.
However, the transaction will soon be announced on the Nigerian Exchange.
