Nigeria: Transcorp Hotels Seeks to Raise N10 Billion From Existing Shareholders

15 July 2020

Transcorp Hotels Plc has applied to the Nigerian Stock Exchange (NSE) to raise additional capital via a rights issue from existing shareholders.

Transcorp Hotels made the application through its stockbroker, United Capital Securities Limited.

Specifically, the leading hospitality group, has applied to the NSE the approval and listing of a rights issue 2,659,574,468 ordinary shares of N0.50 each at N3.76 per share on the basis of seven new ordinary shares for every 20 ordinary shares held. The qualification date for the rights issue is Monday, 13 July 2020.

Shareholders of the company had last month approved the right issue at extra-ordinary general meeting (EGM) in Lagos.

Speaking at the EGM, the Chairman of Transcorp Hotels Plc, Mr. Emmanuel Nnorom said: "This approval and endorsement of shareholders empowers the Board and management to look to the future with confidence despite the current harsh operating environment."

Also speaking at the meeting, Managing Director/CEO of Transcorp Hotels Plc, Mrs. Dupe Olusola, said: "Our track record of excellent service delivery has positioned us as the first choice for international and local guests alike noting, 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."

According to her, the world has been greatly impacted by the COVID-19 pandemic, with the hospitality industry being one of the hardest hit.

"However, we are optimistic about a great recovery for the sector and your approval today shows that you also share in this mindset. We will continue to play our part in ensuring a significant recovery to the Nigerian hospitality industry, " Olusola said.

In the same vein, a non-executive director of the company, who also represents the Ministry of Finance Incorporated on the board, Mr. Alexander Adeyemi, said: "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."

Meanwhile, the stock market remained bearish as the NSE All-Share Index fell 0.34 per cent to close at 24,117.40, while market capitalisation shed N44.9 billion to be at N12.6 trillion.

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