The Transnational Corporation (Transcorp) has acknowledged the acquisition 5.52% of its shares by billionaire businessman Femi Otedola.
In a public statement signed by the company secretary, Funmi Olofintuyi, Transcorp pledged their “unwavering commitment” to superior stakeholders’ returns.
“In compliance with Chapter 17, Rule 17.13 of the NGX Issuers Rules, Transnational Corporation Plc hereby informs the Nigerian Exchange Limited (NGX) and the investing public of the recent acquisition of 5.52% of shares in the Company by Femi Otedola.
“The Company welcomes this expression of confidence in its leadership and management as we continue our unwavering commitment to superior stakeholders’ returns, anchored in our ideology of Africapitalism.
“Rest assured of our commitment to remain resolute in executing our Group’s strategy of making strategic investments in key sectors within the Nigerian economy, our transformation agenda and our ability to contribute positively towards building prosperity for all,” the statement said.
This development comes on the heels of Otedola releasing a statement in which he called on the Nigerian Exchange group to review some questionable steps that were taken by the company.
“Shareholders of the conglomerate may recall that on April 13th, Transcorp responded to NGX’s request to confirm media reports that an individual had acquired over 5% of the company’s shares,: he said.
“Although Transcorp did not explicitly acknowledge the acquisition, the management initiated a series of actions that have raised curious concerns. On April 18th, the company hastily announced that a board meeting initially scheduled to be held on May 4th, 2023, had taken place on April 17th, 2023.
“They then immediately approved the first quarter 2023 results and released them to the public. Is NGX aware of these actions by Trancorp?” He asked in the statement.
Otedola also raised concerns about the implications of these actions.
“While this may not appear to be alarming on the surface, we are concerned about the implications of these actions. Transcorp had declared a closed period from April 1st, which meant that no member of the board or management could purchase shares of the company.
“However, by publishing the results on April 18th, the closed period ended 24 hours later, allowing insiders in Transcorp to purchase shares of the company.
“If they had waited until May, as previously scheduled, the closed period may have been extended until next month, making it impossible for insiders to buy shares of Transcorp.”
He continued: “Therefore, any well-meaning investor may question whether the board and management of the company brought forward the closed period for personal reasons, or if this was done in the best interests of shareholders, or the best interests of individuals who are only interested in their selfish interests.
“We must ask, is the NGX aware of this action taken by Transcorp?” he queried.
Transcorp is one of Nigeria’s leading conglomerates with investments in the hospitality, power, and oil & gas sectors.
Chioma Kalu
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