Nigerian billionaire, Femi Otedola has come out to reveal the details that may have triggered his desire to acquire shares worth about 6% in Transcorp and the reason why he sold shortly after.

According to a press release, the details contained shocking news as it suggested that the Transcorp affair between Mr. Otedola and Mr. Elumelu, dates as far back as 16 years ago when Elumelu was the MD/CEO of Standard Trust Bank and Mr. Otedola was the chairman of the company.

In April, Otedola sold off the 6% shares he owned in Transcorp to Heirs Holding Ltd after both men seemingly displayed public affection for each other and agreed to work together.

According to reports, Mr. Otedola’s initial stake in the company was acquired way back in March which was worth 5.03% and made him the second largest shareholder of the company. The announcement of that purchase immediately triggered a rush for the shares of the company as investors saw it as an ideal opportunity to buy. And in a matter of weeks, the share price more than doubled.

However, as Otedola upped his stake to just over 6%, Tony Elumelu courtesy of his special purpose vehicle, Heirs Holdings also increased his stake in the company which took his ownership of the conglomerate to over 25%.

This is a full extract of Mr.Otedola’s statement.

“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. After a short period of time, the share price moved up and I decided it was a good moment to sell and get out of the bank. However, Tony appealed to me to hold on to the shares as he was convinced that there were future prospects – so I kept the shares.”

“I became Chairman of Transcorp Hotel in 2007 with a shareholding of 5% and unknowingly Tony gradually started buying shares quietly.”

“By the following year in 2008, I went bankrupt in Nigeria. Tony proceeded to take my shares in UBA to service the interest on my loans and he also took over my shares in Africa Finance Corporation, where I was the largest shareholder.”

“Shortly after, Albert Okumagba informed me that an American firm wanted to acquire my shares in Transcorp, which I then agreed to sell. However, this supposed American firm turned out to be Tony Elumelu. The revelation of this prompted me to resign as Chairman of the hotel.”

“Years later in 2012 Tony said he wanted to see me so we met in my office where I had previously had a meeting with foreign investors who had not yet departed the premises. Curious to know, he asked what sort of meeting I had had and I disclosed that I wanted to go into the power business, specifically Ughelli Power Plant. Tony quietly went ahead to bid for Ughelli and he outbid me by offering to buy the plant for $ 300 million.”

“And as some would say: the rest is history.”

“Fast forward to the present…”

“As a businessman, I believe in healthy competition and market dynamics. Two captains cannot man a ship, and I respect the majority shareholder’s decision to buy me out. This is the nature of the game.”

“But let me be clear: my offer was made with the best intentions for Transcorp Plc and its shareholders. I saw an opportunity to unlock the company’s full potential and create value for everyone involved.”

“My message to Transcorp Plc and its shareholders is this: 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. Stakeholders are unfortunately always shortchanged by getting stipends while the owners and managers of the business live a jet-set lifestyle, which is detrimental to the stakeholders. Thank you for the opportunity to engage in this exciting chapter of Transcorp’s history.” Femi Otedola

The Implication of the statement is that:

Mr. Otedola is accusing Mr. Tony Elumelu of taking his shares in Africa Finance Corporation and UBA to aid the interest on his loans when he went bankrupt in Nigeria.

Tony Elumelu is also accused of buying shares in Transcorp Hotel discreetly and outbidding Mr. Otedola to acquire Ughelli Power Plant after he made known his interest in the plant to Tony. However, Otedola is not making any direct accusations against Transcorp Plc or its shareholders.

It is understood that Elumelu might release a statement soon to address the comments from Mr. Otedola.

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