Shareholders Approve Transcorp Hotels’ N10bn Rights Issue

Shareholders of Transcorp Hotels Plc, on Monday, June 29, 2020, in Lagos, unanimously approved the recommendation by the directors to raise N10bn fresh capital by way of rights to existing shareholders, in a bid to fortify its balance sheet.

Specifically, the shareholders at an Extraordinary General Meeting (EGM) on Monday, June 29, 2020, authorized the issuance of 2,659,574,468 ordinary shares of 50 kobo each on the basis of seven new ordinary shares for every 20 held at a price of N3.76 per share.

The shares will be issued from the company’s N7.5bn authorised share capital comprising 15bn ordinary shares of N0.50 each, while the resultant issued and fully paid-up share capital will be N5.129bn consisting of 10,259,978,368 units of N0.50 each.

According to Emmanuel Nnorom, Chairman of Transcorp Hotels, the approval by the “shareholders empowers the board and management to look to the future with confidence despite the current harsh operating environment.”

Commenting on the rights issue, Mrs. Dupe Olusola, Managing Director/CEO of Transcorp Hotels Plc added that the company’s track record of excellent service delivery has positioned it “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.”

She lamented that the world has been greatly impacted by the Coronavirus (COVID-19) pandemic with the hospitality industry being one of the hardest hit, even as she expressed optimism about a great recovery for the sector.

Olusola assured that the approval of the rights issue at the meeting, “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. “

Also commenting on the offer, Alexander M. Adeyemi, a Non-Executive Director, representing the Ministry of Finance Incorporated, explained 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.”

Photo caption: Managing Director/CEO of Transcorp Hotels Plc, Dupe Olusola; Chairman, Emmanuel Nnorom; Acting Company Secretary, Chike Anikwe; and President/CEO of Transcorp Plc, Owen Omogiafo, during the  Extraordinary General Meeting of Transcorp Hotels Plc in Lagos on Monday.