Dr. Awele Elumelu, the wife of billionaire investor Tony Elumelu, has recently experienced a drop in the value of her stake in Transnational Corporation of Nigeria (Transcorp), falling below the $10 million mark to $9.89 million.
Market information on July 11 revealed that Awele Elumelu’s stake in Transcorp was previously valued at $12.54 million.
However, this value decline is a direct result of the company’s share price experiencing a sharp fall from $0.00605 (N4.7) per share to $0.0048 (N3.71) at the close of trading activities on the Nigerian Exchange on Monday, July 17. 2023, as reported by Nairametrics.
In just one week, the millionaire investor faced an estimated loss of $2.6 million.
Dr Awele Elumelu originally acquired a substantial number of 2,063,484,991 units of Transcorp shares at a price of N3.12 per share back in May 2023.
This made her a significant shareholder, further consolidating the control held by billionaire investor Tony Elumelu.
Notably, she expanded her holdings in the company by acquiring an additional 7.3 million shares in Transcorp in June 2023, elevating her total shares to 2,070,794,804, valued at N6.66 billion.
Despite some early gains from her stake, Transcorp’s shares experienced a sharp decline of over 21%, resulting in the drop of her market value stake by an estimated $2.6 million (N2.05 billion).
Nonetheless, it is essential to acknowledge that her previous purchase was N6.6 billion, putting her at a winner’s end irrespective of the dip. Regardless, the millionaire Dr Awele Elumelu remains a top investor on the Nigerian Exchange.
Dr Awele Elumelu is an established health professional with an impressive background in the medical field, which adds to her achievements.
As Chairperson of Avon Healthcare Limited and the Chief Executive Officer of Avon Medical Services Limited, she oversees the healthcare investments of Heirs Holdings.
Her medical experience spans various disciplines, including medicine, surgery, paediatrics, obstetrics, gynaecology, and emergency medicine, with work experience at notable institutions like the Lagos University Teaching Hospital in Nigeria and Grantham and District Hospital in the UK.
Backstory
As a backdrop to the recent developments in Transcorp’s stockholding, there have been significant tussles in ownership, particularly after billionaire investor Femi Otedola disclosed his 5.5% ownership of 2,245,639,251 shares in the company.
This positioned him as the second-largest investor in Transcorp, fueling a scramble for shares and causing the share price to double rapidly to approximately N2.4 per share.
In response, Tony Elumelu increased his shareholding in the company to about 25.5% via his special purpose vehicle, HH Capital, making him the majority shareholder and granting him effective control.
As negotiations unfolded, Otedola eventually exited the company, selling his shares, and paving the way for Tony Elumelu to strengthen his grip on Transcorp.
These developments signify the dynamic and competitive landscape of Nigeria’s corporate sector.