'We’re brothers' - Drama as Tony Elumelu spends N23bn to take back Transcorp from Otedola

In a dramatic turn of events, Tony Elumelu has taken back control of Transnational Corporation (Transcorp), a leading Nigerian conglomerate, from Femi Otedola, another billionaire entrepreneur.

As reported by Legit.ng, Otedola bought 2.24 billion shares in Transcorp, which handed him a 5.52% stake in the company and control.

The acquisition raised eyebrows, as Elumelu had controlled Transcorp but only owned a 2.06% stake.

In response, Elumelu, through his investment company, HH Capital Limited, which previously held 293.98 million shares, acquired another 9.69 billion shares worth N23 billion.

This was disclosed on Thursday, April 27, in a corporate document shared with shareholders and the capital market authority, Nigerian Exchange Limited (NGX).

Part of the document reads: “With this new acquisition, HH Capital Limited now holds a total of 9,991,173,177 units, representing 25.58% of the Company’s total shares."

Elumelu also owns direct shares of 273.10 million and indirect shares of 273.54 million (through Heirs Holdings Limited) in Transcorp Plc.

The acquisition through HH Capital Limited has now increased his total shares in Transcorp to 10.26 billion, from 840.63 million, almost 30% controlling power, Dailytrust reports.

This is higher than Otedola's 5.52% shareholdings. An analyst who spoke with Legit.ng, revealed that Otedola might have raised his shareholdings in Transcorp to 7%.

The chess moves by two of Nigeria's most respected investors have become so dramatic that social media has described it as a war.

However, speaking to AriseTV, Elumelu brushed aside any rift, noting that Otedola is a brother and a friend. He said "We at Transcorp welcome the investment of my brother Otedola.

It is a testament that what we are doing is right and the company's potential. Any supposed rift between us is false and impossible, as he has been a brother, friend, and true Nigerian investor."

"On my Instagram, I follow only two people, my wife, and Otedola. This demonstrates how much I value him." Otedola, on the other hand, took a screenshot of Elumelu's interview and posted it on his Instagram page, which has 1.5 million followers.