Nigerians react as Otedola opens up on Transcorp shares deals with Elumelu

Article summary

• Nigerians have taken to their Twitter handles to express divergent views on Transcorp share deals between Otedola and Elumelu.
• Mr. Otedola and Mr. Elumelu’s Transcorp affair dates back to about 16 years ago when the former was the chairman of the company and Elumelu was the MD/CEO of Standard Trust Bank.
• A market operator advised that Dangote should intervene and settle the differences before it starts hurting the capital market.

Some concerned Nigerians have taken to their Twitter handles to express divergent views as the Billionaire investor, Femi Otedola revealed details that might have inspired his desire to acquire about 6% shares in Transcorp and also his decision to sell the 2.6 billion shares bought in separate transactions, to Mr. Tony Elumelu.

According to a press release seen by Nairametrics, the shocking details suggest Mr. Otedola and Mr. Elumelu’s Transcorp affair, dates back to about 16 years ago when the former was the chairman of the company and Elumelu was the MD/CEO of Standard Trust Bank.

Nairametrics reported that Mr. Otedola initially acquired a 5.03% stake in the company back in March, making him the second largest shareholder of the company, but as Otedola increased his stake to just over 6%, Tony Elumelu via his special purpose vehicle, Heirs Holdings also upped his stake taking his ownership of the conglomerate to about 25.5%.

What Nigerians are saying

Reacting to the development, a Twitter user identified as @alefreewayy said:

• “I see no peace in this world because no one is comfortable with his present condition because these two men made young businessmen and women feel like business is just all about love the game hard pass relationship when toxic”.
• A tweet identified as @novoafricano said: “FO is telling stories. He owed UBA money and refused to surrender his AFC shares as collateral for a long while until UBA dispatched the Energy Bank head and one other person to meet up with him in London as he claimed he was running from Aliko that wanted to assassinate him”. 

Another Twitter user identified as @jeomaltd also reacted to the post saying:

• “Everything that has the beginning with rich Nigerians always has a bad end. Otedola has been cruising on his father’s corrupt money. People’s blood went on that money. So it’s Otedola’s time today, it might be Tony tomorrow depending on how he makes his money”.

Similarly, a tweet identified as @BigPapysmall said they are the Nigerian Oligarchs that buy and sell state-owned resources.

• “These guys are the Nigerian Oligarchs they buy and sell state-owned resources at a giveaway fee. This is no news, it’s a family business just like the MRS deal between Dantata, Otedola, and Chevron”. 

Another Twitter user identified as @Victoriaascert1 said this is Femi’s account and Tony’s side has not been heard.

• “The world of business is unfortunately a shark-infested red ocean where dogs eat dogs & only the most brutal & ruthless survive. This is Fem’s account & Tony’s side of the story has not been heard. But this is the playbook in the corporate biz world & Femi is also not a saint”.

A tweet identified as @ChukwumaOliver2 said:

• Oh yeah. The plot is thickening. Gradually, it’s moving from the zero-sum game politics of Nigeria to the business & economic sphere. In this game, altruism is slaughtered on the slab of greed, selfishness, betrayals, animus, &dog-eat-dog. Tony Elumelu can only be cautious from May 29, 2023”.

Another Twitter user Oghenekaro Jite@Loudmic4all said it is obvious there was a rift between both men.

• “It was obvious there was a rift between both men. Although Mr Tony tried to douse the tension in his interview with Arise TV but the harder he tried the more his body language betrays him. And the next day he increased his stake to 25%. Let’s wait to hear from him”

A tweet identified as @proudlylizy said:

• “Most times, it better we do our stuff secretly, I don’t blame when people want to japa , you just see pictures and you are like, really and I saw him or her last week. The power plant would have been Otedola, if he has not opened up to Tony about the deal. lessons learned”

Some Nigerians have also taken to their Instagram handles to express their views on the development.

An Instagram user identified as Damii-ix said:

• “How people are praising Tony Elumelu for betraying the trust Otedola (his friend) had in him and people calling him smart amazes me,  to him he was trying to be smart, but it doesn’t change the fact that he betrayed Otedola”.

Another Instagram user, identified as olatunjioluwasina said:

• “Same thing I told a friend of mine, people tagged betrayal as being smart. So unfortunate”.

Louis scatter said:

• “Nothing like betrayal here, he no chop him money nah….This is not a yahoo boy and client business”.

Another user known as  Awoigwekalu said:

• “Nothing like betraying hers. If Tony was the seller, it will be a betrayer, but both of them went for it and luckily Tony’s bid was okay”.

However, Mr. David Adonri, Executive Vice Chairman of Hicap Securities Limited in an Exclusive chat with Nairametrics said that the conflict of interest has crept into their interpersonal business relationship. It is not unlikely that we are seeing a battle of supremacy between Femi and Elumelu.

• “Femi Otedola, Tony Elumelu, Jim Ovia, and Aliko Dangote are friends and have an interpersonal business relationship. My advice is that their leader who is Dangote should intervene and settle their differences before it starts hurting the capital market,” he said.