Tony Elumelu has made a significant impact on the Nigerian economy through his ownership of Transnational corporation of Nigeria (Transcorp), one of Nigeria’s largest conglomerates.
The Nigerian economist’s entrepreneurial skills and strategic vision have helped to transform Transcorp into a diversified conglomerate with interests in power, hospitality, agriculture, amongst others.
In this article, we will take a closer look at Tony Elumelu’s ownership of Transcorp, exploring some of the key things to know about his leadership and the company’s activities.
When he acquired Transcorp
Tony Elumelu’s investment company, Heirs Holdings, acquired a 51% stake in Transcorp in 2011 which gave him a controlling interest in the company. This acquisition made Elumelu the Chairman of Transcorp’s board of directors, and he has since been instrumental in driving the company’s growth and expansion.
However, Elumelu was officially handed the Certificate of Discharge of the iconic hospitality facility in 2021. This is handing over the full ownership of Transcorp Hotels to the Chairman having fulfilled all privatization conditions attached to the sale of the property in 2005.
Number of shares in Transcorp
The Group’s 2022 financials stated that Elumelu’s direct Holdings in Transcorp was at 273,104,041. His indirect shares through Heirs Holding Capital Limited was 293,983,193 as well as 273,545,722 through Heirs Holdings Limited.
This brings his total holdings in Transcorp to 9,991,173,177 units. This represents about 25.58per cent of the company’s total shares as of April 25, 2023. This cemented his position as Transcorp’s main and biggest shareholder.
He bought another stake from Otedola
Nigerian businessman, Femi Otedola recently acquired a substantial shareholding of 5.52-per cent stake in Transcorp which made him the second-largest shareholder of the company. Otedola further acquired additional shares, increasing his interest in the conglomerate to 6.3 per cent.
However, Elumelu had racked up his interest from 2.07 to 25.9 per cent. He acquired an additional 9.7 billion shares in separate deals to add up his combined stake in the group to 10.5 billion shares or 25.9 per cent.
Elumelu’s comment on the stake bought from Otedola
Sources revealed that Otedola’s move to acquire a larger per cent or take the peak spot in the conglomerate upset the company’s chairman. Elumelu however dismissed the speculations by saying that he is excited that his friend, Otedola would be investing in his company.
Elumelu further douses the tension saying Femi Otedola is his friend, brother, and business partner and he expressed his joy on welcoming him to investment in Transcorp.
Transcorp several acquisitions
Under the leadership of Tony Elumelu, Transcorp has taken on several acquisitions as well as partnerships. This includes the lease agreement with the Benue State Government for the Benfruits juice concentrate plant in Markurdi in 2010.
Also, the conglomerate acquired Ughelli Power Plant, one of the six power generation companies of the Power Holding Company of Nigeria (PHCN) being privatised by the Federal Government of Nigeria. The plant has an installed capacity of 1000MW but currently producing 330MW which accounts for 8% of Nigeria’s total power generation.
Elumelu’s Transcorp power shares to be made public
Tony Elumelu said that members of the investing public will be able to buy and sell shares of Transcorp Power in five years time. He said that the power-generating company wants to put some things in place before going public which would be soon.
He said , “We believe in the next five years, the transmission line will be fixed and gas supply to the sector would have improved significantly,”
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