Hospitality company, Transcorp Hotels, has released a statement to notify its shareholders of its proposed right issues after an Extra-Ordinary General Meeting was held regarding it on Monday, June 29, 2020. This comes a month after Transcorp stated that it's 2020 result will be impacted by Coronavirus.
In a statement obtained by AllNews, Transcorp Hotels stated that "In compliance with Rule 330 of the Rules and Regulations of the Securities and Exchange Commission, notice is hereby given to the existing shareholders of Transcorp Hotels Plc (“Transcorp” or “the Company”) that the Company will be offering by way of rights, 2,659,574,468 ordinary shares of 50 kobo each at N3.76 per share.
"This is pursuant to the approval received from the Company’s shareholders at the Extra-Ordinary General Meeting held on Monday, June 29, 2020. Applications for approval of the Rights Issue have now been filed with the Securities and Exchange Commission and The Nigerian Stock Exchange, and the qualification date for the Rights Issue was July 13, 2020 (in line with extant regulations)
"The Company expects the Issue to open and close within the month of August 2020, however, the exact dates shall be determined by the timing of regulatory approvals."
AllNews had reported that Transcorp stated that it's 2020 result will be impacted by Coronavirus, "Transcorp Hotel plc started the year 2020 optimistic with detailed plans and budget to surpass the N20bn revenue performance achieved in 2019. With the Global Coronavirus Pandemic, the hospitality industry has been negatively impacted." Transcorp Hotel said in the statement seen by AllNews.
The company added that "Nigeria has witnessed an increase in confirmed cases which led to the closure of airports and flights and an official lockdown of the FCT issued by the Federal Government to ensure the effective combat of the virus. All of these have negatively impacted the hotel and its business activities in this period.
"The Company anticipates that its future results of operations, including the results for 2020, will be materially impacted by the coronavirus outbreak. However, given the speed and frequency of continuously evolving developments with respect to this pandemic, the Company cannot reasonably estimate the magnitude of the impact on its results and its operations, and, if the outbreak continues on its current trajectory, such impact could grow and become material to its liquidity or financial position."