Otedola’s Multi-Billion Naira Payday: Transcorp Shares Sold to Elumelu at Premium Price
Billionaire businessman Femi Otedola has reportedly cashed out on a multi-billion naira payout by selling his shares in Transcorp to fellow tycoon Tony Elumelu at a premium price.
The deal, which is believed to have taken place on Thursday, saw Elumelu buy a significant stake in Transcorp from Otedola. The latter had emerged as the largest shareholder after silently acquiring 2.6 billion shares, or 6.3% of the company.
An anonymous source claiming to be in close contact with both billionaires revealed that Elumelu allegedly paid Otedola a premium of 400% on Transcorp’s closing price on Thursday to obtain his block of shares.
This suggests that Otedola, who held 2.6 billion shares or 6.3% of the firm, received approximately N12.5 per share and walked away with a payout of N32.5 billion.
The move comes amidst a tense corporate battle between the two business moguls, with rumors circulating that Elumelu had attempted to reach out to Otedola after he emerged as the largest shareholder to discuss a possible buyout.
Initially, Otedola, who was said to be in New York at the time, rejected the offer, but a 400% premium on shares he acquired at about N2.6 a unit may have forced his hand.
According to sources close to Otedola, the chairman of Geregu Power was interested in taking control of Transcorp’s lucrative power assets from Tony Elumelu. Geregu Power, which is publicly-traded, operates one power plant in Kogi State with an installed capacity of 435 MW and a market cap of over $1.6 billion.
Meanwhile, Transcorp, which owns two power plants in Delta and Rivers states with a combined capacity of over 2,000 MW, has a market cap of less than $300 million.
Analysts had long pointed out that Transcorp was significantly undervalued. In 2013, Otedola acquired the underperforming State-owned power asset with an effective capacity of less than 100 MW and raised its capacity to 435 MW. Geregu Power generates 70-80% of the power supplied into the grid.
Recently, Geregu Power doubled its shares in just six months and paid out N20 billion ($43.5 million) in dividends to shareholders for the 2022 fiscal year.
Top 7 Richest People in The World Earned $16 Billion in the Last 24 Hours
Elon Musk, the wealthiest individual in the world, along with six others, collectively earned $16.054 billion within the past 24 hours as global stocks rebounded following an agreement reached by United States lawmakers to suspend the nation’s debt ceiling for the next two years.
On Friday, Elon Musk, the wealthiest individual in the world, along with six others, collectively earned $16.054 billion within the past 24 hours as global stocks rebounded following an agreement reached by United States lawmakers to suspend the nation’s debt ceiling for the next two years.
Elon Musk led the pack, earning $4.61 billion, bringing his year-to-date increase to $62.5 billion and raising his net worth to $199 billion.
Bernard Arnault, the second richest person, saw his net worth rise by $3.99 billion to $29 billion, while Jeff Bezos, the well-known owner of Amazon, added $1.64 billion, resulting in a year-to-date change of $40.9 billion and a net worth of $148 billion. Bill Gates followed with an increase of $1.94 billion, placing him as the fourth richest individual with $128 billion.
Larry Ellison’s net worth surged by $419 million. Steve Ballmer and Warren Buffet gained $925 million and $2.53 billion, respectively.
Earlier this week, Elon Musk reclaimed his title as the richest person in the world, surpassing Bernard Arnault.
Musk had temporarily lost the top spot in December due to a drop in Tesla’s stock value following his $44 billion acquisition of Twitter. A significant portion of Musk’s wealth is tied to Tesla’s stock, and he also serves as the CEO of SpaceX and owns Twitter.
Following a notable two-day visit to Shanghai, where he met with Chinese officials amidst ongoing U.S.-China tensions, analysts noted the importance of the Chinese market for Tesla.
Chinese Foreign Minister Qin Gang assured Musk of China’s openness to foreign businesses, prompting Musk to express interest in further expanding in China. This bolstered Tesla stock by 3.11 percent or $6.45 to $213.97 on Friday.
Elon Musk Reclaims Position as The Richest Man in The World
Tesla and Twitter CEO Elon Musk has reclaimed his position as the richest man in the world.
Tesla and Twitter CEO Elon Musk has reclaimed his position as the richest man in the world.
Musk’s net worth increased by 40.3% this year, which has seen him currently worth $192 billion after shares of his electric automaker Tesla rose about 24% in May. Also on Wednesday, 31, 2023, shares of Tesla traded at $203.93.
The Tesla billionaire who reportedly earned over $1 billion in the last 24 hours, dethroned the CEO of LVMH Bernard Arnault who is worth $187 billion, from the first position, after occupying the second spot for over six months.
A decline in the net worth of Arnault can be attributed to the loss of $11.2 billion, which he reportedly lost in one day. The stock blow is said to be the biggest the company has seen in over a year. According to Bloomberg, the stock’s fall caused the European Luxury sector to be slashed by roughly $30 billion.
Recall that Arnault surpassed Musk in December last year, after his wealth increased due to a boom in luxury goods sales that helped drive up LVMH’s, stock price. LVMH, one of the world’s biggest conglomerates, is home to brands including Louis Vuitton, Dior, and Celine.
Musk on the other hand, has enjoyed a meteoric rise up the world’s rich lists in recent years as the majority of his fortunes are directly linked to Tesla, his electric automaker company, which he owns about 13%.
Investors King understands that both Musk and Arnault have continued to be in head-to-head competition for some time now, as both billionaires have on several occasions displaced each other on the top global billionaire ranking.
Notably, Musk doesn’t seem to slow down in breaking new ground, after he made his first trip to the world’s second-largest economy, China, on Wednesday, in over three years.
Musk met with China’s industry minister Jin Zhuanglong and discussed the development of electric vehicles. In a statement on Tuesday, China’s foreign ministry said that Musk was willing to expand the car maker’s business in the country, which is Tesla’s biggest market after the US.
Bloomberg Finally Lists Abdulsamad Rabiu on Billionaire Index, Ranked 287th Richest Man
One of Nigeria’s richest entrepreneurs, investors and philanthropists, Abdulsamad Rabiu, has made it to Bloomberg Billionaire Index for the first time.
The global leading business platform ranked Rabiu as the 287th richest man alive and the second richest Nigerian after Alhaji Aliko Dangote with a $7.63 billion net worth.
In the last 24 hours, Rabiu lost $40 million to stock swing but has gained $1.16 billion in net worth year to date, according to the data available on Bloomberg.
Rabiu, 62, is the founder and chairman of BUA Group, a leading conglomerate based in Lagos, Nigeria. The group owns Bua Cement, Nigeria’s second-largest cement producer after Dangote Cement and had revenue of $847 million or N361 billion in the 2022 financial year.
Bua Group is also the proud owner of the largest pasta and flour plant, BUA Foods, listed on Nigeria’s exchange in 2022.
The majority of Rabiu’s fortune is derived from his stake in BUA Cement, the second-largest cement producer in Nigeria, according to the company website. He owns about 98% of the company directly and through three other companies, according to its 2023 first-quarter report and the 2022 annual report.
He also controls a 93% stake in BUA Foods, which owns the largest pasta and flour plant in Nigeria, according to the company’s 2023 first-quarter report and the 2022 annual report.
Other businesses within the BUA Group are not included in the valuation because requisite details are not known.
A liability is included based on an analysis of costs for acquisitions, insider transactions, taxes, market performance and charitable contributions.
Rabiu was born in 1960 in Kano, a city in northern Nigeria. His late father, Isyaku Rabiu, founded Isyaku Rabiu & Sons which spanned manufacturing, finance and real estate.
After studying Economics in Capital University in Ohio, he returned to Nigeria at the age of 24 and oversaw the family business.
Rabiu founded BUA Group in 1988, importing food, iron and steel. The company became a manufacturer of cement and sugar through series of mergers, including the acquisition of Cement Company of Nothern Nigeria (CCNN) in 2009.
BUA Cement began trading publicly in Nigeria in January 2020. BUA Foods went public two years later in January 2022.
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