Transcorp Hotels Gets Nod to Raise N10bn Through Rights Issue


Posted by JUSTOURS
Transcorp Hotels Plc is committed to raise the sum of N10 billion in its proposed Rights Issue to fortify its balance sheet. Transcorp, owners of Hilton flagship in the West African subregion, Transcorp Hilton Abuja and Transcorp Hotels Calabar, may have as usual looked to his iconic property in Abuja to weather the storm. It appeared that the hotel was also affected by the COVID-19 pandemic which disrupted several industries around the world. The company admitted that the hospitality industry is one of the hardest hit of the health crisis.
The authorisation was given by the Board of Directors at the Extraordinary General Meeting of the Company, which took place on Monday, June 29, 2020, in Lagos.
According to the content of the release, the Board gave approval to issue 2,659,574,468 Ordinary Shares of 50 kobo each by way of a Rights Issue to the Shareholders based on 7 new Ordinary Shares for every 20 Ordinary Shares of 50 kobo each held at a price of N3.76 per share.
The shares will be issued from the authorised share capital of the Company which is currently at N7,500,000,000 comprising of 15,000,000,000 Ordinary Shares of N0.50 each, and the resultant issued and fully paid-up share capital will be N5,129.989.184 consisting of 10,259,978,368 Ordinary Shares of N0.50 each.
The Chairman of Transcorp Hotels Plc, Mr. Emmanuel N. Nnorom noted that “This approval and endorsement of shareholders empowers the Board and management to look to the future with confidence despite the current harsh operating environment.”
Speaking at the meeting, Managing Director/CEO of Transcorp Hotels Plc, Mrs. Dupe Olusola, also welcomed this approval. “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 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.”
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