Billionaire businessman Femi Otedola has become the largest single individual shareholder in Transnational Corporation Plc (Transcorp), a publicly traded diversified conglomerate chaired by Mr. Tony Elumelu.
According to a top stockbroker at the Nigerian Exchange Group (NGX), Otedola now owns about 2.245 billion shares, representing 5.52% of the company.
The audited result and accounts for the period ended December 31, 2022, revealed that Elumelu, who is the chairman of Transcorp Corporation, owned 273,104,041 issued share capital in the diversified conglomerate.
He also held 293,983,193 shares indirectly through HH Capital Limited and 273,545,722 shares indirectly through Heirs Holdings Limited.
Dr. Stanley Lawson, a Non-Executive Director of Transcrop Corporation, owned 122,790,102 direct issued share capital, while Mrs. Owen Omogiafo, the President had 12,634,188 interest in the diversified conglomerate.
UBA Nominees was the only other shareholder with over 5% ownership of the company, owning about 9.25% of the company as of 2022.
The acquisition of Transcorp shares by Otedola is significant, given that he already has a controlling stake in Geregu Power Plc, which he listed on the Nigerian Exchange last year. It is unclear if the latest acquisition is aimed at doubling down his investment in the power sector or if he has other plans for Transcorp.
Transcorp is a diversified conglomerate with interests in power generation, oil and gas, hospitality, and agriculture.
News About Nigeria checks revealed that under the leadership of Elumelu, the company has undergone significant transformation and growth, with its revenue for 2022 standing at N134.7 billion, an increase of 21% from N111.2 billion reported in 2021.
The group reported N30.3 billion profit before tax in 2022, representing an increase of 8% from N27.9 billion in 2021.
The Board of Directors of Transcrop Corporation has approved the payment of N2.03billion dividend, being 5 kobo per share on the outstanding ordinary shares of 40,647,990,293 shares of 50 kobo each for the year ended December 31, 2022.
With only 1,695 people owning about 89% of the company’s shares, Otedola’s acquisition of such a significant stake in Transcorp is a significant development in the company’s history.
As one of Nigeria’s most prominent business leaders, Otedola’s involvement in the company is likely to attract significant attention from investors and analysts alike.