Nigerian billionaire Femi Otedola’s strategic acquisition of a 5.52-percent stake in Transnational Corporation of Nigeria Plc (Transcorp) has yielded impressive gains for shareholders.
The company’s market capitalization has surged by $42 million since the news of the acquisition broke on April 12.
According to data tracked by Billionaires.Africa, Transcorp’s share price has risen by over 35 percent, from N1.37 ($0.00296) to N1.85 ($0.00399) since Otedola’s strategic move, netting significant gains for the company’s shareholders.
The double-digit percentage increase has pushed Transcorp’s market capitalization up by N19.51 billion ($42.1 million) to N75.2 billion ($162.3 million) at the time of writing. Otedola’s acquisition of a significant stake in the conglomerate underscores his investment strategy of targeting underperforming and undervalued companies.
Although the exact size of his current investment in Transcorp remains unknown, the billionaire’s shrewd move has undoubtedly benefited the company’s long-suffering shareholders, many of whom have been trapped for over a decade.
As a leading figure in Africa’s power sector, Otedola is making a strategic move to unlock the untapped potential of Transcorp through his latest transaction.
The move comes as no surprise as Otedola has been a non-executive director of the conglomerate since 2006, reflecting his long-standing interest in the company.
Transcorp was established in 2004 to respond to market opportunities requiring heavy capital investment in Nigeria and across sub-Saharan Africa.
With significant investments in the hospitality, power, and oil and gas sectors, the conglomerate has struggled to create value for shareholders and achieve growth under current management.
Otedola’s latest investment marks his return to the company after leaving in 2011 to focus on his investments in the power sector and Forte Oil (now Ardova Plc), which he sold to Prudent Energy in 2019.
By reentering the company, Otedola demonstrates his shrewd investment strategy and his determination to unlock value for investors who have been trapped for more than a decade due to the slump in the company’s share price over the years.
Leveraging his expertise and experience in the power sector, the Nigerian billionaire aims to place the company on the path of growth and create value for shareholders.
His latest move underscores the importance of strategic investment in underperforming and undervalued firms in the pursuit of long-term growth and profitability.
