Core investors and shareholders of Transcorp Hotels Plc have authorised the Board of Directors to raise N10 billion in new equity capital from shareholders as part of efforts to strengthen the capital base of the hotel and tourism company.
At the Extraordinary General Meeting in Lagos, shareholders approved new capital raising through a rights issue. Transcorp Hotels, owners of Transcorp Hilton Abuja and Transcorp Hotels, Calabar, has the mandate to issue 2.66 billion ordinary shares of 50 kobo each at N3.76 per share. The rights will be pre-allotted to existing shareholders on the basis of seven new ordinary shares for every 20 ordinary shares of 50 kobo each held as at the qualification date. The shares will be issued from the authorised share capital of the company, which is at N7.50 billion of 15.0 billion ordinary shares of 50 kobo each. Post-offer fully paid-up share capital will be N5.13 billion of 10.26 billion ordinary shares of 50 kobo each. Chairman, Transcorp Hotels Plc, Mr. Emmanuel Nnorom said the endorsement by shareholders empowers the board and management to look to the future with confidence despite the current harsh operating environment.