Tycoons raise stakes in Nigeria’s biggest listed conglomerate

Bloomberg | Two of Nigeria’s richest men are battling for control of one of the country’s biggest conglomerates, with each raising their stakes dramatically.

Tony Elumelu, who has interests in banking, power, oil, and hospitality, raised his share in Transnational Corporation of Nigeria Plc., to 25.58 percent from 2.07 percent, according to a filing on the Lagos-based Nigerian Exchange on Thursday. A week earlier, business mogul Femi Otedola had acquired 5.52 percent of the company, commonly known as Transcorp.

Otedola did not previously own shares in Transcorp, and the acquisition would have made him the biggest individual shareholder in the firm, displacing Elumelu, who also serves as chairman of the company. Elumelu acquired the additional shares through his investment company Heirs Holdings Ltd.

Transcorp owns three power plants, which have a combined installed generating capacity of 2,000 megawatts. It also owns hotels in the capital, Abuja, the commercial hub Lagos and the southern city of Calabar. Through a joint venture with Heirs Holdings, Transcorp bought a 45 percent interest in OML 17 for US$800 million in 2021 from Royal Dutch Shell Plc.

On Wednesday, Transcorp announced earnings of 32 billion naira (US$69 million) in the three months to March, with a net income of 1.86 billion naira (US$4.01 million). The stock was up 4.75 percent as of 12.31 p.m. in Lagos. It is up 173 percent so far this year, according to data compiled by Bloomberg.

“I welcome Otedola’s investment in Transcorp,” Elumelu said in an interview with local broadcaster Arise TV on Wednesday. “Because the more people show interest in the company and invest in the company, the better for shareholders.”