Serial investor and billionaire, Femi Otedola has exited his stake in Transcorp Plc.
Otedola had acquired an above 6% stake in Transcorp over a series of carefully orchestrated purchases going almost unnoticed until the acquisition was announced.
The billionaire investor reached a deal with Elumelu to exit the company. The decision effectively staves off a possible greenmail situation for Transcorp which may have turned out murky.
Both parties entered negotiations about a possible exit in the early hours of Thursday after both had declared willingness to work together in an apparent bromance.
The negotiations leading to the agreement were said to be swift yet cordial as both parties opined it was in their mutual best interest to part ways. Elemelu and Otedola publicly agreed to work together to promote Transcorp’s interests.
Otedola announced in early April that he had acquired 5.05% of Transcorp making him the second-largest shareholder of the company. The purchase immediately triggered a rally for the share price of the stock, doubling in under two weeks.
In response to Otedola’s acquisition, Elemelu consolidated his holdings, increasing his ownership stake to about 25% which he announced on April 26th, 2023.
Otedola’s exit brings to an abrupt end one of the most intriguing corporate moves in 2023. Transcorp share price was down 9.9% in the early hours of Friday. The stock was on full offer with over 100 million shares on offer with limited bids.