Don't Miss


Home   >   Business   >   Industries   >   Economy   >   Transcorp’s Price Rally Continues, Hits N1.33

Transcorp’s Price Rally Continues, Hits N1.33

By on April 7, 2011

The shares of Transnational Corporation of Nigeria Plc (Transcorp) rallied further Wednesday at the stock market as investors continued to react favourably to the acquisition of a significant stake in the company by Heirs Holdings Limited last week.
Transcorp shares rose by 4.7 per cent to close at N1.33 per share just as the Nigerian Stock Exchange (NSE) confirmed the acquisition by Heirs Holdings Limited.

The acquisition by Heirs Holdings has been propelling the equity, leading to gain of the maximum daily five per cent allowed in the market, rising from N1.06 to close at N1.33 Wednesday. Market analysts had said that the trend portended a good sign for shareholders of the company.

The market capitalisation of Transcorp has hit N28.533 billion following a price rally engendered by high demand for the shares by investors who have seen the future prospects in the acquisition by Heirs Holdings Limited.
Before the transaction, the market capitalisation of Transcorp stood at N22.740 billion but has appreciated by 25 per cent to N28.533 billion within four days.

Confirming the Transcorp transaction, the NSE said in a statement that on Thursday, March 31, 2011, HH Capital Limited, through its brokers – BGL Securities Limited informed the bourse of its desire to cross 1, 970, 754, 364 units of(Transcorp) shares from willing sellers.

“In the course of the review of the transaction, The Exchange realised that one of the willing sellers was legally not in position to engage in such a transaction and this was immediately cancelled. The Exchange has since informed Transcorp Plc of the details of the remainder of the transaction.

“We wish to assure the investing public that the parties involved in the transaction have been issued letters to attend an all-parties meeting consistent with our desire to forge a ‘free market’ bound by rules and best practices,” the NSE explained.
Heirs Holdings, which has Tony Elumelu as Chairman, has interests in the financial services, real estate and resources sectors.
The company had explained in the statement that the investment in Transcorp was in pursuant of its strategy of creating value and catalysing the economic growth of Africa through its long term investment approach.

The statement further noted that Transcorp shareholders would benefit from Heirs Holdings’ track record of value-creation, particularly smaller shareholders who subscribed to the original vision of the company as a means of mass participation in Nigeria’s economic success.

“Heirs Holdings will engage positively with the board and management of Transcorp, so that the transformation envisaged for the company can be implemented and conducted in a spirit of cooperation, for the greater good of all shareholders,” the statement said.
source : Thisday