By Our Correspondent
Lagos (INVESTADVOCATE)-Shareholders of Transnational Corporation of Nigeria (TRANSCORP), Thursday endorsed the Company’s proposed Rights issue.
Shareholders of the Company endorsed this at its Extraordinary General Meeting (EGM) held in Lagos Nigeria.
Late last month, the firm in a Notice to the Nigerian Stock Exchange (NSE) said it intends to increase its Authorised Share Capital from N18 billion to N22.55 billion Ordinary Shares of 50 Kobo each through the Rights Issue.
For the Firm to increase its Authorised Share Capital, it intends to create 9 billion new Ordinary Shares of 50 kobo each and to authorise the Directors to issue up to 13 billion Ordinary Shares of 50 kobo each from the Company’s Share Capital by way of Rights Issue.
Transcorp has said it would use the net proceeds from its planned rights issue to finance its investments in power projects. The Rights issue may likely open in the second quarter (Q2) of year 2013.
Boniface Okezie, Chairman of the Progressive Shareholders Association of Nigeria (PSAN) said that there is every reason for the Company to raise funds considering its proposed plan to go into power generation.
According to Okezie, the issue of power generation is a capital intensive one and as such requires enough funds.
Tony Elumelu, Chairman of the Company had said last year that Transcorp Energy Limited, the energy subsidiary of Transcorp, had signed a partnership agreement with Symbion Power, a US-based energy company, which would lead to a significant increase in power production, for the benefit of the nation.
As at the time of filing in this Report, the price is yet to be determined and the Rights is subject to regulatory approval.
