Elumelu’s Indirect Interest in Transcorp Increases to 25.58%

Kayode Tokede

The management of Transcorp Incorporated Plc (Transcorp), yesterday announced on the floor of the Nigerian Exchange Limited (NGX) that its Chairman, Mr. Tony Elumelu’s indirect interest in the conglomerate has increased to 25.58 per cent.
The notice on the Exchange disclosed that HH Capital Limited, a Special Purpose Vehicle (SPV) owned by the billionaire investor acquired 9,697,189,984 units of shares, bringing its total holdings in Transcorp to 9,991,173,177 units, representing 25.58per cent of the company’s total shares as of April 25, 2023.

According to the Group’s 2022 financials, Elumelu’s direct Holdings in Transcorp was at 273,104,041.
The financial statement had disclosed that 293,983,193 shares are held indirectly by Elumelu through HH Capital Limited and 273,545,722 shares are held indirectly through Heirs Holdings Limited.

The acting Company Secretary, Transcorp, Funmi Olofintuyi in a statement obtained yesterday, explained: “In compliance with Chapter 17, Rule 17.13 of the NGX Issuers Rules, Transnational Corporation Plc (the Company) hereby informs the NGX and the investing public of the below new acquisition of shares in the company.

“With this new acquisition, HH Capital Limited now holds a total of 9,991,173,177 units, representing 25.58per cent of the Company’s total shares.”
According to her, HH Capital purchased 1,843,008,604 units at N1.85; 6,552, 167,522 units at N2.45; 16,738,209 units at   N2.69; 1,039,399,057 units at N2.95, and 245,876,592 at various prices. all totaling 9,697,189,979 units were part of the transactions consummated between April 19 to April 25, 2023.
However, in a separate notice, Olofintuyi revealed that billionaire businessman and Executive Vice Chairman, Geregu Power, Mr.  Femi Otedola, purchased additional 228,384,959 shares of the company.

The notice did not mention the value at which the shares were purchased by Otedola.
According to her, “the company welcomes the continued expression of confidence in its leadership and management by the investing public, as we continue our unwavering commitment to superior stakeholders’ returns, anchored in our ideology of Africapitalism.

“Rest assured, we are committed to remaining resolute in executing our Group’s strategy of making strategic investments in key sectors within the Nigerian economy, transforming Africa, and contributing positively towards building prosperity for all.”
It is, however, unclear if UBA Nominees, which was the erstwhile majority shareholder of Transcorp still retains its shareholding or if part of it was crossed to HH Capital Ltd.

UBA Nominees which owns about 9.25per cent of the company as of 2022 from 9.26 per cent reported in 2021.
The stock price of Transcorp closed yesterday at N3.12 per share, up by 5.76per cent from N2.95 per share it opened for trading.
Elumelu on Wednesday, expressed satisfaction with the recent acquisition of significant stake in the conglomerate by Odetola. THISDAY had reported that the billionaire, according to the report now holds 6.3 per cent stake in the company.

However, speaking in an exclusive interview with Arise News Channel, THISDAY’s sister organisation, after the Group’s 17th Annual General Meeting (AGM), Elumelu said he welcomed Odetola’s investment in Transcorp, calling on the general public not to be sentimental about the decision.

According to him, “We go on international roadshows and talk to investors to invest in our companies. I am happy to see an active indigenous investors community. I am happy that Femi Odetola is investing locally and he should be commended for that and I also welcome him for that.

“That is because the more people show interest in the activities, and performance of the company, the better for shareholders. You want to make your stock investors’ toast and I am happy that Transcorp is becoming investors toast.

“About 10 years ago before we took over Transcorp, people were not interested. People lost confidence in the company. Today under our leadership, Transcorp has consistently paid dividends in the last five years. There is a capital appreciation for the company.”

Speaking further, Elumelu, who is also the Chairman of United Bank for Africa Plc, said: “When friends and investing public invest in a public company like this, it is a validation and tells you they believed in your story, vision, management, leadership and competent.

“I like my friend to come on board and I looked forward with him to take Transcorp to greater height.”

He debunked reports of listing Transcorp Power on the floor of the Nigerian Exchange Limited (NGX), highlighting challenges facing the sector in Nigeria.

“We are long-term players. We wanted to grow more and more significantly. There are a few more things we wanted to do in the power sector so that it can blossom. The transmission line has to be fixed and the gas supply has to be fixed.

“We believe when transmission line is improved, and also address gas supply issue, that will be the right time. We are looking for about five years from now to list on the NGX. We believe in the next five years, the transmission line be fixed and gas supply to the sector would have improved significantly,” Elumelu said.

Speaking on the Group’s performance in 2022 performance, he said the operating environment was tough last year, attributing the Group’s impressive performance to quality of leadership at Transcorp.

“The Group President/CEO, Transnational Corporation Plc, Dr. Owen Omogiafo and her team have done very well in making sure that all the sectors:  Transcorp Power and