Nigerian billionaire Femi Otedola has sold his 6.3% stake in Transnational Corporation Plc (Transcorp) to its chairman, Tony Elumelu.

The group chairman of Transcorp, Elumelu, purchased Otedola’s shares on Thursday using Transcorp’s closing price at an options contract due to be paid in a series of instalments over time.

It was reported that both parties believed reaching an agreement was in their best interests. The negotiations leading up to the agreement were said to be brief but friendly as Otedola and Elumelu openly committed to collaborating to advance Transcorp’s objectives.

Transcorp, thereafter, announced that HH Capital Limited, a special-purpose vehicle owned by Elumelu, increased its stake to 25.58 per cent.

Transcorp said: “In compliance with Chapter 17, Rule 17.13 of the NGX Issuers Rules, Transnational Corporation Plc informs the NGX and the investing public of the below new acquisition of shares in the company. With this new acquisition, HH Capital Limited now holds 9,991,173,177 units, representing 25.58 per cent of the company’s total shares.”