By Peter OBIORA investadvocate

Lagos (INVESTADVOCATE) –The recent acquisition of strategic stake in Transnational Corporation of Nigeria Plc (Transcorp) by Heirs Holding Limited will create value for small investors of Transcorp.

Victor Ogiemwonyi, a Stockbroker and Chief Executive Officer (CEO) of Partnership Investment Company Limited made this affirmation in an interview from his Company and made available to investadvocate Monday April 11 2011 in Lagos Nigeria.

Ogiemwonyi in the interview session affirmed that there was a need for a core investor who will bring focus and create value to the over 300,000 shareholders of the firm.

“The small investor will not get value for a long time to come if this did not happen. Can you imagine what will happen if the new Core investor was to focus on the tourism industry, sell off those assets it does not need to finance the expansion into this new industry that is waiting to be explored?” he said.

According to him, the tiny country of Gambia gets $1.0 billion from a tourist industry that occupies the space not more than half of Victoria Island. “It is not rocket science that Transcorp has not had any clear vision since its initial conception. It has dabbled in everything from oil and gas where it has no competence to the disaster called NITEL” Ogiemwonyi affirmed.

He further said that the Heir Holdings acquisition of strategic stake in Transcorp was good news for the Market; because it has moved the Market positively. “In fact the transaction has already created value for Transcorp investors who have seen a steep jump in the price of their Transcorp shares” he said.

As at the time of filling in this report, Transcorp shares closed on the Floors of the NSE April 08 2011 at N1.45 and as at today Monday April 11 2011, it closed at N5.09; indicating a rise of 4.95%.

Ogiemwonyi said liquidity is gradually returning to the Market. “This transaction is a signal that many similar transactions are in the wings. The crash of the Stock Market in the last 3years has created value of a different sort, shares are trading at discounts that will encourage investors to jump into the Market once the economy starts to recover and the political environment is conducive for Business. The game changer will be how well the elections turn out” he affirmed.

This is coming on the heels of announcement Monday April 04 2011 by Heir Holdings that it has acquired a strategic stake in Transcorp.

Heir Holdings said that this move was in pursuance of its strategy of creating value and catalysing the economic growth of Africa, through the Firm’s long-term investment approach.

The Firm further said that Transcorp shareholders will benefit from their track record of value-creation, particularly smaller shareholders who subscribed to the original vision of the Company as a means of mass participation in Nigeria’s economic success.

“Heirs Holdings has structured its investment to ensure that all shareholders will continue to participate in the listed Company and benefit from the considerable upside believed to be represented in Transcorp” the Company said.

Meanwhile Ogiemwonyi has said that the Nigeria’s Exchange has not erred by allowing the recent block sales of Transcorp shares contrary to some school of thought that the transaction was illegal and unethical.

According to him, the NSE’s Monitoring Department would have noticed the huge trade transaction and demand from the Broker the identity and circumstances of such huge dealings.

“Once it is established that nothing untoward happened it will be allowed. The only requirement is for the investor to inform the Securities and Exchange Commission once the threshold of 5% has been reached” he said.

He further said that the Transcorp shares are publicly listed and can be bought by anyone who wants to buy. “They were traded at the Stock Market by known Brokers and on behalf of a known investor” Ogiemwonyi said.