Femi Otedola’s Acquisition: Transcorp’s Market Cap Soars by $55 Million 

Nigerian billionaire Femi Otedola’s acquisition of a 5.52-per cent stake in Transnational Corporation of Nigeria Plc (Transcorp) has made the company’s market capitalization surge by $42 million.

According to reports, Transcorp’s share price increased by over 35 per cent, from $0.00296 to $0.00399 since Otedola’s strategic acquisition news broke on the 12th of April, 2023.

The double-digit percentage increase which yielded impressive gains for shareholders has pushed Transcorp’s market capitalization up by $42.1 million to $162.3 million.

Otedola’s acquisition of a significant stake in the conglomerate spotlights his investment strategy of targeting underperforming and undervalued companies.

Otedola’s return to Transcorp

Newsmen reports that Otedola has been a non-executive director of the conglomerate from 2006-2011. Transcorp was established by President Olusegun Obasanjo in 2004 to respond to market opportunities requiring heavy capital investment in Nigeria and across sub-Saharan Africa.

His latest investment signifies his return to the company after leaving in 2011 to focus on his investments in the power sector and Forte Oil (now Ardova Plc), which he sold to Prudent Energy in 2019.

Reports say Transcorp has struggled to create value for shareholders and achieve growth despite its significant investments in the hospitality, power, and oil and gas sectors.

What Otedola’s investment could do for Transcorp?

Otedola’s strategic acquisition could unlock value for investors who have been trapped for more than a decade due to the slump in the company’s share price over the years.

Also, Otedola’s expertise and experience in the power sector could put the company on the path of speedy growth. Otedola has a rich portfolio of investments including a majority stake in the Geregu Power Plant, a 435-megawatt thermal power plant in Kogi State. He also acquired SeaForce Shipping Company Limited, one of the biggest shipping companies in Nigeria.