The Securities and Exchange Commission (SEC) has approved a one-week extension for the Transnational Corporation of Nigeria (Transcorp) rights issue to enable wider shareholder participation.
Transcorp is issuing 12.906 billion shares of 50 kobo each at N1 per share via rights issue to raise fresh funds to finance its power projects.
The issue was expected to close May 31. However, following the application by the company, the commission approved that the acceptance period for the offer be extended to June 7, which is this Friday.
The company had said that the rights issue option was decided on by the board and approved by the shareholders because of the importance of equity funding as major catalyst towards achieving rapid growth in its business model.
Transcorp Consortium had emerged the highest and preferred bidder for the Ughelli Power Plc under the federal government's power privatisation exercise.
And the proceeds of the right issue (about N13 billion) would be used to fund the acquisition.
Transcorp has already signed a partnership agreement with General Electric Company (GE) to revamp the power and transportation sectors in the country.
GE, which is a global infrastructure, finance and media company and has been active in Africa for several decades. And the agreement with Transcorp allows for the provision of technical support and equity investment in the power plant. Other areas of collaboration include projects in the transport sector, specifically in the area of railway.
The Chairman, Transcorp, Mr. Tony Elumelu, said recently that apart from the power project, the conglomerate has started the execution of its expansion plans to fully utilise the massive unutilised land on its Transcorp Hilton Abuja site and roll out new hotels across major economic centres in Nigeria, such as Lagos and Port Harcourt.
According to him, the conglomerate has taken several significant steps in its key sectors, namely, agri-business, energy and hospitality that would see Transcorp taking its rightful place as a key player in the economic development and transformation of Nigeria.