Nigerian billionaire businessman, Femi Otedola has opened up on his relationship with businessman, Tony Elumelu, and the way he betrayed him on two events.
The oil mogul shared particulars of how Tony Elumelu stabbed him within the again in an announcement launched not too long ago amid his latest scramble for the possession of Transcorp with the Heirs Holding Chairman.
Femi spoke extensively about his Transcorp shares deal and why he provided to purchase the corporate for N250 million, which was turned down.
Learn his full assertion beneath…
“In 2005, whereas Tony was the Managing Director of Commonplace Belief Financial institution he approached me to get funds to amass UBA. I enthusiastically gave him $20million, which was N2 billion at the moment to purchase the required shares in UBA for the acquisition. After a brief time frame the share value moved up and I made a decision it’s was an excellent second to promote and get out of the financial institution. Nevertheless, Tony appealed to me to carry on to the shares as he was satisfied that there have been future prospects – so I stored the shares.
I grew to become Chairman of Transcorp Resort in 2007 with a shareholding of 5% and unknowingly Tony step by step began shopping for shares quietly.
By the next 12 months in 2008 I went bankrupt in Nigeria. Tony proceeded to take my shares in UBA to service the curiosity on my loans and he additionally took over my shares in Africa Finance Company, the place I used to be the biggest shareholder.
Shortly after, Albert Okumagba knowledgeable me that an American agency needed to amass my shares in Transcorp, which I then agreed to promote. Nevertheless, this supposed American agency turned out to be Tony Elumelu. The revelation of this prompted me to resign as Chairman of the lodge.
Years later in 2012 Tony mentioned he needed to see me so we met in my workplace the place I had beforehand had a gathering with international traders who had not but departed the premises. Curious to know, he requested what kind of assembly I had had and I disclosed that I needed to enter the facility enterprise, particularly Ughelli Energy Plant. Tony quietly went forward to bid for Ughelli and he outbidded me by providing to purchase the plant for $300m.
And as a some would say: the remaining is historical past.
Quick ahead to the current..
I provided to purchase Transcorp Plc for N250 billion, however sadly, my supply was rejected. My purpose was to maximise the corporate’s potential as a Nigerian conglomerate with a market cap of a minimum of N2 trillion as a substitute of the present N40 billion, but it surely appears some shareholders have a distinct imaginative and prescient.
As a businessman, I consider in wholesome competitors and market dynamics. Two captains can’t man a ship, and I respect the bulk shareholder’s resolution to purchase me out. That is the character of the sport.
However let me be clear: my supply was made with the very best intentions for Transcorp Plc and its shareholders. I noticed a chance to unlock the corporate’s full potential and create worth for everybody concerned.
It’s vital for traders to grasp that free entry and free exit are essential to wholesome markets. The scramble for shares after my acquisition is a testomony to the worth that Transcorp Plc can supply, and I hope the corporate continues to thrive underneath new management.
My message to Transcorp Plc and its shareholders is that this: I stay dedicated to the expansion and success of Nigerian companies, and I’ll all the time be searching for methods to create worth for all stakeholders. Stakeholders are sadly all the time shortchanged by getting stipends whereas the homeowners and managers of the enterprise dwell a jet set way of life, which is detrimental to the stakeholders. Thanks for the chance to have interaction on this thrilling chapter of Transcorp’s historical past.
FO”
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