Nigerian Billionaire Femi Otedola Reveals Real Reason Behind Transcorp Share Sale
Nigerian billionaire investor and CEO of Forte Oil, Femi Otedola, recently made headlines for purchasing and then selling about 6% shares in Transcorp. In a press release, Otedola explained that he had originally invested $20 million in acquiring shares in UBA for an acquisition in 2005. Although he sold the shares at a profit, Otedola was advised by Tony Elumelu, the MD/CEO of Standard Trust Bank at the time, to keep them. Meanwhile, Elumelu quietly began purchasing shares in Transcorp Hotel, of which Otedola later became the chairman in 2007 with a 5% shareholding. However, Otedola later experienced financial difficulties and had to hand over his shares in Africa Finance Corporation and UBA to Elumelu to service the interest on his loans. Later, an alleged American company offered to buy Otedola’s shares in Transcorp, but it turned out that it was actually Elumelu behind the offer. This discovery led Otedola to resign as chairman of the hotel. Although Otedola and Elumelu had publicly displayed fondness for each other, Otedola’s statement suggests that there may have been more to their relationship than meets the eye.