Nigerian billionaire businessman, Femi Otedola, has revealed the cause of his feud with fellow billionaire businessman and chairman of Transcorp, Tony Elumelu.
Otedola also spoke about how he
went bankrupt in 2008 amid other revelations while speaking on his move to buy
Transcorp, a conglomerate whose 5.5 per cent shares he recently acquired.
He alleged that Elumelu
betrayed him on different occasions.
According to an online
newspaper, Premium Times, Otedola said he offered to buy Transcorp Plc for N250
billion, but his offer was rejected.
The statement reads in part,
“In 2005, while Tony was the Managing Director of Standard Trust Bank he
approached me to get funds to acquire UBA. I enthusiastically gave him $20
million, which was N2 billion at that time to buy the necessary shares in UBA
for the acquisition.
“After a short period of time
the share price moved up and I decided it was a good moment to sell and get out
of the bank. However, Tony appealed to me to hold on to the shares as he was
convinced that there were future prospects – so I kept the shares.
“I became Chairman of Transcorp
Hotel in 2007 with a shareholding of 5% and unknowingly Tony gradually started
buying shares quietly. By the following year in 2008 I went bankrupt in
Nigeria. Tony proceeded to take my shares in UBA to service the interest on my
loans and he also took over my shares in Africa Finance Corporation, where I
was the largest 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 said years later in
2012, he told Elumelu about his interest in Ughelli Power Plant and the
Transcorp chair “quietly went ahead” to outbid him in 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 said his goal was to
maximize Transcorp’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.
He said, “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.
“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.”
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