Nigeria’s billionaire business mogul, Femi Otedola, has revealed that he had offered to buy Transcorp Plc for N250 billion, but his offer was rejected.
In a statement he made to Premium Times, Otedola revealed that his goal was to maximize the company’s potential as a Nigerian conglomerate. He saw an opportunity to unlock the company’s full potential and create value for everyone involved.
“I offered to buy Transcorp Plc for N250 billion, but unfortunately, my offer was rejected. My offer was made with the best intentions for Transcorp Plc and its shareholders.
“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,” said Otedola.
Otedola, who became Chairman of Transcorp Hotel in 2007 with a 5% shareholding, explained that Tony Elumelu gradually started buying shares quietly. In 2008, Otedola went bankrupt in Nigeria and Elumelu took over his shares in UBA and Africa Finance Corporation to service the interest on his loans. Otedola later agreed to sell his shares in Transcorp to an American firm, which turned out to be Elumelu. This prompted him to resign as Chairman of the hotel.
“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,” said Otedola.
“But let me be clear: 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.”
Otedola emphasised the importance of free entry and free exit in healthy markets. “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.”
Despite the rejection of his offer, Otedola remains committed to the growth and success of Nigerian businesses, and he will always be looking for ways to create value for all stakeholders.
“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,” said Otedola.