In a strategic move aimed at enhancing shareholder value, Transnational Corporation Plc has revealed plans for a share capital reconstruction.
The proposal, disclosed in a corporate announcement to the Nigerian Exchange Limited, has secured initial regulatory approval from the Financial Reporting Council of Nigeria and the Securities and Exchange Commission.
The reconstruction initiative entails a reduction in the total number of issued ordinary shares of Transcorp through consolidation, at a ratio of 1 for 4.
This action will result in the cancellation of three out of every four ordinary shares held by shareholders, leading to the cancellation of 30,485,992,719 ordinary issued shares of N0.50 each. Consequently, the issued share capital will be reduced to N5.08 billion ordinary shares of N0.50.
United Capital Plc and Vetiva Advisory Services Limited have been appointed as financial advisers for the deal by the company’s board of directors.
Transcorp emphasized that the reconstruction is designed to optimize the company’s capital structure, improve share pricing, and enhance per-share metrics. It aims to maintain the capitalization and percentage holding of each shareholding while improving earnings per share and dividend per share.
Furthermore, the company reported robust financial performance for the year 2023, with a 93.5% increase in profit before tax to N58.8 billion from N30.4 billion in the previous year. Revenue also saw a substantial growth of 47.3% to
