-
JenneteUgo Anya
- December 24, 2024
The Securities and Exchange Commission (SEC) has granted approval to Mr.Tony Elumelu, Dr. (Mrs.) Awele Vivien Elumelu, and Heirs Holdings Limited to increase their combined shareholding in Transnational Corporation (Transcorp) Plc to 35.94 percent.
This move, achieved through direct and indirect share purchases, underscores a significant consolidation of control within one of Nigeria’s leading conglomerates.
Mr. Tony Elumelu, who serves as the Chairman of Transcorp Plc, and his wife, Dr. Awele Vivien Elumelu, a Director on the board, jointly hold the largest shares in Heirs Holdings Limited, the principal shareholder of Transcorp.
In an official statement to the Nigerian Exchange Limited (NGX) recently, Atinuke Kolade, Group Company Secretary of Transcorp Plc, announced that the approval aligns with the board’s disclosure obligations, adhering to regulatory guidelines and corporate responsibilities to stakeholders.
The regulatory approval follows a share acquisition made on April 28, 2023, by HH Capital Limited, an investment vehicle of Heirs Holdings. During this transaction, HH Capital acquired 1,493,477,786 ordinary shares of Transcorp Plc at a weighted average price of ₦3.12 per share. This purchase raised the cumulative direct and indirect shareholding of Mr. Elumelu, Dr. Elumelu and Heirs Holdings Limited to 35.94 percent of the company’s share capital.
This level of ownership triggered the mandatory tender offer provisions under Nigeria’s Investment and Securities Act, 2007, and the SEC’s Rules and Regulations of 2013. Consequently, HH Capital sought and obtained SEC’s approval to make a tender offer for up to 2,032,399 fully paid and issued ordinary shares, representing an additional 0.02 percent of Transcorp’s issued share capital.
The offer will be made at a 0.25 percent premium to the opening price of Transcorp shares on the opening date of the tender offer.
This move marks a strategic step by the Elumelu-led consortium to solidify their influence in Transcorp Plc, positioning the conglomerate for sustained growth and value creation for its shareholders.