Transcorp Hotels to Raise ₦9.9 billion Rights Issue

Transcorp Hotels to Raise ₦9.9 billion Rights Issue

Shareholders of Transcorp Hotels Plc have unanimously approved the company’s plan to raise the sum of ₦9.9 billion through a rights issue.

In a 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 rights issue at ₦3.76 per share.Transcorp Hotels to Raise ₦9.9 billion Rights Issue

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.

This include without limitation the approval of the basis of allotment, allocation of proceeds of the shares issued, filing of any required documentation with regulators.

Emmanuel Nnorom, the company’s Chairman, who spoke at the meeting, said the rights issue was still subject to obtaining requisite regulatory approvals.

The approval from the Securities and Exchange Commission (SEC) and other regulatory authorities are key to the decision.

Nnorom who commended the shareholders for their support and encouragement, assured them of enhanced value creation.

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