Transcorp Hotels: Shareholders endorse N9.9bn rights issue

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Transcorp Hotels: Shareholders endorse rights issue

THE shareholders of Transcorp Hotels Plc have unanimously approved the company’s plan to raise N9.9 billion through a rights issue.

The shareholders gave the approval on Monday at the company’s Extra-Ordinary General (EGM) in Lagos, streamed live due to coronavirus.

Specifically, they 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 the shareholders, 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 (SEC), the Nigerian Stock Exchange (NSE) and the Corporate Affairs Commission (CAC) or any other regulatory authorities.

The company’s chairman, Mr Emmanuel Nnorom said at the meeting that the rights issue was still subject to obtaining requisite regulatory approvals from the SEC and other regulatory authorities.

He commended the shareholders for their support and 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.(NAN)

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