Nigerian billionaire businessman, Femi Otedola, has opened up on his long-time enterprise relationship with Tony Elumelu, Transcorp Plc Chairman, alleging that the founding father of Tony Elumelu Foundation betrayed him on completely different events.
Otedola made the revelation whereas talking on his transfer to purchase Transcorp, a conglomerate whose 5.5 per cent shares he just lately acquired.
Days after Otedola’s acquisition, Elumelu elevated his personal shares in the identical firm from 2.07 to over 25 per cent.
Otedola mentioned he had needed to purchase the corporate with a view to unlocking its full potential and creating values for the shareholders, however his supply was rejected.
“I offered to buy Transcorp Plc for N250 billion, but unfortunately, my offer was rejected,” he mentioned in a press release launched to Premium Times.
In the assertion, Otedola recalled how he “enthusiastically gave him (Mr Elumelu) $ 20 million, which was N2 billion at that time” to purchase the mandatory shares for the acquisition of UBA in 2005, alleging that Elumelu betrayed him in the long run.
The assertion learn partly, “In 2005, whereas Tony was the Managing Director of Standard Trust Bank he approached me to get funds to amass UBA. I enthusiastically gave him $ 20 million, which was N2 billion at the moment to purchase the mandatory shares in UBA for the acquisition. After a brief time period the share worth moved up and I made a decision it was a great second to promote and get out of the financial institution. However, Tony appealed to me to carry on to the shares as he was satisfied that there have been future prospects – so I saved the shares.
“I turned Chairman of Transcorp Hotel in 2007 with a shareholding of 5% and unknowingly Tony progressively began shopping for shares quietly. By the next yr in 2008 I went bankrupt in Nigeria. Tony proceeded to take my shares in UBA to service the curiosity on my loans and he additionally took over my shares in Africa Finance Corporation, the place I used to be the biggest shareholder.
“Shortly after, Albert Okumagba informed me that an American firm wanted to acquire my shares in Transcorp, which I then agreed to sell. However, this supposed American firm turned out to be Tony Elumelu. The revelation of this prompted me to resign as Chairman of the hotel.”
Otedola mentioned years later in 2012, he instructed Elumelu about his curiosity in Ughelli Power Plant and the Transcorp chair “quietly went ahead” to outbid him within the acquisition of the plant.
“Tony said he wanted to see me so we met in my office where I had previously had a meeting with foreign investors who had not yet departed the premises. Curious to know, he asked what sort of meeting I had had and I disclosed that I wanted to go into the power business, specifically Ughelli Power Plant. Tony quietly went ahead to bid for Ughelli and he outbidded me by offering to buy the plant for $300million,” he added.
Otedola mentioned his objective was to maximise Transcorp’s potential as a Nigerian conglomerate with a market cap of not less than N2 trillion as a substitute of the present N40 billion, but it surely appears some shareholders have a unique imaginative and prescient.
He mentioned,
“As a businessman, I imagine in wholesome competitors and market dynamics. Two captains can not man a ship, and I respect the bulk shareholder’s resolution to purchase me out. This is the character of the sport.
“But let me be clear: my supply was made with the most effective intentions for Transcorp Plc and its shareholders. I noticed a possibility to unlock the corporate’s full potential and create worth for everybody concerned.
“It’s necessary for buyers to grasp that free entry and free exit are essential to wholesome markets. The scramble for shares after my acquisition is a testomony to the worth that Transcorp Plc can supply, and I hope the corporate continues to thrive beneath new management.
“My message to Transcorp Plc and its shareholders is this: I remain committed to the growth and success of Nigerian businesses, and I will always be looking for ways to create value for all stakeholders. Stakeholders are unfortunately always shortchanged by getting stipends while the owners and managers of the business live a jet-set lifestyle, which is detrimental to the stakeholders. Thank you for the opportunity to engage in this exciting chapter of Transcorp’s history.”
Daily Trust
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