Tony Elumelu: Otedola is my brother — he should be commended for investing in Transcorp

Tony Elumelu, group chairman of Transnational Corporation Plc (Transcorp), has commended Femi Otedola, the billionaire businessman, for his acquisition of a significant stake in the conglomerate.

Recently, Otedola acquired a 5.52 percent stake in Transcorp Plc to become the second largest shareholder of the company.

There have been reports that the billionaire has upped his stake to 6.3 percent.

Speaking in an interview with Arise TV on Wednesday, Elumelu said he welcomed Otedola’s investment in Transcorp and looked forward to working with him.

“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,” Elumelu said.

“He’s a man I admire and we call ourselves brothers. I welcome Femi, I call him FO or Ote-Dollar. I welcome his investment in Transcorp.

”We go on international roadshows and talk to investors to invest in our companies. I am happy to see an active indigenous investors community.

“I am happy that Femi Odetola is investing locally and he should be commended for that and I also welcome him for that.

“That is because the more people show interest in the activities, and performance of the company, the better for shareholders. You want to make your stock investors’ toast and I am happy that Transcorp is becoming investors’ toast.

“About 10 years ago before we took over Transcorp, people were not interested. People lost confidence in the company. Today under our leadership, Transcorp has consistently paid dividends in the last five years. There is a capital appreciation for the company.

“When friends and investing public invest in a public company like this, it is a validation and tells you they believe in your story, vision, management, leadership and competence.

“I like my friend (Otedola) coming on board and I look forward to working with him to take Transcorp to greater heights.”

TRANSCORP POWER NOT LISTING ON NGX ‘ANYTIME SOON’

Elumele also denied reports of planning to list Transcorp Power, a subsidiary of Transcorp Plc, on the Nigerian Exchange Limited (NGX) “anytime soon”.

“No (we are not listing), I hear that rumour from time to time, especially after some competing institutions were listed on the exchange. We are long-term players. We wanted to grow more and more significantly,” he said.

“There are a few more things we wanted to do in the power sector so that it can blossom.”

He, however, proceeded to confirm that Transcorp Power may be listed on the NGX in about five years on the condition that transmission lines and challenges with gas supply would have been fixed.

“We are looking for about five years from now to list on the NGX,” Elumelu said.

“We believe in the next five years, the transmission line will be fixed and gas supply to the sector would have improved significantly.”