By Ojukwu Emmanuel Chiadikaobi
In a significant financial move, billionaire tycoon Femi Otedola has secured shares worth N6 billion in Dangote Cement Plc, according to information disclosed to PREMIUM TIMES by a reliable source on Thursday.
The shares were acquired in Mr Otedola’s name, consolidating his position as a major player in the Nigerian business landscape. Dangote Cement, Sub-Saharan Africa’s largest cement producer, recently surpassed Airtel Africa to become Nigeria’s top company by market capitalization, currently valued at N8.35 trillion. The company has witnessed an impressive 81.4% return in the last 52 weeks, with 17.04 billion outstanding shares.
Dangote Industries Limited, led by Africa’s richest person, Aliko Dangote, maintains control over 85.8% of Dangote Cement’s shares. To enhance its stock valuation, Dangote Cement executed two tranches of share repurchases between 2020 and 2022, repurchasing a total of 166.9 million shares.
Mr Otedola, a prominent figure in the business world, holds a majority stake in Geregu Power Plc, valued at N1.2 trillion. In 2021, he strategically acquired substantial volumes of FBN Holdings shares, making him the largest shareholder in the parent company of Nigeria’s oldest commercial bank, First Bank.
With a 5.57% stake in FBN Holdings, where he serves as a director, Mr Otedola played a pivotal role in the company’s market value surpassing the N1 trillion mark before a slight dip to N967.4 billion on Thursday, reflecting a 2.53% decrease.
Last April, Otedola made a notable purchase of Transnational Corporation of Nigeria shares, amassing 2.6 billion units, equating to a significant 6.3% shareholding. However, a swift maneuver by Tony Elumelu, the largest shareholder of United Bank for Africa, secured his position as the top shareholder of Transcorp, retaining control with a 25.9% stake after acquiring more shares.
In an unexpected turn, Otedola later opted to sell his stake to Elumelu, relinquishing his pursuit of the top ownership position in Transcorp. The dynamic landscape of Nigerian business ownership continues to unfold, with these strategic moves shaping the hierarchy of influential shareholders.