With 5.5% Stake, Femi Otedola Emerges Transcorp’s Largest Individual Shareholder

Kayode Tokede

Billionaire businessman, Mr. Femi Otedola has emerged largest single individual shareholder in Transnational Corporation Plc (Transcorp), a publicly traded diversified conglomerate chaired by Mr. Tony Elumelu.

A top stockbroker at the Nigerian Exchange Group (NGX), disclosed to THISDAY that the billionaire now owns about 2.245 billion shares, representing 5.52per cent of the company.

According to the audited result and accounts for period ended December 31, 2022, Elumelu, who is the chairman of Transcrop Corporation owned 273,104,041 issued share capital in the diversified conglomerate.

He also held 293,983,193 shares indirectly through HH Capital Limited and 273,545,722 shares are held indirectly through Heirs Holdings Limited.

Dr. Stanley Lawson, a Non-Executive Director of Transcrop Corporation owned 122,790,102 direct issued share capital, while Mrs. Owen Omogiafo, the President had 12,634,188 interest in the diversified conglomerate.

The only other shareholder with over five per cent ownership of the company is UBA Nominees which owns about 9.25per cent of the company as of 2022 from 9.26 per cent reported in 2021.

“As at December 31, 2022, only UBA Nominees Limited-Trading, held five per cent or more of the issued and fully paid shares of 50 kobo of the Company,” according to the 2022 audited result and accounts posted on the NGX.

No other shareholder held above five per cent according to records. The company also has about 39.65 billion out of its 40.65 billion outstanding shares on a free float. In fact, 1,695 people own about 89per cent of the company’s shares.

Transcorp is currently controlled by billionaire investor, Elumelu who took over control of the company in 2012. Since then the company has gone on to acquire a power generation company and branched into the oil and gas sectors of the economy.

Femi Otedola also acquired significant control of FBN Holdings early last year when he announced he had acquired shareholdings above the five per cent threshold.

That also immediately triggered a bidding war for the stock. However, unlike FBN Holdings, Transcorp has a single majority shareholder with control of the company.

Otedola also owns close to 90per cent stake in Geregu Power Plc which it listed on the Exchange last year. It is unclear if the latest acquisition is aimed at doubling down his investment in the power sector.

Transnational Corporation released its financial results for the full year ended December 31, 2022, with N134.7billion revenue, an increase of 21 per cent from N111.2billion reported in 2021.

The group reported N30.3billion profit before tax in 2022, representing an increase of eight per cent from N27.9billion in 2021. 

The Board of Directors of Transcrop Corporation had approved the payment of N2.03billion dividend  (2021:N812.96million), being 5 kobo per share on the outstanding ordinary shares of 40,647,990,293 shares of 50 kobo each for the year ended December 31, 2022.