Popular businessman and one of the richest man in Nigeria, Femi Otedola has open up on some issues with Tony Elumelu. In his words, he said in 2005, I was approached by Tony, who was then the Managing Director of Standard Trust Bank, to provide funds for the acquisition of UBA. I gave him $20 million, which was equivalent to N2 billion at the time, to purchase the necessary shares. Soon after, the share price rose, and I decided to sell my shares. However, Tony convinced me to hold on to them, as he believed there were future prospects.
In 2007, I became the Chairman of Transcorp Hotel, with a 5% shareholding. Tony gradually started buying shares, and by 2008, I went bankrupt in Nigeria. Tony then took over my shares in UBA and Africa Finance Corporation to service the interest on my loans. He later revealed that he was the supposed American firm that wanted to acquire my shares in Transcorp, which led me to resign as Chairman of the hotel.
In 2012, I met with Tony in my office, where I had previously had a meeting with foreign investors who were still present. I disclosed my interest in the power business, specifically the Ughelli Power Plant. Tony went ahead to outbid me by offering to buy the plant for $300 million.
Recently, I offered to buy Transcorp Plc for N250 billion, with the aim of maximizing the company’s potential as a Nigerian conglomerate with a market cap of at least N2 trillion. However, my offer was rejected by the majority shareholder. While I respect their decision, my offer was made with the best intentions for the company and its shareholders.
As a businessman, I believe in healthy competition and market dynamics, where free entry and exit are crucial. The scramble for shares after my acquisition is a testament to the value that Transcorp Plc can offer. 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.
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I urge the company and its shareholders to work towards unlocking its full potential and creating value for everyone involved. The stakeholders should not be shortchanged, and the owners and managers should not live a jet-set lifestyle at their expense. Thank you for the opportunity to be a part of Transcorp’s history.
