Chairman Of United Bank For Africa (UBA) Tony Elumelu Stinks As Otedola Exposes “Can Of Worms, Treachery, Betrayals”
While the United Bank for Africa drew the anger of Nigerians by its inhuman roles during the experimental Central Bank of Nigeria’s cashless and new naira draconian policy, the the leadership of the bank seems to be laughing to scorn over the plight of Nigerians.
The masses had expected the billionaire businessman, Tony Elumelu, to play neutral over the vexatious and politically ethnic cleansing against some section of the country, but he was quick to post a video that went viral playing around with one of the candidates.
The most recent scene of Elumelu’s business game was an expose of his dirty deals authored by another established billionaire and oil mogul, Chief Femi Otedola.
NewsTrack Nigeria (newstrack.com.ng) garneres that Femi Otedola, in a statement he made available to The Cable News on Tuesday morning, went down memory lane on his relationship with Tony Elumelu and his plans for Transcorp before he opted out because his bid was rejected.
Otedola noted that he offered to acquire Transcorp Plc for N250 billion and take the company’s market capitalization to N2 trillion, but his bid was rejected.
Recently, Otedola acquired a 5.52 percent stake in Transcorp Plc to become the second largest shareholder of the company, but then sold out his entire holding to Tony Elumelu, the chairman of the group.
Elumelu had said he welcomed Otedola’s investment in the company and looked forward to working with him, adding, “He’s my wonderful friend. In fact, I only follow two people on Instagram: my wife and Femi Otedola. That shows the level of friendship we have.”
However, in a press statement by Otedola, he spoke for the first time about the events surrounding his bid to take over the company.
“In 2005, while Tony was the Managing Director of Standard Trust Bank, he approached me to get funds to acquire UBA. I enthusiastically gave him $20 million, which was N2 billion at the time, to buy the necessary shares in UBA for the acquisition. After a short period of time, the share price moved up, and I decided it was a good moment to sell and get out of the bank. However, Tony appealed to me to hold on to the shares as he was convinced that there were prospect, so I kept the shares,” Otedelo said.
“I became Chairman of Transcorp Hotel in 2007 with a shareholding of 5%, and unknowingly, Tony gradually started buying shares quietly.”
“By the following year, in 2008, I went bankrupt in Nigeria.” Tony proceeded to take over my shares in UBA to service the interest on my loans, and he also took over my shares in Africa Finance Corporation, where I was the largest shareholder.
“Shortly after, Albert Okumagba informed me that an American firm wanted to acquire my shares in Transcorp, which I then agreed to sell. However, this supposed American firm turned out to be Tony Elumelu. The revelation of this prompted me to resign as chairman of the hotel.
“Years later, in 2012, Tony said he wanted to see me, so we met in my office, where I had previously had a meeting with foreign investors who had not yet departed the premises. Curious to know, he asked what sort of meeting I had had, and I disclosed that I wanted to go into the power business, specifically Ughelli Power Plant. Tony quietly went ahead to bid for Ughelli, and he outbid me by offering to buy the plant for $300 million.
“And as some would say, the rest is history.”
“Fast-forward to the present…
“I offered to buy Transcorp Plc for N250 billion, but unfortunately, my offer was rejected.” My goal was to maximize the company’s potential as a Nigerian conglomerate with a market cap of at least N2 trillion instead of the current N40 billion, but it seems some shareholders have a different vision.
“As a businessman, I believe in healthy competition and market dynamics. Two captains cannot man a ship, and I respect the majority shareholder’s decision to buy me out. This is the nature of the game.
“But let me be clear: my offer was made with the best intentions for Transcorp Plc and its shareholders.” I saw an opportunity to unlock the company’s full potential and create value for everyone involved.
“It’s important for investors to understand that free entry and free exit are crucial to healthy markets.” The scramble for shares after my acquisition is a testament to the value that Transcorp Plc can offer, and I hope the company continues to thrive under new leadership.
“My message to Transcorp Plc and its shareholders is this: I remain committed to the growth and success of Nigerian businesses, and I will always be looking for ways to create value for all stakeholders. Stakeholders are unfortunately always shortchanged by getting stipends while the owners and managers of the business live a jet-set lifestyle, which is detrimental to the stakeholders. Thank you for the opportunity to engage in this exciting chapter of Transcorp’s history.”
Elumela had taken to his tweeter to complain about the suffering of Nigerians despite the huge natural resources at it disposal.
With his super capitalist orientation and disposition, can ever be merciful to the poor. Agreeably, like, one social crusader rightly said, Elumelu’s Foundation is only a means to an end; fostering his interest and covering his “capitalist pillaging prowess.”
