Femi Otedola, a multibillionaire businessman, sold all of his stock in Transcorp, a publicly traded diversified company led by Tony Elumelu.
Sources claim that Elumelu bought Otedola shares on Thursday at Transcorp’s closing price under an options arrangement that was to be settled over time in a series of installments.
“The negotiations preceding up to it were claimed to have been brief but pleasant, as both parties believed that reaching an agreement was in their best interests to do so. Otedola and Elemelu publicly stated their intention to work together to accomplish Transcorp’s goals, according to sources.
Otedola recently increased his ownership stake in the multinational Transcorp to 6.3 percent, therefore the announcement shocked the stock market.
Otedola became the majority owner of Transcorp on April 15 after purchasing around 5.52 percent of the company’s shares.
A company owned by the billionaire and Asset Management Corporation of Nigeria agreed to buy Otedola’s shares in Transcorp. At the conclusion of trading, a transaction involving 1.5 billion Transcorp shares worth N2.1 billion was completed on the Nigerian Exchange Limited.
Transcorp finished at N3.12 per share at the end of the trading day on Thursday, not far from its 52-week high of N3.24 and its 52-week low of 0.98kobo.