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Elumelu Set to Become Chairman of Transcorp
20 Jun 2011
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Chairman of Heirs Holding Limited, Mr. Tony Elumelu



The shares of Transnational Corporation of Nigeria (Transcorp) Plc moved 1.1 per cent last Friday for the first time in five days at the stock market following the announcement that the Chairman of Heirs Holding Limited, Mr. Tony Elumelu, has been appointed to the Board of the company.

Transcorp’s equity price, which remained at N0.90 per share since Monday, consequently closed at N0.91 on Friday. High supply of the shares in the market by investors who were selling to take profit had depressed the equity by over 50 per cent in the past weeks, falling from a high of N1.82 to N0.90 last Monday.

However, the Nigerian Stock Exchange (NSE) told market operators that Elumelu had been appointed to the Board of Transcorp alongside Dr. Julius Kpaduwa.

According to the NSE, while Kpaduwa was appointed in March, Elumelu joined the Board in April.
Market operators said that investors saw the return of Elumelu as a good development that would impact positively on the fortunes of Transcorp, adding that he might be made the chairman of the company soon.
“From every indication, Elumelu is on his way to becoming the chairman of the Transcorp, a development market analysts and shareholders consider very timely given the history and performance of the company.

Elumelu was a founding director of Transcorp when he was the Chief Executive Officer of United Bank for Africa Plc but left following a policy by the Central Bank of Nigeria. Now that he has retired from the bank and has an investment firm that has bought a significant stake in Transcorp, his wealth of experience would go a long way in improving the fortunes of Transcorp,” a stockbroker said.
After buying into the company last March, Heirs Holding explained that Transcorp shareholders would benefit from its track record of value-creation, particularly smaller shareholders who subscribed to the original vision of the company as a means of mass participation in Nigeria's economic success.

“Heirs Holdings has structured its investment to ensure that all shareholders will continue to participate in the listed company and benefit from the considerable upside believed to be represented in Transcorp,” the company said.
The shares of Transcorp closed as the most active in the conglomerates sub-sector last week, accounting for 30.16 million shares valued at N26.668 million in 236 deals.