Article Summary
- Transcorp has confirmed that Femi Otedola acquired a 5.5% ownership of the company as Nairametrics earlier reported
- The news caused Transcorp’s shares to rise by 75% in less than a week.
- Transcorp’s full-year financial results for 2022 showed a profit of N7.2 billion, up from N3.2 billion the previous year, while Q1 2023 profits before tax fell 50.8% to about N2.8 billion.
Transnational Corporation Plc has confirmed that Nigerian business mogul and billionaire, Femi Otedola has acquired about 2.245 billion shares of the company.
Nairametrics first reported the 5.5% ownership in an exclusive article published on the 12th of April 2023. Transcorp has now confirmed this via a press statement issued on the Nigerian Exchange as is statutorily required.
The statement signed by Funmi Olofintuyi, Company Secretary (Ag.) noted that in compliance with Chapter 17, Rule 17.13 of the NGX Issuers Rules, Transnational Corporation Plc announced to the Nigerian Exchange Limited (NGX) and the investing public that Otedola acquired the shares which represent 5.52%.
- “As noted in our previous communication, 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 noted.
Bulls after Transcorp
Nairametrics first reported that Femi Otedola acquired about 2.245 billion shares of Transnational Corporation Plc, becoming the second largest shareholder of the company based on available records.
- Since the acquisition was reported by Nairametrics, the shares of the company have gone from N1.4 to N2.45 per share gaining a whopping 75% return in just under a week.
- The stock continues to dominate in volumes and price increases as investors envisage a jostle between two of Nigeria’s most influential businessmen.
- Nairametrics estimates about 1.2 billion in Transcorp shares has crossed this week as investors continue to assign higher multiples to its earnings in the wake of the acquisition.
Transcorp Results
Transcorp has released its financial results for the full year ended December 31, 2022, demonstrating significant improvements in its major income lines.
- Its profit after tax for the group fell from N28.3 billion to N16.8 billion.
- However, the company posted a profit of N7.2 billion higher than the N3.2 billion posted a year earlier.
- Transcorp also released its first quarter results ahead of schedule showing group profits before tax fell 50.8% to about N2.8 billion. HoldCo profits also declined to N350 million from N1.24 billion.
