Transcorp Hotels Turns To Right Issue As It Hunts For N10bn

Transcorp Hotels Plc plans to raise N10 billion through the right issue after the board of directors voted in favour of the fundraising. AllNews learnt that the approval was obtained during the Extraordinary General Meeting of the Company.

The Chairman of Transcorp Hotels Plc, Emmanuel Nnorom, said the approval will boost the company's confidence going into the future despite the current harsh operating environment in Nigeria.

In a statement seen by AllNews, Transcorp Hotels Plc said the company will "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."

It added that 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."

While speaking about the optimism of the company amidst the economic downturn in the hospitality sector caused by COVID-19 pandemic, the Managing Director/CEO of Transcorp Hotels Plc, Dupe Olusola,said "our track record of excellent service delivery has positioned us as the first choice for international and local guests alike noting, 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."

Also commenting on the fundraising, a Non-Executive Director of the Company, who also represents the Ministry of Finance Incorporated on the Board, Alexander Adeyemi, said "Given the challenging times the hospitality industry faces, it has become critical to inject funding into the business for a stronger balance sheet. Transcorp Hotels has maintained a history of excellent performance in the hospitality industry, and this is a bold step towards the achievement of its long-term goals."