Transcorp Hotels’ N8bn IPO gets board approval

*Hilton to open 2 new hotels in Nigeria in 2017

The plan by Transcorp Hotels Plc, formerly Transnational Transcorp Hotels N8bn IPO gets board approval 2Hotels and Tourism Services Limited, to do an Initial Public Offering on the Nigerian Stock Exchange has been boosted by the company’s board. The company’s board of directors endorsed the plan at a completion board meeting for the purpose in Lagos, the company said. The company, which is the hospitality arm of conglomerates Transnational Corporation of Nigeria, plans to offer 800,000,000 ordinary shares of 50 kobo each at N10 per share. According to the company, the proceeds of the offer, which will open on September 24 and close on September 30, 2014, will be used to part-finance its expansion projects – specifically for the construction of two new hotels in Ikoyi, Lagos and Port Harcourt in Rivers State.

Transcorp Hotels N8bn IPO gets board approvalThe Managing Director and Chief Executive Officer, Transcorp Hotels, Mr. Valentine Ozigbo, explained that the move was in line with the growth being witnessed by the country’s hospitality industry. He said, “Nigeria’s hospitality industry is experiencing significant growth, with major demand for expanded capacity and enhanced quality and service. THP is ideally positioned, as the existing owner of the largest number of hotel rooms in Nigeria, and partnered with one of the world’s most prestigious hotel brands, Hilton Worldwide, to leverage this demand.” He disclosed that the proceeds of the IPO would be used to fund the development of two new Transcorp Hilton hotels – one in Ikoyi, Lagos, and the second in Port Harcourt. According to him, both hotels are meant to be completed in 2017. “We are delighted to be able to offer the Nigerian public the opportunity to participate in our future success. This offer reiterates our commitment to creating sustainable value for all stakeholders,” he told journalists after the completion board meeting.

Also commenting on the plan, the President, and CEO of Transcorp Plc, Mr. Emmanuel Nnorom, said the offer should excite the company’s existing shareholders and members of the public. This, he explained, was because it would open up ownership of “what is regarded as the most strategic piece of real estate in Nigeria,” enabling Nigerians to share in the fortunes of the company, which has a great track record, healthy financials and strong corporate governance. Transcorp Hotels, the hospitality subsidiary of Transcorp Plc, owns and operates the Transcorp Hilton Abuja and the Transcorp Hotels Calabar. It was gathered that Transcorp Plc holds 88 per cent stake in Transcorp Hotels through Capital Leisure and Hospitality Limited with the remaining 12 per cent stake held by the Federal Government. The company had filed an application for IPO on the NSE earlier in the month. According to the company, its vision is to be the premier hospitality company in Africa, creating maximum and sustainable value for stakeholders, as well as building Africa’s choice hospitality assets underpinned by excellence entrepreneurship and execution.

http://www.punchng.com/business/capital-market/transcorp-hotels-n8bn-ipo-gets-board-approval/

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Edition 79October 2014

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