Transcorp Hotels Plc is raising ₦9.9 billion through a rights issue to strengthen its balance sheet. It will issue 2.7 billion units of shares at ₦3.76. Following a ₦686.6 million loss in Q1 2020 from a profitable position in the same period last year, a successful rights issue could ease current challenges.
Shareholders of the company unanimously approved the company’s plan to raise the sum of ₦9.9 billion through a rights issue.
In live streaming, the shareholders gave the approval at the company’s Extra-Ordinary General (EGM) in Lagos on Monday.
The shareholders mandated the company’s board of directors to issue up to 2,659,574,468 ordinary shares of 50k each from its un-issued share capital by way of the rights issue at ₦3.76 per share.
The rights issue would be on the basis of seven new ordinary shares for every 20 ordinary shares of 50k each held by existing shareholders of the company.
They also authorised the Directors to appoint advisers and professional parties necessary for the transactions contemplated in the rights circular, upon such terms and conditions that the directors may deem appropriate.
The shareholders authorised the Board of Directors to take all actions as they might deem necessary or advisable to effect the purpose and intent of the foregoing resolutions.
According to them, this includes without limitation the approval of the basis of allotment, allocation of proceeds of the shares issued, filing of any required documentation with the Securities and Exchange Commission, the Nigerian Stock Exchange and the Corporate Affairs Commission or any other regulatory authorities.
Emmanuel Nnorom, the company’s Chairman, who spoke at the meeting, said the rights issue was still subject to obtaining required regulatory approvals from the SEC and other regulatory authorities.
Nnorom, who commended the shareholders for their support and encouragement, assured them of enhanced value creation.
Transcorp Hotels Plc is one of Africa’s leading hospitality companies, committed to redefining service standards across the continent while remaining truly and authentically African.