Femi Otedola has taken his stake in Transcorp to 6.3%: ‘“We write to inform you that our client Femi Otedola (C4430272AP) has acquired additional unit of Transcorps shares that brings his percentage holdings with us to 5.8…Stanbic IBTC Stockbrokers Limited, in its own letter, informed Africa Prudential the energy magnate procured shares… That takes his entire holding in Transcorp to 6.3 per cent or 2.6 billion shares’.
This is very significant and opens up a new playbook on how to build wealth in Nigeria. From the days of Templeton to Carlos Slim and Buffett, men and women have built empires purely by picking stocks in public exchanges.
Otedola’s controlling command of First Bank parent company, and now closing on Transcorp, makes him one of the most significant investors in modern Nigeria because these companies are critical and important. First Bank is the fulcrum of Nigerian banking while Transcorp is an evolving industrialized conglomerate with assets in major sectors of the economy.
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When you add the power company, Geregu Power PLC, you will agree that Otedola belongs to the Elite 8 (you know them) of corporate Nigeria. For his stock picking sagacity over the last six months, Tekedia honours him as Nigeria’s Businessperson of H1 2023 (first half of 2023).
That said, I want to see Otedola execute this playbook for the long-term as that is how legends are anointed in markets. Why? Many investors will track his positions right now, and he cannot afford to just exit anyhow, leaving them in the cold! That must not happen!
Comment on Feed
Comment 1: Trying to find any information about his playbook. Silent but effective
My Response: He likes companies which are freely floating and dominance is assumed by sheer financial war chest. For example, you can decide to become the highest shareholder in Transcorp, and you can start buying. The same applies to FBN, parent of First Bank.
But if you want to dominate Dangote Cement, that is not possible because of the structure. So, Otedola picks companies and those firms make it possible for him to take a frontal position and the only defense is that you need to fight with more money. That is his playbook. Of course, he likes A-list assets.
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Otedola is an investor, once your money attains certain critical mass, all you need is markets awareness, and you will keep compounding value.
It doesn’t work for small guys, they have too many distractions.
Just like the FBN transaction,I don’t see Otedola staying long in the Transcorp take over.He is the smartest investor at the moment in Nigeria.
His entry into Transcorp transaction will see the stock of Transcorp rise more than double what he bought it which will attract more investors into buying their shares then he will sell off his investment leaving part of his profit their as his share of the portfolio.
Transcorp,owns oil wells 25km from forcados oil terminal…this makes export of gas and crude so convenient..
Transcorp may also process their crude and liquify their gas for export.
Transcorp owns oil wells in port Harcourt…oml 17..
So imagine the gas feeding Transcorp power stations and generating power in afam and ughelli…
Over 2000Mw at the moment…
So with 40 billion share floating, proper management can assure a share price of 100 naira for Transcorp, which is a market value of 4 trillion naira..given that BUA foods is 1.8trillion valuation at the moment