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Elumelu Holds Steady Amidst Otedola’s Transcorp Share Acquisition Surge

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LAGOS, Nigeria – Despite Femi Otedola’s strategic acquisition of shares in Transnational Corporation Plc (Transcorp), Tony Elumelu remains unfazed, holding firm control of the conglomerate, according to market insiders.

Otedola, a prominent businessman from Ibadan, recently increased his stake in Transcorp to 6.3 per cent, making him the second-largest shareholder behind UBA Nominees, which owns about 9.25 per cent.

This move has stirred up the Nigerian financial market, bringing unprecedented attention to Transcorp’s shares.

“Otedola has caused an explosion in Transcorp that could be giving Elumelu some concern,” stated David Adonri, Executive Vice Chairman of Highcap Securities Limited.

However, the notion that Otedola’s moves threaten Elumelu appears to be far from the truth.

Tony Elumelu, who took over control of the company in 2012, has not been passive during this period. In a strategic response to Otedola’s acquisition, Elumelu bolstered his already substantial shareholding, purchasing over two billion units of Transcorp shares last week, confirming his commitment to the company he has steered for over a decade.

“Since Tuesday (April 18), Elumelu has started buying Transcorp shares to increase his ownership of the business,” Adonri explained. “Transcorp shares are pure gold, that is what Elumelu is keeping close to his chest, and is right now moving in to mop up from everywhere the stock is hidden.”

Elumelu’s firm hold on Transcorp remains unshaken, according to Abel Ezekiel, an investment and portfolio analyst. “Tony Elumelu cannot fold his hand and watch his compatriot, Femi Otedola, take over,” he said, underscoring the strategic importance of Elumelu’s recent share purchases.

Indeed, Elumelu’s concerted response to Otedola’s move is a testament to his unwavering commitment to Transcorp, a conglomerate with investments in power, hospitality, and energy sectors.

According to Ezekiel, “Elumelu has to step up his own buying appetite, which would trigger the massive mop-up, and which would naturally be followed by price appreciation witnessed at the market in the past couple of weeks.”

With these strategic manoeuvres by both Elumelu and Otedola, analysts predict an optimistic outlook for Transcorp and its shareholders.

The recent surge in market activity reflects the personal interests of these two financial titans and provides an excellent opportunity for minority investors and could potentially stimulate local investors’ interest in the Nigerian financial market.

SourceICIR

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