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Tag: Transcorp Hotels

  • Transcorp Hotels lists N10b bond on Nse, Fmdq

    Transcorp Hotels lists N10b bond on Nse, Fmdq

    Transcorp Hotels Plc – the hospitality subsidiary of Transnational Corporation of Nigeria Plc, yesterday listed its Series 1 N10billion  bond on the Nigerian Stock Exchange (NSE) and FMDQ OTC Securities Exchange.

    The company successfully closed its Series 1 & 2 bonds at the last quarter of 2015 and has raised a total of N19.758billion. Series 1 which is now listed, is a 7-year bond issued at 16.00 per cent fixed rate and maturing in 2022.

    With this development, the company’s bonds are now available at the bond markets, and the investing public can trade and derive value from their investments. Such a major accomplishment reiterates the company’s resolve to continuously deliver value to all its stakeholders.

    During the event at the NSE, the Managing Director/CEO, of Transcorp Hotels Plc, Valentine Ozigbo, expressed his excitement over the successful completion of the company’s Series 1 & 2 bonds.

    He said  Series 1 was oversubscribed by 30 per cent,  while Series 2 was 98 per cent subscribed, indicating a testimony of undeniable investor confidence to the achievements and leadership of the company.

    “By successfully raising these funds, we now have sufficient funding for our immediate priority projects, especially the upgrade and expansion of the multi –award winning and iconic Transcorp Hilton, Abuja,” Ozigbo said.

  • Transcorp Hotels floats N10b bond for expansion

    Transcorp Hotels floats N10b bond for expansion

    Transcorp Hotels Plc has launched a N10 billion bond issue to provide complementary finance for the upgrade of the company’s flagship Hotel, Transcorp Hilton Abuja, and construction of a multipurpose banquet centre.

    The N10 billion Series 1 Senior Seven-Year 16.0 per cent fixed rate unsecured bonds 2022 is being issued under the N30 billion medium term bond programme of the company. The bond issue is fully underwritten by FSDH Merchant Bank Limited and United Capital Plc.

    The new bonds will carry a amortised gross coupon of 16.0 per cent per annum for a period of seven years. The redemption on maturity, expected to be 2022, will be at 100 per cent of the nominal amount of the bonds. The bonds are available in denominations of N1,000, and will be listed on the main market of the Nigerian Stock Exchange and also the FMDQ OTC platform for enhanced tradability.

    FSDH Merchant Bank Plc is the lead issuing house, while United Capital Plc and Stanbic IBTC Capital Limited are joint issuing houses. FSDH Merchant Bank and United Capital Plc are the joint underwriters to the bond issue.

    The launching of the bond issue followed approvals from relevant regulators including Securities and Exchange Commission (SEC) and National Pension Commission (Pencom), which has issued a certificate of “PENCOM Compliance” to enable participation by Pension Fund Administrators (PFAs) in the bond.

    Managing Director, Transcorp Hotels, Valentine Ozigbo, said the net proceeds from the bond issue would be used as part of the financing for the upgrade of the Transcorp Hilton Abuja and the development of a 5,000-seater multipurpose Banquet centre.

    “The availability of funds enables us to enhance our financial flexibility by diversifying our sources of funding while significantly extending the maturity of the group’s funding and ensuring optimal capital mix. We are delighted by the investor reception for Transcorp Hotels in the bond markets,” Ozigbo said.

    Transcorp Hotels, the hospitality subsidiary of Transnational Corporation of Nigeria Plc, owns and operates Transcorp Hilton Abuja and also holds 100 per cent interest in Transcorp Hotels Calabar Limited, which owns and operates the Transcorp Hotel in Calabar

     

  • Shareholders endorse Transcorp Hotels’ IPO amidst rift

    Shareholders endorse Transcorp Hotels’ IPO amidst rift

    AMIDST growing rift over the propriety or otherwise of the Initial Public offer of Transcorp Hotels Plc, shareholders under the aegis of the Constance Shareholders Association of Nigeria (CSAN), have passed a vote of confidence on the management and board of the company, assuring the former of its support as it prepares to make perfect the IPO.

    Speaking with The Nation over the weekend, Mallam Shehu Mikhail, a retail shareholder, and leader of CSAN described the proposed IPO by Transcorp Hotels Plc as a welcomed development.

    The CSAN boss, who spoke on behalf of his group after its monthly stakeholders’ meeting, said the IPO presents fresh an opportunity for prospective investors interested in growing their investments in the hospitality sub-sector of the economy.

    “Without fear of contradiction, I want to assure prospective investors that our shareholders’ group spread across the six geopolitical zones of the country is in full support of the IPO by Transcorp Hotels Plc because it is a good deal anytime, any day,” he stressed.

    Pressed further, Mikail said considering the positive fundamentals of the Transcorp’s hotel business, it is necessary for stakeholders to rally round the company to ensure that the IPO is subscribed.

    CSAN’s view is quite at variance with the view being canvassed by the Independent Shareholders Association of Nigeria (ISAN), which made had written two separate letters to the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) urging the regulators to discountenance moves by the company to pursue its IPO.

    ISAN said that their demand became imperative following serious breach of operating capital market laws by the regulators.

    ISAN, in letters signed by Sir Sunny Nwosu and Mr Adebayo Adeleke, National Coordinator and General Secretary respectively described the approval for the recently concluded offer of the shares of Trancorp Hotels as criminal and the height of regulatory impunity.

    Reacting to the shareholders’ position, Transcorp Management said, “The issue is whether the shareholders of Transnational Corporation of Nigeria Plc (“Transcorp”) are entitled by law to approve the change of status of Transcorp Hotels Plc (“TranscorpHotels”) (formerly a private company) to a public company, its initial public offer (IPO) and subsequent listing by the Nigerian Stock Exchange.

    “The regulators would not have approved the process if the consent/approval of the parent/holding company shareholders (Transcorp) were required by law and not obtained.

    “The case would have been different if Transcorp was hiving off a business (which is not the situation here) – then SEC approval will be required based on existing SEC Rules. But here, TranscorpHotels is simply going public and asking for subscription of its share from the public.“

  • Transcorp, Hilton seal Port Harcourt hotel deal

    Transcorp, Hilton seal Port Harcourt hotel deal

    Transcorp Hotels Plc, the hospitality subsidiary of Transnational Corporation of Nigeria Plc, has signed an agreement with Hilton Worldwide, to develop a 250 guest room Hilton Hotels & Resorts-branded property in Nigeria’s garden city, Port Harcourt.

    According to a statement, the Transcorp Hilton Port Harcourt will be situated at Evo Road in the city and will be a full-service, upscale hotel featuring almost 1,400sqm of state-of-the art conference facilities and meeting rooms, alongside stylish and creative  leisure facilities including six restaurants and bars, a gym, spa, pools, and tennis and squash courts, all targeting Nigeria’s burgeoning middle class.

    This is the third partnership between Transcorp Hotels Plc and Hilton Worldwide which is creating a portfolio of world-class hotels in the country, including the award-winning Transcorp Hilton Abuja – named Nigeria’s leading hotel – along with the Transcorp Hilton Lagos which is expected to open in 2017.

    This announcement comes right on the heels of Trancorp Hotels’ initial public offer (IPO) to raise N8 billion to pat-finance the development of the new hotel projects in Lagos and Port Harcourt. The offer closed about four days ago.

    Speaking on the deal, Senior Vice President, Development, Europe & Africa for Hilton Worldwide, Patrick Fitzgibbon, said: “We are delighted to once again be partnering with Transcorp Hotels Plc and further cementing our long-standing relationship to introduce our famous Hilton Hotels & Resorts brand to Port Harcourt. In 2014 the country became the largest economy in Africa, and this fast paced growth is expected to continue for the coming years. This announcement further strengthens our growing hotel portfolio in the country – within which our core brand Hilton is at the forefront.”

    Speaking at the signing ceremony, Managing Director/CEO of Transcorp Hotels Plc, Valentine Ozigbo remarked: ‘We are excited to have achieved such a significant milestone in our hospitality expansion plan. It fully underscores our commitment to excellence and quality, and positions usto deliver superior returns to our stakeholders. Our long-standing relationship with Hilton Worldwide has been and remains very strategic in ensuring that our hotels are or will be market leaders, providing world-class guest experiences and hospitality to suit a diverse clientele base in Abuja, Lagos and Port-Harcourt.”

    Also, Global Head, Hilton Hotels & Resorts, Rob Palleschi, said: “With our long-standing success and history in the country, the Hilton Hotels & Resorts brand is well-known across Nigeria’s domestic and international communities. I have no doubt that Transcorp Hilton Port Harcourt will help to reinforce our reputation as the dynamic and innovative brand and forward-thinking global leader of hospitality. It is great to see the growth and success of the brand in this key strategic market.”

    With its abundant supply of natural resources, well developed financial, communications and legal sectors and the second largest stock exchange on the continent, Nigeria is regarded as an economic powerhouse within Africa. With this comes an increase in the need for travel, leisure and hospitality in various cities across the continent. Hilton Worldwide is strategically positioned to fill the gap with the creation and development of new hotels and resorts to provide world class hospitality and lasting memories.

  • Transcorp Hotels opens IPO

    The Board and Management of Transcorp Hotels Plc  held a “Facts behind the Offer” presentation at The Nigerian Stock Exchange at the weekend in connection with its Initial Public Offering (IPO) of 800,000,000 ordinary shares of 50 kobo each at N10 per share.

    The offer, which opened on  September 25, is expected to close on October 17, this year.

    Transcorp Hotels is the hospitality subsidiary of Transnational Corporation of Nigeria Plc. The company’s vision is to create maximum and sustainable value for stakeholders, as well as to build Africa ‘s choice hospitality assets underpinned by excellence, entrepreneurship and execution.

    Transcorp Hotels will focus on Nigerian expansion in the short to the mid-term and thereafter develop a strong African footprint in high population and competitive cities. Over the next five years, the company will take a phased approach in developing high-end hotels and apartments in prime locations, including Ikoyi, Port Harcourt and Abuja .

    In addition to the new developments, the Transcorp Hotels has also commenced the facelift of the Transcorp Hilton Hotel, Abuja  to consolidate its position as the premier hotel destination in Nigeria. This will involve the modernisation of the hotels core facilities for which the company plans to spend $57.5 million (N9.2 billion) over the next three years. The funding for this will be sourced from the company’s internal operating cash flows.

    Manging Director/Chief Executive Officer Transcorp Hotels Plc, Mr Valentine Ozigbo, said: “The  hospitality industry is fast becoming more competitive with the presence of international brands in recent years. We have a strong brand and success story in Nigeria as well as good long term relationships with established suppliers in Nigeria.