NIGERIA – Shareholders of Transcorp Hotels Plc have unanimously authorized the Board of Directors to raise N10 billion (US$26 million) in its proposed Rights Issue to fortify its balance sheet against the effects of the surging Covid19 pandemic.

Transcorp’s decision follows a bold move by, Dangote Cement PLC and MTN Nigeria Communications PLC to raise corporate bond and commercial papers in the capital markets despite economic shocks occasioned by the COVID19 pandemic.

According to BusinessDay Nigeria Transcorp Hotels, owners of Transcorp Hilton Abuja and Transcorp Hotels Calabar,  received the approval early this month at the Extraordinary General Meeting (EGM) of the Company in Lagos.

The board of Transcorp Hotels now has the greenlight to issue 2,659,574,468 Ordinary Shares of 50 kobo each by way of a Rights Issue to the Shareholders.

The rights issue according to Market Screener will be based on seven new Ordinary Shares for every 20 Ordinary Shares of 50 kobo each held at a price of N3.76 per share.

The shares will be issued from the authorised share capital of the Company which is currently at N7.5 billion comprising of 15 billion Ordinary Shares of N0.50 each.

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.

The Chairman of Transcorp Hotels Plc, Mr Emmanuel Nnorom noted that the approval and endorsement of shareholders empowered the Board and management to look to the future with confidence despite the current harsh operating environment.

Speaking at the meeting, Mrs Dupe Olusola, Managing Director/CEO of Transcorp Hotels Plc also welcomed this approval adding that ‘our track record of excellent service delivery has positioned us as the first choice for international and local guests alike.

Mrs Olusola further noted that the hotel chain was not resting on its oars but was 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.

She noted with concern that the world has been greatly impacted by the COVID-19 pandemic, with the hospitality industry being one of the hardest hit.

The MD of Transcorp however noted that they “are optimistic about a great recovery for the sector and your approval today shows that you also share in this mindset.”

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE