Transnational Corporation of Nigeria lists its achievements in 2013 at the Nigerian Stock Exchange
| By Maureen Chigbo | Dec. 23, 2013 @ 01:00 GMT
TRANSNATIONAL Corporation of Nigeria Plc, Transcorp, took its turn on December 9, to present its 2013 achievements to the Nigerian Stock Exchange, NSE. At the “facts behind the figures” presentation, Transcorp’s showed that the company had benefited from its investments across key sectors of the Nigerian economy. In the agribusiness sector, the company made new investments in its Terago food processing subsidiary. This followed its recent attainment of global certifications in international safety standards for its juice concentrate products. In the hospitality sector, Transcorp has commenced the refurbishment and expansion of Transorp Hilton Hotel, Abuja. In oil and gas, the company expects to see production start on oil block OPL 281 next year.
The key accomplishments of Transcorp in 2013 include the acquisition of the 1000MW Ughelli Power Plant in November, after paying a bid price of $300 million. The Ughelli purchase is the first major transaction under the programme. Earlier this year, Heirs Holdings which has substantial investment in Transcorp, committed $2.5 billion to power investments throughout Africa under the Power Africa initiative. The transformation of Transcorp is attributed to the influence of Heirs Holdings, the pan-African proprietary investment company with interests in key economic sectors. Transcorp is part of the major investments Heirs holdings made recently.
Transcorp’s strategy of seeking synergistic investments across the value chain in Nigeria, with the power purchase complementing existing investments in oil and gas, has been welcomed by investors, who are beginning to appreciate the strong strategic direction Heirs Holdings brings to the conglomerate.
Management officials, who visited the NSE to make the presentation to stockbrokers and analysts, highlighted key fundamentals of the company’s business dynamics that have driven its recent impressive performance on the stock market.
Tony O. Elumelu, chairman Heirs Holdings, who is also the chairman of Transcorp, said: “Transcorp represents the new Nigeria—dynamic, globally competitive, transparent and founded on good governance. We promised our investors that they would reap the rewards of their patience, and now we have built a company that is not only sharing the tangible fruits of our labour, it is also a vehicle for all Nigerians to gain access to the opportunities that our country offers.”
Elumelu said: “Transcorp is one of the few ways through which institutional investors can obtain diversified access to Nigeria’s key economic sectors, from power and hospitality to oil and gas and agriculture. Our long term, sustainable investment philosophy reflects Heirs Holdings’ ability to create value, just as we did with the United Bank for Africa, which started as a national bank and is now one a pan-African institution.”
Speaking at the Exchange, Obinna Ufudo, Transcorp’s chief executive officer, said, “We are delighted to be able to come to the Exchange having delivered on our promises. We believe the Transcorp transformation is only the beginning and we look forward to recording further success for our shareholders, stakeholders and staff. We also pay tribute to the critical role our leading shareholder, Heirs Holdings, has played in catalysing change.”
Transcorp’s performance has been transformed from a loss of N8.88 billion in 2007, to a profit after tax, PAT, of N1.257 billion in 2011. This was improved in 2012 with a PAT of N2.527 billion, and by the end of September 2013, Transcorp recorded a profit before tax of N5.1 billion for the first three quarters of the year.
Transnational Corporation of Nigeria Plc is a publicly quoted conglomerate with a diversified shareholder base of more than 300,000 investors, the most prominent of which is Heirs Holdings Limited, a pan-African proprietary investment company.