Based on the official statement released by Femi Otedola, there are several claims made about Tony Elumelu’s actions that could be perceived as harmful to Otedola’s interests, News About Nigeria reports.
However, it is important to note that this is only one side of the story, and we do not have access to Tony Elumelu’s perspective or any additional evidence to corroborate these claims.
That being said, let’s examine the claims made in the statement and analyze them critically:
Tony Elumelu approached Femi Otedola in 2005 to get funds to acquire UBA. Otedola gave him $20 million, which was N2 billion at the time, to buy the necessary shares in UBA for the acquisition.
Analysis: It is not uncommon for business partners to seek funding from one another, and it is possible that Otedola saw an opportunity to invest in UBA and believed that Elumelu had the expertise to execute the acquisition successfully.
After a short period of time, the share price moved up, and Otedola decided it was a good moment to sell and get out of the bank. However, Tony appealed to him to hold on to the shares as he was convinced that there were future prospects, so Otedola kept the shares.
Analysis: It is possible that Elumelu had insights into the future potential of UBA that Otedola did not have at the time. However, it is also possible that Elumelu had his own interests in mind and wanted Otedola to hold on to the shares so that he could later acquire them at a better price.
Otedola became Chairman of Transcorp Hotel in 2007 with a shareholding of 5%, and Tony gradually started buying shares quietly.
Analysis: It is not uncommon for shareholders to gradually accumulate shares in a company over time. Without more information, it is difficult to determine whether Elumelu’s actions were inappropriate or unethical.
By 2008, Otedola went bankrupt in Nigeria, and Tony took over his shares in UBA to service the interest on his loans. Tony also took over his shares in Africa Finance Corporation, where Otedola was the largest shareholder.
Analysis: It is possible that Elumelu acquired Otedola’s shares in UBA and Africa Finance Corporation as part of a loan agreement, but without more information, it is difficult to determine the exact nature of the transaction and whether Elumelu acted appropriately.
Albert Okumagba informed Otedola that an American firm wanted to acquire his shares in Transcorp, which he agreed to sell. However, the supposed American firm turned out to be Tony Elumelu. The revelation of this prompted Otedola to resign as Chairman of the hotel.
Analysis: If Elumelu misrepresented himself as an American firm in order to acquire Otedola’s shares, this would be an unethical and possibly illegal action. However, we do not have access to additional information or evidence to support this claim.
In 2012, Tony outbid Otedola for Ughelli Power Plant by offering to buy the plant for $300 million.
Analysis: It is not uncommon for multiple parties to bid on a business opportunity, and it is possible that Elumelu simply had a better offer than Otedola. However, it is also possible that Elumelu had unfair advantages or insider knowledge that allowed him to outbid Otedola.
Otedola offered to buy Transcorp Plc for N250 billion, but his offer was rejected. He wanted 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.
