Billionaire Banter: Dangote Invites Otedola to Consider Corporate Takeover Attempts

During the Dangote Cement customers’ appreciation event in Lagos on Friday, Aliko Dangote, the President/Chief Executive of Dangote Industries Limited, expressed openness to his friend and fellow billionaire businessman, Femi Otedola, attempting a corporate takeover of Dangote Cement.
During the event, while introducing dignitaries, Aliko Dangote mentioned Femi Otedola, stating, “We must also welcome our newest shareholder, Femi Otedola. There are people who fear that he is going to do the same thing he did at Transcorp; I say he’s welcome.”
On Monday, Femi Otedola confirmed in a statement his “significant acquisition of shares in Dangote Cement,” emphasizing that this strategic investment reflects his confidence in the company’s ability to generate foreign exchange for Nigeria and his commitment to supporting businesses that bolster the country’s economic resilience. Otedola highlighted Dangote Cement’s advantageous position with two export terminals, which presents a substantial opportunity to earn foreign exchange vital for Nigeria’s economy. He also noted the company’s pan-African presence, making it an ideal investment choice.
In April 2023, Otedola made a significant move by acquiring a 5.52 per cent stake in Transcorp Plc, positioning himself as the second-largest shareholder of the company. At that time, he trailed behind United Bank for Africa nominees, who held approximately 9.25 per cent of the company’s shares as of December 2022.

Confirming the deal in a tweet, Otedola expressed his anticipation, stating, “Following this acquisition, I look forward to working with the board and management of Transcorp to realize the amazing future potential of the corporation.”

Initially perceived as a positive development, both the Chairman of Transcorp, Tony Elumelu, and the firm issued public statements affirming the value proposition of the interests in the company. However, the sentiment surrounding the acquisition shifted when Otedola decided to sell the shares he had purchased.

In a statement, Otedola disclosed that his offer to purchase Transcorp for N250 billion was declined. He explained that he had acquired shares in the organization because he believed in its potential to reach a valuation of N2 trillion. Otedola emphasized his belief in healthy competition and market dynamics, acknowledging the decision of the majority shareholder to buy him out, stating, “This is the nature of the game.”

Meanwhile, during the week, Dangote Cement achieved a significant milestone by becoming the first listed company to surpass N10 trillion in market capitalization. By the end of trading on Friday, its market capitalization stood at N11.827 trillion, with each unit of its securities priced at N694.1.