Home » Nigerian billionaire Femi Otedola now one of Transcorp’s top shareholders

Nigerian billionaire Femi Otedola now one of Transcorp’s top shareholders

by Omokolade Ajayi
Femi Otedola

Nigerian billionaire businessman and energy magnate Femi Otedola has made a strategic move by acquiring a 5.52-percent stake in Transnational Corporation of Nigeria Plc (Transcorp), a publicly traded diversified conglomerate led by Tony Elumelu.

The deal, which is worth approximately N3.1 billion ($6.8 million), reflects Otedola’s shrewd investment approach in underperforming and undervalued firms.

Through this acquisition, he aims to unlock the untapped potential of the conglomerate, which has significant investments in the hospitality, power, and oil and gas sectors.

With this latest purchase, Otedola has emerged as one of the leading shareholders in Transcorp, behind UBA Nominees, which owns a 9 percent stake in the conglomerate.

The move positions Otedola to spearhead the conglomerate’s growth and create value for shareholders who have seen a substantial decline in their investments over the past decade.

Under the current management led by Elumelu, the company’s shares have shed more than 40 percent of their market value since 2018.

By leveraging his business acumen and expertise, Otedola is poised to steer Transcorp toward a path of sustainable growth and profitability.

Otedola’s impressive leadership skills and aggressive management strategies have earned him a reputation for turning around underperforming companies and transforming them into top-performing entities.

As the chairman of Geregu Power, one of Africa’s fastest-growing power-generating companies, Otedola has demonstrated his ability to create value and drive growth.

In 2021, Otedola became the largest shareholder in Nigeria’s oldest bank, First Bank of Nigeria Holdings Limited (FBNH), and his influence has significantly impacted the financial service group’s performance.

Since he became the largest shareholder in the Nigerian lender, its earnings have been on the rise with FBNH’s profit increasing by nearly 100 percent in 2021.

In the first nine months of 2022, the lender’s profit increased by 123 percent from N40.9 billion ($93.4 million) to N91.29 billion ($208.8 million), thanks to its well-diversified loan portfolio.

Now, with his sights set on Transcorp, Otedola is poised to deploy the same growth strategies that have propelled Geregu Power to success.

As the seventh most valuable company on the Nigerian Exchange, Geregu Power is presently worth over $1.7 billion, thanks to a 223-percent increase in its stock price since its debut on Oct. 5, 2022.

With his proven track record of turning underperforming companies into top-performing entities, Otedola’s leadership at Transcorp is expected to unlock untapped potential and place the conglomerate on a path of sustained growth and profitability.

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