Shareholders of Transcorp Hotels Plc, have authorised the board of directors of the Company to raise N10 billion in its proposed rights issue to boost its balance sheet.
The shareholders gave their approval at the Extraordinary General Meeting (EGM) of the Company held yesterday in Lagos.
The Company will issue 2.66 billion Ordinary Shares of 50 kobo each by way of a rights issue to the shareholders 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 50 kobo each.
The chairman of Transcorp Hotels, Mr Emmanuel Nnorom said, This approval and endorsement of shareholders empowers the board and management to look to the future with confidence despite the current harsh operating environment.
Speaking at the meeting, managing director/CEO of Transcorp Hotels, Mrs Dupe Olusola, stated that 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 laurels 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.
She further added that the world has been greatly impacted by the COVID-19 pandemic, with the hospitality industry being one of the hardest hit.
She however said, We are optimistic about a great recovery for the sector and your approval today shows that you also share in this mindset. We will continue to play our part in ensuring a significant recovery to the Nigerian hospitality industry.
Also, a non-executive director of the Company, who is also a representative of the Ministry of Finance Incorporated on the Board, Mr 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.
Transcorp Hotels Plc is the hospitality subsidiary of Transnational Corporation of Nigeria Plc. The Company owns and operates Transcorp Hilton Abuja and also holds 100 percent interest in Transcorp Hotels Calabar Limited, which owns and operates the Transcorp Hotels in Calabar