Tony Elumelu To Spin off Transcorp Power in 5 Years

Nigerian businessman, Tony Elumelu, has confirmed plans to spin off the energy arm of Transnational Corporation of Nigeria Plc, Transcorp Power, in five years. He also debunked rumors that the conglomerate planned to list the power business on the Nigerian Exchange.

Speaking during an interview, Transcorp’s Chairman, Elumelu noted that the potential spin-off of Transcorp Power is a result of a board resolution passed at the conclusion of the company’s Annual General Meeting (AGM). He said, “We are looking at about 5 years from now to list Transcorp Power because we believe the transmission lines would have been fixed and the gas supply to the power sector would have improved significantly.”

Transcorp Power’s potential spin-off comes more than eight years after the conglomerate spun off Transcorp Hotels as a separate entity from the group through an initial public offering in 2015.

Elumelu denies plans to list Transcorp Power on the Exchange

Speaking about the firm’s future plans, Elumelu said, “No, we are not currently listing; I hear that rumor from time to time, especially after some competing institutions were listed on the Exchange. No, we are long-term players, we want to grow more and significant value in the power sector.”

His statement comes after Nigerian billionaire, Femi Otedola increased his ownership interest in the diversified conglomerate beyond 6.3 per cent after purchasing a 5.52-per cent stake in Transcorp nearly two weeks ago, equivalent to 2,245,639,251 ordinary shares. His acquisition triggered substantial off-market trades, with United Capital Securities, a company linked to Tony Elumelu, reportedly acquiring over a billion shares in response.

Reacting to Otedola’s acquisition, Elumelu said, “I am happy to see an indigenous active investor community, and I am happy that Femi is investing locally, and he should be commended for that.”