“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,” Transcorp
said in a regulatory filing.
Mr Otedola, who now holds 2.2 billion shares, comes next to
UBA Nominees Limited in the ownership pecking order of the conglomerate, whose
businesses encompass energy, oil and gas, and hospitality.
The action clears the air around speculations that emerged
last week about a substantial share purchase by the energy magnate, the high
point being a single-day trading of 1.6 billion shares last Tuesday.
Transcorp’s shares gained 78.8 per cent in the nine days
between then and Thursday.
Mr Otedola is the majority owner of Ajaokuta-based Geregu
Power, formerly a government-owned facility, with an installed capacity of
435MW.
Afam Power, Transcorp’s most recent plant acquisition, is
more than two times bigger than that size at 966MW installed capacity.
Earlier on Thursday, Mr Otedola said the board of the
company brought forward the deadline of a previously announced close period to
suit insiders’ interest.
Close periods, the interval between when a publicly quoted
company completes its financial report and when it is issued to the public,
forbid insiders like directors and its major shareholders from trading on the
company’s shares.
“On April 18th, the company hastily announced that a board
meeting initially scheduled to be held on May 4th, 2023, had taken place on
April 17th, 2023.
“They then immediately approved the first quarter 2023
results and released them to the public,” Mr Otedola said in a statement.
He argued that Transcorp had declared a closed period from 1
April, which meant that no member of the board or management could purchase
shares of the company.
“However, by publishing the results on April 18th, the
closed period ended 24 hours later, allowing insiders in Transcorp to purchase
shares of the company,” he added.
Mr Otedola, who is the biggest shareholder of FBN Holdings,
the parent company of Nigeria’s oldest lender FirstBank, said the close period
would have ended in May, the originally scheduled deadline, if the original
arrangement had not been altered.
He added that the decision has opened the window for
insiders to acquire more of the company’s shares.
Following an unusually heavy buy pressure on the stock, the
company traded 2.8 billion units in the last nine days and its shares have
gained about 70 per cent within one week.
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