Transcorp has announced that Nigerian businessman Femi Otedola has acquired a 5.5% interest in the company. The move, which sees Otedola acquire 2.2 billion shares, makes him the second-largest shareholder after UBA Nominees Limited. Transcorp’s businesses span energy, oil and gas, and hospitality.
The announcement comes after speculation last week that Otedola was considering a substantial share purchase. Transcorp has welcomed the move, stating that it is an expression of confidence in the company’s leadership and management.
The purchase has also cleared the air regarding rumours about Otedola’s intentions, which saw Transcorp’s shares rise 78.8% in the nine days between the speculation emerging and the announcement of the acquisition. Otedola already owns Geregu Power, which has an installed capacity of 435 MW. Transcorp’s most recent acquisition, Afam Power, has an installed capacity of 966 MW.
Earlier on the day of the announcement, Otedola had spoken out about Transcorp’s board of directors changing the close period deadline to suit insiders’ interests. Close periods prevent insiders, such as directors and major shareholders, from trading on a company’s shares during the interval between a publicly quoted company completing its financial report and when it is issued to the public.
Otedola argued that Transcorp had declared a closed period from 1 April, which meant that no member of the board or management could purchase shares in the company. However, the board brought forward the deadline and published the results on 18 April, allowing insiders to purchase shares. The purchase by Otedola has seen Transcorp’s shares gain about 70% in one week.