- Dangote, BUA Group In Messy Battle Royale
- How Otedola, Elumelu Fell Out Over Transcorp Plc
The business environment globally is hostile, tough and fierce with the business climate in Nigeria no different. It is replete with several battle royale between billionaire businessmen battling for the soul of different businesses in the country.
The recent face-off between billionaire businessmen, Aliko Dangote of the Dangote Group vs Abdul Samad Rabiu of the BUA Group has again brought to the fore this age-long battle royale.
The Matrix profiles some of the billionaire business battle royale in recent times.
Aliko Dangote VS Rabiu Abdul Salam
Two of Nigeria’s leading conglomerates, Dangote Industries Limited (DIL) and BUA Group have resumed their hostilities over market control with accusations and counter-accusations flying around.
DIL and BUA Group have a long history of rivalry between them as both companies have been engaged in running battles over market control in different sectors of the economy ranging from sugar, salt, cement, fertilisers and others.
While DIL has pointedly accused BUA Group of being behind a malicious campaign of calumny against it by masquerading as a concerned citizen, BUA Group on the other hand recounted its journey of resilience and endurance against the antics of Dangote Industries Limited aimed at running it out of business.
The face-off is set to intensify in the coming days.
Femi Otedola Vs Tony Elumelu
A recent and highly publicized feud unfolded between Femi Otedola and Tony Elumelu. It began when Otedola attempted to acquire a majority stake in Transcorp Plc, a Nigerian conglomerate.
This battle began around mid-April 2023 when Otedola ventured into Elumelu’s territory by acquiring 5.52 per cent ownership of Transnational Corporation (TransCorp).
The acquisition cost Otedola N3.14 billion (based on the share price of Tuesday, April 11, 2023) and made him one of the major shareholders in TransCorp.
Immediately the acquisition made headlines, analysts predicted a hot chase at Elumelu who had the controlling shares of the diversified investment firm and also chaired the board.
Although Elumelu had welcomed the investor in a manner that suggested he believed in “the more, the merrier”, attitude, subsequent events showed it was really not so.
Within a few days, Elumelu fought back by acquiring an additional 9.7 billion shares in separate deals to ramp up his combined stake in the group to 10.5 billion shares, or 25.9 percent, cementing his position as Transcorp’s main shareholder.
Otedola eventually sold his TransCorp shares with a premium to Elumelu, putting an end to the drama that had played out.
Reacting to the hostile battle, Johnson Chukwu, the GCEO of Cowry Assets Limited described it as a contest of pride as both could have existed as shareholders instead of trying to buy each other out.
“For me, it is a contest of pride because the two of them could have co-existed as shareholders in Transcorp they should have brought in their wealth of experience and network of connections to even further the business interest of that company instead of the unnecessary contest of who would be the core investor” he disclosed.
Femi Otedola VS Jimoh Ibrahim
In 2007, a fierce corporate showdown erupted between Nigerian billionaires Femi Otedola and Jimoh Ibrahim over the ownership of African Petroleum Plc (AP).
Otedola, then the chairman of AP, accused Ibrahim, the managing director, of using his position for personal gain. In retaliation, Ibrahim alleged that Otedola aimed to wrest control of the company.
The heated battle eventually reached the Supreme Court of Nigeria, where Otedola emerged victorious, securing his position as AP’s new chairman.
Otedola VS Dangote
The feud between Femi Otedola and Aliko Dangote began in 2010 when Chevron announced its intention to divest Texaco Nigeria, a company Otedola had been eyeing.
However, Dangote’s cousin’s company, MRS Holdings, outbid Otedola. This led to a rivalry where Otedola invested $2 billion in sectors that encroached on Dangote’s territory.
Accusations of share price manipulation and other conflicts ensued. Although the two eventually reconciled, Otedola’s wealth took a hit, pushing him off the Forbes billionaire list.
Hassan Odukale, Oba Otudeko Vs Femi Otedola
The trio are locked in a battle for a forceful takeover of FBN Holdings Plc (FBNH), the parent company of First Bank of Nigeria. and throwing in all their strength.
Oba Otudeko in the last few weeks through an affiliate company of his Honeywell Group acquired 4,770,269,843 shares of the firm in a cross deal worth N87.8 billion.
These shares which Otudeko bought at N19 per unit are the largest volume of First Bank shares traded in a single day since 2012, when the stock exchange started publishing data. The acquisitions took his shareholding to 14 per cent of the bank’s outstanding market value.
