Battle of Billionaires: Why Otedola’s Bold Takeover Bid for Transcorp Plc Falls Short

“In 2005, while Tony was the Managing Director of Standard Trust Bank, he approached me to get funds to acquire UBA. I enthusiastically gave him $20 million, which was N2 billion at that time, to buy the necessary shares in UBA for the acquisition.”

In a surprising turn of events, billionaire businessman Femi Otedola‘s ambitious attempt to take control of Transcorp Plc has been thwarted.

Otedola made a bold offer of N250 billion to acquire the conglomerate, but unfortunately, his proposal was met with rejection by the company’s board. The Nigerian entrepreneur delivered a note on Tuesday detailing his unsuccessful bid.

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Otedola expressed his disappointment over the outcome, stating, “I offered to buy Transcorp Plc for N250 billion, but unfortunately, my offer was rejected. My goal was to maximize the company’s potential as a Nigerian conglomerate with a market capitalization of at least N2 trillion, instead of the current N40 billion. However, it seems some shareholders have a different vision.”

Recognizing the importance of healthy competition and market dynamics, Otedola gracefully accepted the majority shareholder’s decision to buy him out, acknowledging that such situations are part of the nature of the business game. Despite the setback, he remains optimistic and committed to the growth and success of Nigerian businesses.

The bid by Otedola came as a surprise to Tony Elumelu, the current chairman of Transcorp and another wealthy businessman. Elumelu swiftly defended the company against Otedola’s takeover attempt. It appears that this is not the first encounter between the two billionaires, as Otedola revealed,

“In 2005, while Tony was the Managing Director of Standard Trust Bank, he approached me to get funds to acquire UBA. I enthusiastically gave him $20 million, which was N2 billion at that time, to buy the necessary shares in UBA for the acquisition.”

Otedola further recounted his previous interactions with Elumelu, noting how the latter gradually acquired his shares in various companies, leaving him bankrupt in Nigeria. Despite these past experiences, Otedola made his bid to acquire Transcorp with the best intentions, aiming to unlock the company’s full potential and create value for all shareholders.

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While the bid may have been unsuccessful, Otedola believes it is crucial for investors to understand the importance of free entry and exit in healthy markets. He highlighted the scramble for shares that occurred after his acquisition attempt as evidence of the value that Transcorp Plc can offer. Otedola hopes the company will continue to thrive under new leadership.

As a dedicated advocate for the growth and success of Nigerian businesses, Otedola remains steadfast in his commitment to finding ways to create value for all stakeholders.

He expressed concerns about stakeholders receiving meager stipends while business owners and managers enjoy lavish lifestyles, emphasizing the need for a more equitable distribution of benefits.