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FG to increase investment in Transcorp Hilton Hotel

By on October 3, 2014

The Federal Government has said it will increase its investment in Transcorp Hilton Hotel Plc owing to the company’s profitability.

The Director-General, Bureau of Public Enterprises, Mr. Benjamin Dikki, dropped the hint while speaking at the public presentation of the company’s Initial Public Offer in Abuja on Monday night.

Dikki said out of all the government enterprises that were privatised by the bureau, only two of them had not been problematic.

The two firms, according to him, are Transcop and Eleme Petrochemical Limited.

For instance, he said within the last five years, Transcop Hilton Hotels had been paying dividends consistently to its shareholders.

This, he added, was commendable owing to the fact that the company was not yet listed on the floor of the Nigerian Stock Exchange.

Dikki said, “This is a good dividend of democracy that the transformation of President Goodluck Jonathan is bringing to the people. Transcop has been paying very high dividends over the years and the government’s 49 per cent holding, which will now be diluted because government has not yet amen up its right issue and we have enjoyed high dividend from this stock.

“In fact, the government is considering investing further in this company and that will tell you the level of profitability of this company

Also speaking at the event, the Managing Director Transcorp Hilton Hotel Plc, Mr. Valentine Ozigbo, said the hotel was Nigeria’s best example of Public-Private Partnership.

He said in the next five years, the company would take a phased approach in developing high-end hotels in Ikoyi, Port Harcourt, Ikeja and Warri as well as a convention centre and apartment complex in Abuja.

These investments, he added, would enable the company to further increase its dividend payment.

The company is targeting to raise up to N8bn through the IPO of 800,000,000 ordinary shares of 50 kobo each at N10 per share to get capital for the development of new projects.

 

[Punch]