The Nigerian business world is currently buzzing with news of a rift between two of the country’s most prominent billionaires, as Femi Otedola accuses Tony Elumelu of betrayal. In a recent press statement issued to TheCable on Tuesday, Otedola revealed that he proposed to buy Transcorp Plc for N250 billion, bringing the company’s market value to N2 trillion, but his bid was rejected by Elumelu.

Otedola is the Chairman of Forte Oil Plc, one of Nigeria’s leading energy companies, while Elumelu is the Chairman of Heirs Holdings, a conglomerate with investments in several sectors, including oil and gas, power, and hospitality. Both men are well-known in Nigeria’s business circles and have made a fortune through their various ventures.

It’s worth noting that Otedola acquired a 5.52 per cent stake in Transcorp Plc, which made him the company’s second-largest stakeholder. However, he later sold all of his shares to the chairman of the group, Tony Elumelu, who Otedola accuses of betrayal. Elumelu had expressed his enthusiasm for Otedola’s investment and regarded him as a close friend, evidenced by the fact that he only follows two people on Instagram: his wife and Otedola.

Premium Times reported that Tony approached Otedola in 2005 while he was managing director of Standard Trust Bank, to acquire funds to purchase shares in UBA for acquisition. Otedola gave Tony $20 million, equivalent to N2 billion at that time. However, after a short time, the share price went up, and Otedola decided to sell his shares. But Tony convinced him to hold on to them, and he did. In 2007, Otedola became the Chairman of Transcorp Hotel with a 5% shareholding, and Tony started buying shares quietly. However, in 2008, Otedola went bankrupt, and Tony took his shares in UBA and Africa Finance Corporation to service the interest on his loans. Tony also acquired Otedola’s shares in Transcorp, which further fuels Otedola’s accusations of betrayal.

Otedola has urged investors to understand that free entry and free exit are crucial to healthy markets. He stated that his offer to buy Transcorp Plc was made with the best intentions for the company and its shareholders. He hopes that the company will continue to thrive under new leadership and that he remains committed to the growth and success of Nigerian businesses. The fact that there was a scramble for shares after his acquisition shows that Transcorp Plc has value to offer, and he hopes the company will continue to prosper under new leadership. He remains committed to the growth and success of Nigerian businesses and intends to find ways to create value for all stakeholders. Unfortunately, stakeholders are often shortchanged with low payouts while the owners and managers of the business live luxurious lifestyles, which harms the stakeholders. Otedola thanks Transcorp for the chance to participate in this exciting chapter of its history.

As of this writing, Elumelu has not officially reacted to the allegations levelled against him by Otedola. However, the accusations of betrayal have stirred up controversy in Nigeria’s business community, with many speculating on the potential consequences of the rift between two of the country’s most prominent billionaires.

The news of the fallout between the two billionaires has sent shockwaves throughout Nigeria’s business community, with many wondering what will happen next. As one of the country’s most high-profile business disputes in recent years, it has captured the attention of investors and entrepreneurs alike.

So, what does this mean for the Nigerian business landscape? Is this a sign of things to come, or is it merely a blip on the radar? Do you think Otedola’s offer to buy Transcorp Plc was in the best interest of the company and its shareholders, or was it just a power play? We want to hear from you! Share your thoughts in the comments section below.

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One Comment

  1. […] Elumelu, who is also the Chairman of Transcorp, and an acquisition by Femi Otedola, which prompted Elumelu to buy out Otedola’s shares for N32 billion. The Elumelu family’s total holdings in Transcorp now exceed […]

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