NSE Approves Transcorp Hotels’ N10b Rights Issue

By July 29, 2020 NEWS

The Nigerian Stock Exchange (NSE) has approved application by Transcorp Hotels Plc to raise N10 billion in new equity funds from its existing shareholders.

Regulatory documents obtained at the weekend indicated that the management of the NSE, where the new shares being proposed for issuance will be listed, has approved the planned new capital raising, paving the way for the hotel and tourism company to complete pre-offer processes.

Transcorp Hotels, owners of Transcorp Hilton Abuja and Transcorp Hotels Calabar, plans to raise N10 billion through the issuance of 2.66 billion ordinary shares of 50 kobo each at N3.76 per share to prequalified shareholders.

The rights will be pre-allotted to existing shareholders on the basis of seven new ordinary shares for every 20 ordinary shares of 50 kobo each held as at July 13, 2020.

The shares will be issued from the authorised share capital of the company which is currently at N7.50 billion of 15.0 billion ordinary shares of 50 kobo each.

Post-offer fully paid-up share capital will be N5.13 billion of 10.26 billion ordinary shares of 50 kobo each.

Shareholders had earlier, at an Extraordinary General Meeting last month in Lagos, approved the N10 billion rights issue.

Chairman, Transcorp Hotels Plc, Mr. Emmanuel Nnorom said the approval and endorsement by shareholders empowers the board and management to look to the future with confidence despite the current harsh operating environment.

Managing Director, Transcorp Hotels Plc, Mrs. Dupe Olusola, said the company’s track record of excellent service delivery has positioned it as the first choice for international and local guests.

“We are not resting on our oars but working round the clock to innovate new products and services to further delight our guests, notable of such is the launch of asset-light strategies to deepen our hospitality footprints across Africa,” Olusola said.

She added that while the world has been greatly impacted by the COVID-19 pandemic, with the hospitality industry being one of the hardest hit, Transcorp Hotels is optimistic about a great recovery for the sector.

She noted that shareholders’ approval for new capital raising shows that shareholders have confidence in the future of the company, assuring that the company will continue to play their part in ensuring a significant recovery to the Nigerian hospitality industry.

A Non-Executive Director, who also represents the Ministry of Finance Incorporated on the board, Mr. Alexander Adeyemi, pointed out that given the challenging times the hospitality industry faces, it has become critical to inject funding into the business for a stronger balance sheet.

“Transcorp Hotels has maintained a history of excellent performance in the hospitality industry, and this is a bold step towards the achievement of its long term goals,” Adeyemi said.

 

Source: The Nation