Billionaire businessman, Femi Otedola, has revealed that his offer to buy Nigerian conglomerate, Transnational Corporation Plc, for N250bn was rejected.
This came to light on Tuesday in a statement
he issued to TheCable, weeks after the businessman acquired stakes in Transcorp
and sold the shares.
He revealed that he had bought the shares of
the company because he believed in the potential of the group to hit N2tn in
valuation.
Otedola said, “I offered to buy Transcorp Plc
for N250 billion, but unfortunately, my offer was rejected. My goal was to
maximise 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.”
Going down memory lane, the majority
shareholder in Geregu Power revealed some business deals between him and the
chairman of Transcorp, Tony Elumelu.
He said, “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 five per cent 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.
“Years later in 2012, 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 outbid me by offering to buy the plant for $300 million.”
Otedola went on to add that his offer to buy
Transcorp 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.”
He, however, lamented that stakeholders in
Nigerian companies were getting shortchanged by the owners and managers.
“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.”
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