Elumelu Backstabbed Me, Went After My Shares During My Bankruptcy – Otedola
Billionaire businessman Femi Otedola has spoken about how he was allegedly betrayed by his friend, Tony Elumelu, in their business dealings.
For the first time since acquiring and selling his Transcorp shares on Tuesday morning, the businessman reflected on his relationship with Tony Elumelu.
Otedola stated that he offered N250 billion to acquire Transcorp Plc, bringing the company’s market capitalisation to N2 trillion, but his bid was rejected.
Remember that Otedola recently purchased a 5.52 percent stake in Transcorp Plc, becoming the company’s second largest shareholder, but then sold his entire stake to Tony Elumelu, the group’s chairman.
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Elumelu had previously stated that he welcomed Otedola’s investment and looked forward to working with him, adding, “He’s my very good friend.” In fact, I only follow two people on Instagram: my wife and Femi Otedola… which demonstrates how close we are.”
Otedola, on the other hand, spoke for the first time in a press statement about the events surrounding his bid to take over the company.
“In 2005, while Tony was the Managing Director of Standard Trust Bank, he approached me about raising funds to buy UBA. I enthusiastically gave him $20 million (N2 billion at the time) to purchase the necessary UBA shares for the acquisition.
After a short period of time, the share price increased, and I decided it was time to sell and exit the bank. However, Tony persuaded me to keep the shares because he was convinced of their future potential, so I did,” Otedelo said.
“I became Chairman of Transcorp Hotel in 2007 with a 5% stake, and Tony gradually began quietly buying shares.”
“I went bankrupt in Nigeria the following year, in 2008.” Tony then took over my shares in UBA to service the interest on my loans, as well as my shares in Africa Finance Corporation, of which I was the largest shareholder.
“Shortly afterwards, Albert Okumagba informed me that an American firm wanted to buy my Transcorp shares, which I agreed to sell.” This ostensibly American firm, however, turned out to be Tony Elumelu. The discovery of this compelled me to resign as Chairman of the hotel.
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“Years later, in 2012, Tony said he wanted to see me, so we met in my office, where I had just finished a meeting with foreign investors who hadn’t yet left.” Curious, he inquired about the nature of my meeting, to which I replied that I wished to enter the power industry, specifically the Ughelli Power Plant.
“And the rest, as they say, is history.”
“Now, fast forward to the present…
“I offered to buy Transcorp Plc for N250 billion, but my offer was turned down.” My intention was to maximise the company’s potential as a Nigerian conglomerate with a market capitalization of at least N2 trillion rather than the current N40 billion, but it appears that some shareholders have a different vision.
“I believe in healthy competition and market dynamics as a businessman.” Two captains cannot man a ship, and I respect the decision of the majority shareholder to buy me out. This is how the game works.
“However, let me be clear: my offer was made with the best interests of Transcorp Plc and its shareholders in mind.”
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