Transcorp bounces back, lists 2.8m additional shares

Proshare

August 30, 2007/aojo@transcorpnigeria.com

 

 

Lagos, Nigeria – August 30, 2007:    Transnational Corporation of Nigeria Plc (TransCorp) today in Lagos listed 2, 899,326, 100 ordinary shares of 50k each. The shares were sold during its initial public offering (IPO), which ended in February. The group raised N21, 744,945,750 through the offering. Over 257,000 investors subscribed for shares in the offerings.

 

Based on these figures, TransCorp, which is less than three years old, now has one of the broadest shareholder bases in the country in addition to raising approximately one billion dollars since inception.

 

TransCorp has demonstrated dynamism and immense capital raising skills by closing some of the most high profile deals in the past two years.

 

 

In 2005, TransCorp bought 51% stake in the Abuja Hilton; a year later, it paid for 51% of NITEL. Through the purchase, it also took over the mobile company MTEL.

 

In recent weeks, the group has embarked on the Strategic Turnaround of its telecoms subsidiaries, NITEL and MTEL. As part of the turnaround programme, TransCorp announced the launch of Project S.P.A.C.E. (Speed, Performance, Action, Cashflow and Execution), a 100-day plan. 

 

Accomplishments recorded under Project SPACE include restoration of 70% of NITEL backbone, restoration of MTEL in 16 cities and the consummation of a technical partnership deal that will attract revenue of up to N35 Billion with CISCO Inc, Dimension Data and Cable & Wireless.

 

In addition, TransCorp has secured funding for NITEL’s fibre optics network as well as complete the conceptualization phase of a real estate mixed use development in Ikoyi.

 

According to Tom Iseghohi, the Group Managing Director, “TransCorp is resolutely committed to maintaining its leadership in the turn around of underperforming companies. We have demonstrated our resolve with the accomplishments since we began the transformation less than two months ago.

 

Mr. Iseghohi explained that the ‘new’ TransCorp will be focused on meeting the expectations of those who have invested capital and, just as important, their faith, in the group, predicting that in five years, TransCorp will be one of the largest and most successful companies in Africa with revenues of between US$3- US$5 billion per annum, and market capitalization of between US$30 billion to US$50 billion in the same period.

 

Describing NITEL as possessing unrivalled potential, he pointed out that in addition to its SAT 3, the only Nigerian telecoms company to have direct satellite link, the company also has fibre optic and CDMA platforms. According to the Group Managing Director, ‘When you look outside

 

Nigeria and the rest of the world, it is very difficult to find a telecommunications company that has multiple platforms. NITEL is exploring the best means for bundling all the services that these platforms can offer so that it can deliver higher quality and more pocket-friendly telecommunications service for all groups of users.’

 

Adedayo Ojo, Vice President, Corporate Affairs of the group, noted that the listing was the fulfillment of the group’s original promoters’ dreams of building a major player in the Nigerian and regional economy, which would be owned by all classes of Nigerians. He urged investors to watch the group’s moves in the near future, even as it would be holding its first annual general meeting in the coming months, where it would reveal the significant value-unlocking and creating milestones reached by the group.


For further information on TransCorp, please visit our website: www.transcorpnigeria.com. Contact Adedayo Ojo by email; aojo@transcorpnigeria.com or by phone on 01 2691024-501 2691024-5 ext. 1404 or 0803 4035172

 

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