Nigerian Billionaire, Femi Otedola Accuses Fellow Businessman, Tony Elumelu Of Backstabbing Him To Buy His Transcorp Shares During Bankruptcy KossyDerrickBlog KossyDerrickEnt

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Tuesday, May 9, 2023

Nigerian Billionaire, Femi Otedola Accuses Fellow Businessman, Tony Elumelu Of Backstabbing Him To Buy His Transcorp Shares During Bankruptcy

Nigerian Billionaire, Femi Otedola Accuses Fellow Businessman, Tony Elumelu Of Backstabbing Him To Buy His Transcorp Shares During Bankruptcy. (Read More Here).

According to Premium Times, the statement read, “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 N2billion 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.

“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 outbid me by offering to buy the plant for $ 300 million.”

“And as some would say: the rest is history.” “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.

“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 $ 20 million, 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 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.”

Recently, Otedola acquired a 5.52 percent stake in Transcorp Plc to become the second largest shareholder of the company, but then sold out his entire holding to Tony Elumelu, the chairman of the group.

Elumelu had said he welcomed Otedola’s investment in the company 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… that shows the level of friendship we have.”

He went down memory lane on his relationship with Elumelu and his plans for Transcorp before he opted out because his bid was rejected.

“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,” Otedelo said.

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