Billionaire businessman Femi Otedola has exited his stake in Transcorp Plc.
Otedola had acquired a 6% stake in Transcorp over a series of carefully orchestrated purchases going almost unnoticed until the acquisition was announced.
sources say the billionaire investor reached a deal with Elumelu to exit the company.
Both parties entered negotiations about a possible exit in the early hours of Thursday.
It is understood that both parties will continue to explore other forms of collaboration over their common interest in the power sector.
Sources indicate Elumelu bought Otedola out at a premium said to be between 4 to 6 times the current market price of the share.
An announcement of the transaction is however imminent on the Nigerian Exchange.
Otedola had announced in early April that he had acquired 5.52% of Transcorp making him the second-largest shareholder of the company and the largest individual shareholder.
He then took his stake in the company to as much as 6.3% triggering a bidding war for the stock.
The purchase immediately triggered a rally for the share price of the stock, doubling in under two weeks.
In response to Otedola’s acquisition, Elumelu consolidated his holdings, increasing his indirect ownership stake to about 25.58% which he announced on April 26th, 2023.
On Thursday, 27th of April Transcorp informed the Nigerian Exchange Limited (NGX) and the investing public of the acquisition of new shares by HH Capital Limited.
HH Capital Limited acquired 9,697,189,984 units of shares, bringing their total holdings in Transcorp to 9,991,173,177 units, representing 25.58% of the Company’s total shares.
This fast-tracked a decision between both parties to hash out an exit for Otedola, who was about to seek a board seat.
The deal brings to an abrupt end one of the most intriguing corporate moves in 2023.
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