Transcorp to raise N10bn through rights issue

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

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

Specifically, the leading hospitality group, applied to the NSE for 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 13 July 2020.

Shareholders of the company had last month approved the rights issue at an extraordinary general meeting in Lagos.

Speaking at the meeting, the Chairman of company, 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, the firm’s Managing Director/CEO, Dupe Olusola, noted: “Our track record of excellent service delivery has positioned us as the first choice for international and local guests alike.

“We are not resting on our laurels 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 added.

In the same vein, a non-executive director of the company, who also represents the Ministry of Finance, 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.”

According to him, Transcorp 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.

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