Nigerian businessman and philanthropist, Femi Otedola, said his offer to acquire Transnational Corporations (Transcorp) Plc for N250 billion and take the company’s market capitalisation to N2 trillion was rejected.
Recently, Otedola acquired a 5.52 percent stake in Transcorp to become the second largest shareholder of the company, but then sold out his entire holding to Tony Elumelu, the chairman of the group.
Explaining the events surrounding his bid to take over the company, Otedola said “I offered to buy Transcorp Plc for N250 billion, but unfortunately, my offer was rejected. My goal was to maximize the company’s potential as a Nigerian conglomerate with a market cap of at least N2 trillion instead of the current N40 billion, but it seems some shareholders have a different vision.
“As a businessman, I believe in healthy competition and market dynamics. Two captains cannot man a ship, and I respect the majority shareholder’s decision to buy me out. This is the nature of the game.”
He stated “But let me be clear: my offer was made with the best intentions for Transcorp Plc and its shareholders. I saw an opportunity to unlock the company’s full potential and create value for everyone involved.
“It’s important for investors to understand that free entry and free exit are crucial to healthy markets. The scramble for shares after my acquisition is a testament to the value that Transcorp Plc can offer, and I hope the company continues to thrive under new leadership.
“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.”
Speaking recently at the Company’s annual general meeting, Elumelu said the operating environment was tough last year, attributing the Group’s impressive performance to quality of leadership at Transcorp.
“The Group president/CEO, Transnational Corporation, Dr. Owen Omogiafo and her team have done very well in making sure that all the sectors: Transcorp Power and Transafam Power. Transcorp’s other subsidiaries are Transcorp Hilton Abuja, Transcorp Hotels Calabar, Aura by Transcorp Hotels, and Transcorp Energy are maintaining leaders.
“In our power sector, we have increased generation significantly, helping to improve access to electricity in Nigeria. Transcorp Power generates about 600 MW of electricity every day. We have a store capacity of about 1000 MW and our generating capacity is over 700MW.
“The only reason we cannot do 750 MW a day is because of gas limitation but we are integrating our energy play and hopeful from our oil and gas plant, we will be able to buy gas to Transcorp Power and increase capacity. Nigerians need electricity and that is what we commute to Nigerians.”
Meanwhile, Transcorp at the AGM declared a dividend of five kobo per share, which was a 150 per cent increase over the previous year’s dividend.
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