Otedola Reveals How Tony Elumelu Took Over His Shares in UBA, Africa Finance Corporation
Billionaire businessman Femi Otedola has made shocking revelations about how fellow billionaire and owner of United Bank for Africa (UBA), Tony Elumelu, allegedly took over his shares in UBA and Africa Finance Corporation (AFC) after he went bankrupt in Nigeria.
In an official statement obtained by Investors King, Otedola disclosed that in 2005, while Elumelu was the Managing Director of Standard Trust Bank, he approached him for funds to acquire UBA. Otedola enthusiastically gave him $20 million, which was N2 billion at the time, to buy the necessary shares for the acquisition. After a short period, the share price moved up, and Otedola decided it was a good moment to sell and get out of the bank. However, Elumelu appealed to him to hold on to the shares as he was convinced that there were future prospects, and Otedola kept the shares.
Otedola also revealed that he became Chairman of Transcorp Hotel in 2007 with a shareholding of 5%, and unknowingly, Elumelu gradually started buying shares quietly. By the following year in 2008, Otedola went bankrupt in Nigeria, and Elumelu allegedly proceeded to take over his shares in UBA to service the interest on his loans. Elumelu also allegedly took over his shares in AFC, where Otedola was the largest shareholder.
Furthermore, Otedola disclosed that in 2012, Elumelu outbid him by offering to buy Ughelli Power Plant for $300 million after he had disclosed his intention to go into the power business. Otedola had offered to buy Transcorp Plc for N250 billion, but his offer was rejected.
Femi Otedola’s recent acquisition of 2.6 billion shares or 6.3% of Transcorp’s shares might be related to his revelation that Tony Elumelu took over his shares in UBA and Africa Finance Corporation. It has been alleged by an anonymous source that Elumelu paid Otedola a premium of 400% on Transcorp’s closing price to obtain his block of shares.
This would mean that Otedola received around N12.5 per share, resulting in a payout of approximately N32.5 billion for his 2.6 billion shares.
The revelations have raised eyebrows and stirred up tensions between the two business moguls. Otedola’s accusations paint Elumelu as a ruthless businessman who allegedly took advantage of his relationship with Otedola to take over his shares in UBA and AFC when he was vulnerable. It also raises questions about the fairness of business practices in Nigeria’s corporate sector.
Efforts to reach Elumelu for comment on the matter were unsuccessful. However, with Otedola’s allegations now in the public domain, it remains to be seen how Elumelu will respond and what actions will be taken by regulatory bodies to ensure transparency and accountability in the Nigerian business environment.
Femi Otedola Full Official Statement
In 2005, while Tony was the Managing Director of Standard Trust Bank he approached me to get funds to acquire UBA. I enthusiastically gave him $20million, which was N2 billion at that time to buy the necessary shares in UBA for the acquisition. After a short period of time the share price moved up and I decided it is was a good moment to sell and get out of the bank. However, Tony appealed to me to hold on to the shares as he was convinced that there were future prospects – so I kept the shares.
I became Chairman of Transcorp Hotel in 2007 with a shareholding of 5% and unknowingly Tony gradually started buying shares quietly.
By the following year in 2008 I went bankrupt in Nigeria. Tony proceeded to take my shares in UBA to service the interest on my loans and he also took over my shares in Africa Finance Corporation, where I was the largest shareholder.
Shortly after, Albert Okumagba informed me that an American firm wanted to acquire my shares in Transcorp, which I then agreed to sell. However, this supposed American firm turned out to be Tony Elumelu. The revelation of this prompted me to resign as Chairman of the hotel.
Years later in 2012 Tony said he wanted to see me so we met in my office where I had previously had a meeting with foreign investors who had not yet departed the premises. Curious to know, he asked what sort of meeting I had had and I disclosed that I wanted to go into the power business, specifically Ughelli Power Plant. Tony quietly went ahead to bid for Ughelli and he outbidded me by offering to buy the plant for $300million.
And as a some would say: the rest is history.
Fast forward to the present…
I offered to buy Transcorp Plc for N250 billion, but unfortunately, my offer was rejected. My goal was to maximize the company’s potential as a Nigerian conglomerate with a market cap of at least N2 trillion instead of the current N40 billion, but it seems some shareholders have a different vision.
As a businessman, I believe in healthy competition and market dynamics. Two captains cannot man a ship, and I respect the majority shareholder’s decision to buy me out. This is the nature of the game.
But let me be clear: my offer was made with the best intentions for Transcorp Plc and its shareholders. I saw an opportunity to unlock the company’s full potential and create value for everyone involved.
It’s important for investors to understand that free entry and free exit are crucial to healthy markets. The scramble for shares after my acquisition is a testament to the value that Transcorp Plc can offer, and I hope the company continues to thrive under new leadership.
My message to Transcorp Plc and its shareholders is this: I remain committed to the growth and success of Nigerian businesses, and I will always be looking for ways to create value for all stakeholders. Stakeholders are unfortunately always shortchanged by getting stipends while the owners and managers of the business live a jet set lifestyle, which is detrimental to the stakeholders. Thank you for the opportunity to engage in this exciting chapter of Transcorp’s history.
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.
GTBank’s CEO, Segun Agbaje, Makes N267.3 Million in Just Four Days as GTCO Shares Skyrocket
Segun Agbaje, the highly respected Group Chief Executive Officer of Guaranty Trust Holding Company Plc (GTBank), has witnessed an extraordinary surge in his wealth.
Over the course of just four days, Agbaje managed to rake in a staggering N267.3 million as the value of GTCO shares soared to new heights.
The Nigerian stock market was abuzz with excitement as data obtained from the Nigerian Exchange Limited (NGX) revealed a remarkable 8.71% increase in the value of GTCO shares during the trading period from Monday, May 15, 2023, to Thursday, May 18, 2023. Starting the week at N24.1 per share, GTCO shares experienced an upward trajectory, culminating in a closing price of N26.2 per share by Thursday, May 18.
As one of the major shareholders of GTBank, with a significant stake of 126.9 million (126,960,152) shares, both directly and indirectly, Agbaje’s stock value stood at N3.05 billion on Monday. However, by Thursday, it had skyrocketed by an impressive N33.2 billion, resulting in a handsome windfall of N266.6 million within just four days.
About Segun Agbaje
Segun Agbaje is a prominent figure in the Nigerian banking industry, serving as the Group Chief Executive Officer of Guaranty Trust Holding Company Plc (GTCo). With his exceptional leadership skills and strategic vision, Agbaje has steered GTCo to remarkable heights of success.
Known for his unwavering commitment to excellence, Agbaje has played a pivotal role in shaping GTCo into one of Nigeria’s leading financial institutions. Under his guidance, GTCo has consistently achieved impressive financial results and garnered recognition for its innovative products and services.
Agbaje’s wealth of experience in the banking sector, coupled with his strong business acumen, has earned him a reputation as a respected and influential leader. He is admired for his ability to navigate challenges and adapt to the dynamic nature of the industry.
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