Transcorp Plc, a leading Nigerian conglomerate, has announced the successful completion of its share capital reconstruction, aimed at enhancing long-term shareholder value and streamlining its capital structure.
The restructuring involved consolidating the company’s issued shares at a ratio of 1 to 4, reducing the total number of issued and fully paid shares from 40.6 billion to 10.2 billion. Despite the reduction in shares, the total value of shareholders’ investments remains unchanged, with no dilutive impact.
Commenting on the development, Transcorp’s President and Group CEO, Owen Omogiafo, emphasized the strategic nature of the reconstruction.
Transcorp Plc, a prominent Nigerian conglomerate, has declared the successful finalization of its share capital reconstruction, with the goal of improving long-term shareholder value and simplifying its capital structure.
The restructuring involved consolidating the company’s stocks at a 1 to 4 ratio, reducing the total number of issued and fully paid shares from 40.6 billion to 10.2 billion.
Despite the decrease in the number of shares, the total value of shareholders’ investments remains unaffected, indicating no dilution.
Reflecting on the progress made, Omogiafo stressed the importance of the strategic nature of the rebuilding process.
“This adjustment in shares aligns with our business strategy and expansion goals to enhance shareholder value.
Omogiafo commented that it strengthens our economic base, preparing us for ongoing expansion and creation of value.”
During the consolidation process, shareholders experienced a 75% reduction in their shares, leading to a total share capital of N5.08 billion, consisting of 10.16 billion ordinary shares valued at N0.50 each.
The company verified that it had obtained the required authorization from both the Financial Reporting Council of Nigeria (FRCN) and the Securities and Exchange Commission (SEC) with no issues raised.
Transcorp is looking to update the registration of its remaining shares with the SEC, after receiving confirmation and approval from the Federal High Court, to ensure its operations align with industry norms and show commitment to growth.
