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AP shares: Dangote, Otedola meet, agree to end feud

 

There was a dramatic twist on Wednesday to the dispute between the President and Chief Executive Officer of Dangote Group, Alhaji Aliko Dangote, and the Chairman of African Petroleum Plc., Mr. Femi Otedola, over the alleged manipulation of AP shares price.  

In the middle of a tension-soaked hall at the House of Representatives in Abuja, the two multi-billionaires shook hands and pledged to resolve their differences amicably in the interest of other Nigerians. 

They also addressed each other as “my dear brother”, cutting short what was initially expected to be a long public hearing into the crisis by the House Committee on Capital Market headed by Alhaji Ahmed Wadada. 

The exchange of pleasantaries was done following an appeal by Wadada to both men to re-ignite their “friendship and brotherly love.” 

Before Wadada’s call, Dangote and Otedola, who were on March 12,2009, listed as 261st and 601st richest men in the world by Forbes magazine, had avoided each other when they entered the hall.

They had shaken hands with all the dignitaries present in turn but deliberately avoided each other. 

The AP chairman had petitioned the House complaining that Nova Finance and Securities and Dangote manipulated the shares price of the oil company, urging the committee to investigate the matter. 

But when he was called to the rostrum on Wednesday to defend his petition, Otedola told the committee that he was satisfied by an earlier decision on the issue by the Securities and Exchange Commission. 

According to him, SEC had already sanctioned Nova Finance and Securities, adding that he would stand by the decision of the regulatory body. 

He stated that following an investigation into the “steady drop” of the shares price of AP in February 2009, he had made a report to SEC, which then looked into the complaint and sanctioned Nova accordingly. 

“I will stand by the decision arrived at by SEC and the NSE”, he added. 

When the committee sought to know whether he was withdrawing his petition before the House or not, Otedola replied, “I have not withdrawn it. I am only saying that because the committee made an appeal for peace in the interest of Nigeria, I will abide by the decision of SEC. It (SEC) has penalised those involved.” 

Otedola, however, did not object to the appeal to resolve the dispute amicably.

On his own part, Dangote urged the committee to also study the full report of the Nigerian Stock Exchange on the share manipulation investigations, expressing doubts about the claim of price manipulation. 

He argued that the price of the company’s shares had dropped just like others traded on the floor of the NSE did earlier in the year. 

Dangote noted that a number of the companies, including banks, which suffered a similar fate, had begun to witness a gradual appreciation in their shares prices. 

The committee later directed SEC to forward the report of its investigations into the crisis to it for review before taking a final stand. 

The Director-General of the NSE, Prof, Ndi Okereke-Onyuike, who also appeared before the committee, tried to present the report on the matter, but she was asked to send it to the secretariat of the committee. 

The committee is also investigating the hybrid shares offer made by AP. 

Reacting to the matter, Wadada said, “The decision of SEC or NSE on the issue is not binding on the committee; we have oversight responsibilities over them. 

“The committee will look at what SEC has done; we will also look at the difference between SEC’s and NSE’s findings and recommendations. 

“If we have any reservations about the recommendations, we shall get back to the members of the public; we shall make our final stand public.”

AP had claimed in recent newspaper advertorials that Dangote mandated Nova to cross its shares in the NSE, which resulted in a price crash.

Otedola, who left the country after an alleged attempt to poison him in Abuja about two months ago, had also demanded the resignation of Dangote as the first vice- president of the NSE and an investigation into the matter.

But Dangote promptly denied the allegation.

While the NSE fined Nova N500,000, SEC, after concluding a separate investigation, disqualified the company’s Managing Director; Mr. Eugene Anenih, from being employed in any arm of the securities trading industry for five years with effect from April 16, 2009.

It also fined them (Nova and Anenih) N190,000.

The Otedola/Dangote feud ostensibly stemmed from a breach of a gentleman’s agreement between them not to encroach into each other’s business territory.

Dangote allegedly entered the petroleum business by upstaging Otedola in his bid to acquire controlling interest in Texaco, the downstream arm of Chevron Nigeria Limited.

Otedola retaliated by setting up cement and sugar importation business, markets, which Dangote dominates.

 

more from forbes 

 

Then There Was One

2009


On Monday, Nigerian oil marketing company, African Petroleum, ran ads in several mainstream Nigerian newspapers accusing companies owned by billionaire Aliko Dangote and broker Nova Finance and Securities of share manipulation.

The ads, signed by African Petroleum's management, claimed that Dangote's entities and Nova had engaged in "certain unwholesome and unethical activities." The companies allegedly helped push African Petroleum's stock down by 80% in the past eight weeks through the practice of "crossing," which refers to a series of trades made between the two entities.

The ongoing feud between Dangote and Femi Otedola, the head of African Petroleum, was the motive behind the stock moves, the ads stated, and was ultimately a "settlement of personal scores" that claimed company shareholders as victims. Among those victims is Otedola himself. The company's chief executive, he was Nigeria's only other billionaire when we published our ranks in March, worth $1.2 billion. His fortune is now down to approximately $500 million.

But Otedola may still exact his revenge. On Wednesday, two days after the ads ran, Nigeria's Securities and Exchange Commission announced it was investigating Dangote's companies as well as the broker in response to the share manipulation allegations.

It is just the latest chapter in a bitter rivalry between the African nation's two wealthiest businesspeople. Former friends, the two have been fighting for most of the past year.

The trouble apparently started last spring when Dangote, who made his fortune in sugar and cement, decided to step into Otedola's oil patch. A consortium that included his family investment firm M.R.S. Holdings outbid Otedola's company. It paid $1 billion for Chevron's West Africa division, $800 million higher than Otedola's bid for just the Nigerian operations.

Adebisi Osunneye, a consultant with New Africa Business Development in Lagos, says Otedola believes Dangote broke a gentleman's agreement to stay out of each other's areas.

The two had risen through the ranks of the country's new business elite by maintaining close ties to former President Olusegun Obasanjo. Dangote built a manufacturing conglomerate, listing his sugar-production company on the Nigerian stock exchange in 2007. Though Nigeria's stock market has declined over 60% over the past year, he remains Nigeria's richest man, worth a recent $2.5 billion. Meanwhile, Otedola founded Zenon Petroleum and Gas nearly a decade ago, building it into the nation's biggest diesel supplier, with other investments in maritime, haulage, properties and insurance. The son of a politician, he debuted on the Forbes billionaires list this year.

After Dangote stepped on Otedola's turf in the Chevron deal, Otedola retaliated by trying to block the sale in court; a resolution is pending. Otedola also stepped up investments in Dangote's publicly traded companies and announced plans to invest $2 billion in sugar and cement production.

This is not the first time the SEC has investigated African Petroleum activities. In November, the regulatory body froze the company's assets after it received complaints about its recently completed merger with Otedola's Zenon Petroleum, despite the fact that shareholders had approved the deal last spring. Lawmakers were apparently concerned Zenon had too much debt to make the deal work. Trading of its shares was temporarily halted but later resumed in January.

Dangote and Otedola both refused to comment on the escalating tensions.
 

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BETRAYAL! WHY OTEDOLA, DANGOTE FALL APART

Posted on October 12, 2008 by Fortune&Class

The prospect of Mr. Femi Otedola and Alhaji Aliko Dangote engaging in direct business competition is already exciting Nigerians across the economic strata.

Until about two months ago, Otedola and Dangote have been known to be buddies in both the social and business senses. A source that had trailed the relationship between the two observed that though Dangote had had preeminence in the nation’s economic sphere before Otedola, but as soon as Otedola emerged in the big league of business owners about six years ago, he and Dangote became a pair both in public places and business alliances.

 In the early days of Transcorp, Otedola and Dangote were on board of the company, positioned back then as Nigeria’s answer to the dominance of the multinationals. Perhaps the most high profile business alliance between the two was the Blue Star Consortium, a special acquisition vehicle the two had used to acquire controlling stakes in the Port Harcourt and Kaduna Refineries. The acquisitions, were, however, revoked soon after Alhaji Umar Musa Yar’Adua assumed the office of the nation’s president.

Beside, though Dangote is known to be the face of Obajana Cement Company, a cement manufacturing concern propositioned to be the biggest in production capacity in Africa, Otedola, his friend has also been mentioned to be part of Obajana in terms of stake holdings.

But now, it would seem that the business collaboration between the two may have been put under pressure arising from what sources close to the very moneyed men describe as betrayal of trust.

 “I think it all has to do with the battle to acquire Chevron Plc, the downstream arm of Chevron Oil and Gas in Nigeria.” A source close to the two said. “Of course, you know by now that Femi had an intense interest in the acquisition of the company. The benefits to him were obvious, if he had acquired Chevron, he would have become the indisputable dominant operator in the downstream sector of the oil and gas industry. He would have merged Africa Petroleum, (a downstream behemoth in its own right after it was merged with Zenon) with Chevron Plc. With the two you can only imagine Femi’s competitive edge in the market place” The source revealed.

“Before the divestment of Chevron Oil and Gas from Chevron Plc was made public, Femi had apparently got information on the move and had shared his desire to buy Chevron with his friend, Dangote. I know that initially, Dangote was all in support of the scheme by Femi to acquire. But that was until Sayyu Dantata came into the picture.” The source said.

Sayyu Dantata, aside being a former business protégé of Dangote, is also related to Dangote, so it would seem natural that the balance of emotions by Dangote would tilt in favour of Sayyu.

“As it turned out, I am not too sure if Femi thought along that line. At least, he and Dangote had been at the Chevron thing for a while so there would have been no suspicion of Dangote’s shift of loyalty. So as the negotiation and bidding for Chevron proceeded, Femi constantly updated on his next moves and strategies. As issues evolved, he got to know that Sayyu’s MRS Group, the company that eventually won the bid was always outflanking him. The long and short of it is that there is the suspicion that Dangote might have availed his cousin, Sayyu of information Femi had shared with him.”

The same source said there had been a confrontation between the two where Dangote explained that Otedola could not have expected him to go the whole hog with him in consideration of his (Dangote) relationship with Sayyu.

“You know these people are matured men, you don’t expect them to bring their small fights to the public place, what I know is that Femi has decided to review and locate any opportunity in the economic space that enable him contribute to the economic advancement of the country. So all these talks about Femi taking on Dangote in competition by deciding to go into establishment of cement manufacturing plant is principally about expanding his business horizon. It has no direct bearing on the role Dangote played in the bid for Chevron.” The source explained.

 

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That billionaire businessman Alhaji Aliko Dangote runs one of the most successful conglomerates in the world is not in doubt. Dangote, who is the President/Chief Executive of the Dangote Group, has a powerful management team of managers who ensure the smooth running of his billion-dollar conglomerate.. Below, Dawn-To-Dusk News unveils 10 powerful men the Kano-born billionaire businessman can't do without.


SANI DANGOTE
Alhaji Sani Dangote is Aliko Dangote's brother. An established businessman with investments in key sectors of the economy including manufacturing, agriculture and oil services, he is the Group Vice President of Dangote Group. Alhaji Sani Dangote also sits on the Board of several other companies including Nigerian Textile Mills Plc, Nutra Sweet Limited, Gum Arabic Limited, Dangote Textile Mills Limited, and others.


ABDU DANTATA
Alhaji Abdu Garba Dantata, Aliko Dangote's cousin, is the Group Executive Director(GED) in charge of Logistics and Distribution. Before he was appointed GED, he was the Executive Director, Sales & Marketing. As Group Executive Director(GED) in charge of Logistics and Distribution in the Dangote Group, he is responsible for coordinating the sales and marketing of all products manufactured or imported by the Group. 


JOSEPH MAKOJU
Engr. Joseph Makoju is the Honorary Adviser to Alhaji Aliko Dangote. He has held this position from 2009 to date. Makoju holds a BSc (1st Class) honours degree in Mechanical Engineering from the University of Nottingham, United Kingdom and an M.Phil. in Mechanical Engineering from the same university. Before his current position, Engr. Makoju was Chief Operating Officer, Dangote Cement. 


OLAKUNLE ALAKE
Mr. Olakunle Alake is the Chief Operating Officer of the Dangote Group, a position he has held since January 2007. He holds a Bachelors degree in Civil Engineering from Obafemi Awolowo University, Ile-Ife (1983) and is a Fellow of the Institute of Chartered Accountants of Nigeria. 


KNUT ULVMOEN
A Norwegian, Mr. Knut Ulvmoen is the Group Managing Director, Dangote Cement Plc in charge of Sales and Marketing and International Trade in the African continent. He holds a Masters of Science degree in Business and is a member of the Norwegian Association of Authorised Accountants. 


SADAN BAKI
Alhaji Sada Ladan-Baki has about 30 years experience in public service and fund administration. He is a graduate of Economics from the Ahmadu Bello University Zaria, and holds a Masters Degree in Business Administration. He sits on the board of several companies and belongs to many professional associations.


DEVAKUMAR EDWIN
Mr. D.V.G. Edwin is the Group Managing Director / CEO of Dangote Cement Plc. He holds a Graduate and Masters Degree in Engineering from the Madras University in India and he is also a Chartered Engineer. He holds a Post Graduate Diploma in Management from IITM, Holland. Mr. Edwin joined the Dangote Group in 1992 as a General Manager.


TAJUDEEN SIJUADE
Alhaji Tajudeen Sijuade, the Chief Financial Officer of Dangote Group, is a qualified Chartered Accountant (1984) with experience spanning 38 years. He joined the Dangote Group in October 1989 as a Chief Accountant. Before then, he had worked for Nestle Nigeria Plc and Akintola Williams-Chartered Accountants. He became General Manager in the Dangote Group in January 1998. 


USEN UDOH
Mr. Usen Udoh is the Group Chief Human Resources Officer of the Dangote Group. Mr. Udoh is an alumnus of the prestigious Harvard Business School and holds an MBA from the University of Leicester School of Management, his first degree being of Bachelors of Engineering (with Hons). Prior to joining Dangote on May 2, 2014, Usen worked across several industries leading major industry change programmes.


KUZHYIL RAVINDRAN
Kuzhyil Ravindran is the Chief Financial Officer of Dangote Group. A qualified Chartered Accountant, he is a fellow of the Institute of Chartered Accountants of India. He has over 36 years experience in various professional capacities in leading Indian companies such as ACC Limited and Mahindra & Mahindra Limited. He has varied experience in different industries such as cement, auto ancillaries, tobacco and machine tools. 


MANSUR AHMED
Engr. Mansur Ahmed is the Director, Stakeholder Relations and Corporate Communications of the Dangote Group in 2013. He has a first degree in Mechanical Engineering from Nottingham University (1972) and a Masters degree in Industrial Engineering and Administration from Cranfield Institute of Technology (now Cranfield University 1975) both in the United Kingdom. 

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1:19
This $100,000-per-night private island is the world’s most expensive resort
Musha Cay in the Bahamas, owned by David Copperfield, costs $42,000 a night. Necker Island, Richard Branson’s private island resort in the British Virgin Islands, will set you back $77,500 a night. But Banwa Private Island, a new resort in the Philippines, costs $100,000 a night — the most expensive island resort in the world.
 
So, what do you get for a six-figure stay?
H/O: Banwa 3
 
Courtesy of Banwa Private Island
The 15-acre island resort located in the archipelago of Palawan is a two-hour helicopter or seaplane ride from Manila. On the secluded island, there are six beachfront villas (ranging from one to four bedrooms) all with a private infinity pool and Jacuzzi. There are also 12 garden rooms and a top-level residential suite. The island can accommodate up to 48 people.
H/O: Banwa 5
 
Courtesy of Banwa Private Island
The inclusive resort has a full staff of chefs who cook with vegetables from the onsite organic farm and fish caught from the surrounding Sulu Sea. The resort even makes its own honey. The wine list has bottles costing as much as $36,000 (though premium wines are not included in the resort rate).
H/O: Banwa 4
 
Courtesy of Banwa Private Island
Guests have use of an island concierge and they can get unlimited spa treatments.
 
H/O: Banwa 1
 
Courtesy of Banwa Private Island
Banwa also has a myriad of included activities, like snorkeling, kayaking, jet skiing, scuba diving, sailing, yoga and tennis. There is an on-site marine specialist to talk about the local wildlife, including protected native animals like Hawksbill sea turtles and Tabon birds.
H/O: Banwa
 
Courtesy of Banwa Private Island
Transfers to and from Manila are not included, and prices start at $990 per way for a nine-passenger seaplane and $11,580 round-trip for a five-passenger helicopter, according to Banwa. Minimum stay requirements range from three to five nights depending on the time of year. Giving Banwa a run for its money is the most expensive hotel room in America, the new Damien-Hirst-designed Empathy Suite at Palms Casino Resort in Las Vegas. The room costs $100,000 a night with a two-night minimum stay.

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Dangote Group founder Aliko Dangote is the world’s richest black person.
 
 
 

Nigerians take the lead on lists of black billionaires, and one, Aliko Dangote, takes the top spots. With an estimated net worth of $10.3 billion, according to Bloomberg, the Dangote Group founder is the richest man in Africa. According to Forbes, he’s also the richest black person in the world. Most of the entrepreneur’s wealth derives from his 85.2 percent majority stake in Dangote Cement, which is the largest cement producer in sub-Saharan Africa.

  First launched in 1981, the Dangote Group now owns and operates more than 18 subsidiaries across a range of industries, including Dangote Cement, Dangote Flour and Dangote Sugar. The 61-year-old billionaire credits much of his success to his maternal grandfather, who instilled a business mindset into Dangote at a young age. At just eight years old, Dangote would buy sweets with his allowance, which he’d give people to sell for a profit.

“When you are raised by an entrepreneurial parent or grandparent you pick that aspiration,” he told Forbes in 2015. “It makes you be much more aggressive — to think anything is possible.” Dangote’s entrepreneurial interests followed him into adulthood. In 1977, he graduated with a business degree from Egypt’s Al-Azhar University. When he returned to Nigeria, Dangote moved to Lagos, one of Africa’s wealthiest cities and the country’s largest financial center.   Using a $500,000 loan from his uncle, Dangote began trading in commodities such as bagged cement and agricultural goods like rice and sugar. These business ventures became so successful that he was able to repay his uncle within three months of starting the operation.  

 

In 1999, Dangote shifted to manufacturing, building sugar refineries and a flour mill. When Dangote Sugar first debuted on the Nigerian Stock Exchange in 2010, sales had quadrupled to $450 million, according to Forbes, making it the largest sugar refinery in Africa and by some estimates, the second largest in the world. Similarly, Dangote Flour tripled revenue to $270 million. Dangote describes his professional journey as “exciting,” but notes that he’s also encountered obstacles along the way. Overcoming these challenges, he told Forbes Africa, required big thinking and an innovative approach.

“You have to dream big to be able to be big and that’s what we’re doing,” said Dangote, who’s now building an oil refinery that’s projected to cost around $14 billion. For his part, Dangote says he’s driven by the impact he can have on humanity. In fact, he’s also one of Africa’s top philanthropists. “You’d like to be remembered for things that you’ve actually done,” he told Forbes. “We Africans are the only ones that can make Africa great.”

 

2019[2]Edit

  World ranking Name Citizenship Net worth (USD) Sources of wealth
  100 Aliko Dangote  Nigeria 18.7 Billion CementSugarSalt
  365 Mike Adenuga  Nigeria 9.2 Billion Telecommunicationpetroleum
  1561 Folorunsho Alakija  Nigeria 1.1 Billion Fashion industry, oil

2018[3]Edit

  World ranking Name Citizenship Net worth (USD) Sources of wealth
  100 Aliko Dangote  Nigeria 14.1 Billion Cement, Sugar, Salt.
  365 Mike Adenuga  Nigeria 5.3 Billion Telecommunicationpetroleum
  1561 Folorunsho Alakija  Nigeria 1.1 Billion Fashion industry, oil
That's All