Tony Elumelu: 5 Most Brutal Business Decisions
Tony Elumelu, a Nigerian entrepreneur, has been known for his aggressive approach towards business. The Nigerian economist has made some difficult and controversial decisions in his role as a business leader. Throughout his career, he has had to make tough decisions in order to achieve a top spot.
In particular, he has made some brutal decisions amidst several challenges that have had a significant impact on the companies and industries involved. Despite these challenges, Elumelu’s willingness to take risks and make difficult decisions has helped him build successful businesses and become a respected leader in the business community.
Here are some of the most brutal business decisions that Tony Elumelu has had to make.
Elumelu battle for Transcorp
Tony Elumelu, chairman of Transnational Corporation of Nigeria Plc (Transcorp), a publicly traded diversified conglomerate recently acquired a quick additional 9.7 billion shares in separate deals to increase his combined stake in the group to 10.5 billion shares or 25.9 per cent.
This sudden acquisition was as a result of a strategic move by the Nigerian oil mogul, Femi Otedola. He acquired a 5.52-per cent stake in the company which increased his interest in the conglomerate to 6.3 per cent. This move depicts his attempt to assume control of Transcorp.
Additionally, Elumelu approached Otedola for a levelled ground which after some interventions led to Otedola selling his shares to Elumelu.
The merge and acquisition of UBA Group
Tony Eluemelu in 1997 led a small group of investors to take over a struggling Crystal Bank which was later renamed as Standard Trust Bank after he worked in the bank and assumed the position of a bank manager.
Having turned the financial institution profitable in a few years, he went ahead to acquire the United Bank for Africa in 2005 and eventually merged the now defunct Standard Trust Bank. The merger was reported to be one of the largest mergers in the country.
The acquisition of Ughelli Power Plant
Another of Tony Elumelu’s powerful business decisions is the acquisition of Ughelli Power Plant by his conglomerate in 2013. The Ughelli Power Plant is one of the largest thermal power plants in Nigeria and one of the six power generation companies of the Power Holding Company of Nigeria (PHCN) being privatised by the Federal Government of Nigeria.
Elumelu’s vision was to turn the plant into a world-class power generation facility and to help alleviate the chronic power shortages in Nigeria. He invested heavily in the plant, upgrading the equipment, improving operational efficiency, and implementing best practices in power generation. The plant has an installed capacity of 1000MW but currently producing 330MW which accounts for 8% of Nigeria’s total power generation.
Elumelu’s power friends
One of Elumelu’s strong business decisions is the number of powerful people he has in his network. This strong network has increased his business reputations as well as his brand visibility.
One powerful personality here is Africa’s richest person, Aliko Dangote. They have the same goals which are primarily focused on exploring Africa’s resources to reach its full potential. Others include James Ibori, former governor of Delta, Kennedy Uzoka, a one time Group Managing Director (GMD)of United Bank for Africa Plc, amongst others.
Elumelu once said “Instead of having a pyramid of a few billionaires, I prefer a large base that has prosperity, happier people, and people whose basic needs are met. I think that is what will give us the sustainability we need in Africa.” This statement is greatly reflected in his network of friends and associates.
Heirs Holding Capital Limited
Tony Elumelu’s decision to found Heirs Holding in 2010 is one of the most powerful decisions in the billionaires line of thought. Heirs Holding is a family-owned investment holding company headquartered in Lagos, Nigeria with investment interests in various sectors in Africa.
Inspired by Africapitalism, Elumelu is set to transform the investment portfolio which spans across the power, oil and gas, financial services, hospitality, real estate and healthcare sectors as a key enabler of economic and social wealth creation in Africa.
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