Transcorp Hotels, a subsidiary of Transcorp Plc has received regulatory approval to raise N10 billion through rights issue to its shareholders.
The hospitality company, which is currently building a new hotel structure in Ikoyi area of Lagos is proposing to issue 2.66 billion ordinary shares of 50 kobo each at N3.76 per share to prequalified shareholders.
According to the company, 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 of July 13, 2020. The company plans to issue the share from its authorised share capital which is currently at N7.50 billion of 15.0 billion ordinary shares of 50 kobo each. With the rights issue, the company is expected to bring its fully paid-up share capital to N5.13 billion of 10.26 billion ordinary shares of 50 kobo each at the close of the issuance.
Last month, shareholders at an Extraordinary General Meeting of the company gave their approval for the N10 billion rights issue. Emmanuel Nnorom, Chairman of the company said the approval and endorsement by shareholders empowered the Board and Management to look to the future with confidence despite the current harsh operating environment.
The Chief Executive Officer, Dupe Olusola said that 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 noted 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. The shareholders’ approval for new capital raising shows that shareholders have confidence in the future of the company, said Olusola, assuring that the company will continue to play its part in ensuring a significant recovery of the Nigerian hospitality industry.