Transcorp Hotels’ shareholders endorse N9.9bn rights issue

Shareholders of Transcorp Hotels Plc have unanimously approved the company’s plan to raise the sum of N9.9 billion through a rights issue. The shareholders gave the approval at the company’s Extra-Ordinary General (EGM) in Lagos on Monday and streamed live due to coronavirus.

Specifically, the shareholders mandated the company’s board of directors to issue up to 2,659,574,468 ordinary shares of 50k each from its unissued share capital by way of rights issue at N3.76 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 include 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 (SEC), the Nigerian Stock Exchange and the Corporate Affairs Commission or any other regulatory authorities. Mr Emmanuel Nnorom, the company’s Chairman, who spoke at the meeting, said the rights issue was still subject to obtaining requisite 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.