Shareholders of Transcorp Hotels Plc, owners of the iconic Transcorp Hilton Abuja and Transcorp Hotels Calabar, have unanimously authorised the board of directors to raise N10 billion in its proposed rights Issue to fortify its balance sheet.

The approval given at the extraordinary general meeting of the company, which took place on Monday in Lagos, was to issue 2,659,574,468 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 N7,500,000,000 comprising of 15,000,000,000 ordinary shares of N0.50 each, and 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.

Chairman of Transcorp Hotels Plc, 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 Plc, Dupe Olusola, 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 noting, we are not resting on our oars 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 said that the world has been greatly impacted by the COVID-19 pandemic, with the hospitality industry being one of the hardest hit.

“However, 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,” she said.

A non-executive director of the company, who also represents the Ministry of Finance Incorporated on the board, 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.”

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