There is something in a name and when it involves a billionaire, it is a different thing entirely.
Also, there is a saying that “when two elephant battle the grass suffers”.
This is the story following the recent drama of who becomes the highest share holder of Transnational Corporation (Transcorp).
Basically, the tussle was between billionaire businessman, Femi Otedola and Transcorp chairman, Tony Elumelu.
Transcorp is a leading diversified conglomerate focused on acquiring and managing strategic businesses that create long term shareholder value and socio-economic impact.
It has investments in the Power, Hospitality and Oil & Gas Sectors.
Despite its diverse business outlook, the company’s share value experienced a huge 9.93% fall for the first time in three weeks.
Tussle For Ownership
The fall was because of Femi Otedola’s exit from Transcorp.
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Otedola, had acquired a total of 2.47 billion shares representing a 6.08% controlling stake in the company on April 20.
This 6.08% controlling stake in the company pushed Otedola above the Transcorp chairman, Tony Elumelu, as the single majority shareholder in the company
Elumelu, who owned just a 2.06% stake in Transcorp prior to Otedola’s acquisition, responded by buying 9.69 billion shares to increase his total shares in the firm from 840.63 million to 9.99 billion shares between April 19 and 28.
Consequently, Elumelu’s stake in Transcorp rose from 2.06% to 25.2%, resulting in another power shift from Otedola to the former.
The positive trend increased shareholders’ investment value by 122.8% during the period.
Few days after, reports emerged that Otedola had exited Transcorp and sold his shares to Elumelu after friends of the investors intervened to settle the powerplay between them.
This led to a significant drop in Transcorp’s share value for the first time in three weeks after enjoying a bullish run from April 11 to April 27.
Profit-takers dumped Transcorp shares on Friday, when reports of Otedola’s disinvestment from the company went viral.
Transcorp’s share price crashed from ₦3.12 kobo to ₦2.81 kobo on Friday, dragging down shareholders’ investment by ₦12.6 billion or 9.93%.
