Lagos - The Transnational Corporation of Nigeria's (Transcorp) share price has surged on the back of significant investments the company has made in key local sectors of the economy in recent months.
The company’s share price opened on Monday at N3.00 up from 50 kobo not more than two years ago.
Chairman of Transcorp, Tony Elumelu, said following major acquisitions in power and agribusiness, new initiatives in its hotel and tourism business and the commencement of production from its existing oil block, Transcorp shareholders were already reaping rewards.
According to Elumelu, Transcorp has since the conclusion and listing of the rights issue, made several important business decisions which will have significant impact on its fortunes.
Some of the strategic initiatives he outlined include, the completion of the acquisition of 100 percent equity stake in the 1000MW capacity Ughelli Power Plc through its subsidiary – Transcorp Ughelli Power Ltd (TUPL).
TUPL paid N48.3 billion for the complete ownership of the plant.
TUPL has successfully taken over ownership and physical possession of the plant and plans to raise the output from the current 160MW to at least 1,500MW over the next three to five years.
Further significant progress was shown with the signing of an agreement with Hilton Worldwide to commence the development of a 300 room five-star hotel in Ikoyi, Lagos.
This project will commence in the first quarter of 2014 and will be completed in 30 months.
The hotel is the first of eight new internationally-branded hotels Transcorp plans to build over the next few years.
Transcorp has also completed the acquisition of a site in Port Harcourt for the development of another 300 room five star hotel. The company’s flagship hotel brand, the Transcorp Hilton in Abuja is also undergoing an upgrade.
He said Transcorp’s existing oil block, OPL 281, will begin production before the end of 2014.
Elumelu thanked the company’s shareholders for their support and assured them of further opportunities ahead.
“We have put in place a world class management team and are committed to developing the synergies between our natural resources portfolio and our power interests, creating an integrated energy approach that directly links Nigeria’s natural resource wealth to the daily needs of our people.”
– CAJ News