Elumelu Betrayed Me, Otedola Reveals In Ongoing Boardroom War

Femi Otedola has revealed that his relationship with  Tony Elumelu has been one of serial betrayal since they first met in 2005.

His aborted quest to take over Transcorp, recently, is seen as part of his effort to pay Elumelu back in his own coin, those watching the boardroom war between the two businessmen think.

Otedola, recently, bought over five percent of the shares of the conglomerate in his quest to become the second largest shareholder in the company.

His move led to suggestions that he was planning to depose Elumelu as the largest shareholder and Chairman.

In a statement Otedola released on Tuesday, the former diesel magnate claimed that he offered to buy the company for N250 billion, but his offer was rejected.

If he had been allowed to purchase the company, the businessman said, he has the potential to take the total value to N 2trillion instead of the current value of N40 billion.

Otedola’s revelation, according to those watching what is going on in the business community, is an indication that he’s unhappy with what transpired between him and Elumelu in their quest to take over the nation’s blue chip company.

Explaining his relationship with Elumelu, who is also the Chairman of United Bank of Africa, Otedola said the former had stabbed him on the back many times.

For instance, he said Elumelu eased him out of UBA as one of the major shareholders after he loaned the former $20 million to start the bank in 2005.

He said Elumelu also quietly bought his shares in Africa Finance Corporation, AFC, Transcorp Hotel, and others using proxies.

Here, in part, is Otedola ‘s statement which many say is a bombshell that will dominate discussion in the nation’s busy sector for a long time.

“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 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.”

Meanwhile, those that know Otedola, who is also the Chairman of Geregu Power, said he’s likely to relaunch his quest to take over Transcorp in the future.

“He’s not the type that chickens out easily. He will fight back soon,” said a close associate and Managing Director of a popular company in Lagos.

must have been part of his effort to pay Elumelu back in his own coin, those watching the boardroom war between the two businessmen said.

Otedola recently bought over five percent of the shares of the conglomerate in his quest to become the second largest shareholders in the company.

His move led to suggestion that he was planning to depose Elumelu as the largest shareholder and Chairman.

In a statement he released on Tuesday, the former diesel magnate claimed that he offered to buy the company for N250 billion, but his offer was rejected, he said.

If he had been allowed to purchase the company, the businessman said he has the potential to take the total value of the company to N 2trillion instead of the current value of N40 billion.

Otedola ‘s revelation, according to those watching what is going on in the business community, is an indication that he’s unhappy with what transpired between him and Elumelu in their quest to take over the nation’s blue chip company.

Explaining his relationship with Elumelu who is also the Chairman of United Bank of Africa, Otedola said the former had stabbed him on the back many times.

For instance, he said Elumelu eased him out of UBA as one of the major shareholders aftr he borrowed the former $20 million to start th3 bank in 2005.

He said Elumelu also silently bought his shares in Africa Finance Corporation, AFC, Transcorp Hotel, and others using proxies.

Here is Otedola ‘s statement which many say is a bombshell that will dominate discussion Iin the nation’s busy sector for a long time.

The statement reads in part: “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.”

Meanwhile, those that know Otedola, who is also the chairman of Geregu Power said he’s likely to relaunch his quest to take over Transcorp in the future.

“He’s not the type that chickens out easily. He will fight back soon,” said a close associate and Managing Director of popular company in Lagos.