The Nigerian billionaire and Chairman of Transcorp Plc, Tony Eleumelu has on Wednesday said he welcomes the recent investment in Transcorp of fellow billionaire, Femi Otedola.
Elumelu spoke on Arise Tv about Trancorp’s business in Nigeria and said he looked forward to working together with Otedola in Transcorp.
Femi Otedola recently made headlines when his 5.52% stake in Transcorp Plc was disclosed making him the largest single shareholder of the conglomerate.
Elumelu described Otedola as his good friend and brother and disclosed that Otedola was one of only two people he followed on social media. He added that
He expressed his happiness that Femi Otedola was investing locally and his investment would be positive and help attract more shareholders to Transcorp. He described the investment as a validation of the work the management of Transcorp has been doing over the years.
Elumelu is quoted as saying:
About 10 years ago before we took over Transcorp, people were not interested. People lost confidence in the company. Today under our leadership, Transcorp has consistently paid dividends in the last five years. There is a capital appreciation for the company.
He added that Otedola coming on board would help take Trancorp to greater heights.
The entry of Femi Otedola into Transcorp has generated so much interest and speculation as to the motive behind the move. Otedola is currently the Chairman of Geregu Power Plc which is competing with Transcorp in the power sector. Transcorp has exposure to the hospitality, oil and gas and power sector.
Geregu Power Plc is a much smaller player in the power sector compared to Transcorp which runs two massive power stations (Afam and Ughelli), with a combined capacity in excess of 2000MW.
There are speculations that the recent meetings of president-elect, Bola Tinubu with Elumelu might be paving a way for Transcorp to play a much larger role in the power transmission sector in Nigeria. That would make the power sector more lucrative for Trancorp Plc. This could be one reason for the entrance of Otedola into Transcorp.
The share price of Transcorp has been responding positively, jumping from its stagnant N1.03 – 1.10 range and now trading at N2.95 as at Wednesday, April 26th.