The Nation Newspaper

Tag: Transcorp

  • We ‘ll continue to lead in corporate governance, says Transcorp

    Transnational Corporation of Nigeria (Transcorp) Plc has reiterated its commitments to upholding best practices and good corporate governance.

    With the conferment of the Most Compliant Firm on Transcorp by the Nigerian Stock Exchange (NSE), the conglomerate stated that the recognition would spur it to continue to lead in corporate governance. The award is given to the company which demonstrates the highest degree of compliance with the rules and regulations of the Nigerian Stock Exchange in the year under review. The winning company is also expected to have demonstrated its recognition for the importance of corporate governance.

    Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Tony Elumelu, said the award was a confirmation of the positive changes that the new core investor had brought to Transcorp and would further serve as a motivation for continuing best practices.

    According to him, when Heirs Holdings took over Transcorp in 2011, one of the core objectives agreed at the very first strategy session was the need to transform Transcorp into an institution with world class corporate governance standards in all its processes, reporting and compliance.

    “This prestigious award confirms that we are delivering successfully on our commitment. The NSE’s stamp of approval acts not just as a powerful recognition of our achievements over the past year but also acts as a motivator to inspire us to continue to raise the bar on corporate governance,” Elumelu said.

    Chief executive officer, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Emmanuel Nnorom, said the award confirms that best corporate culture is an integral part of the conglomerate.

    “This highly coveted award means so much for all of us at Transcorp. Our teams have worked tirelessly to meet and exceed the statutory requirements for disclosure and I am delighted to see that this comes not only from a legal and professional obligation but as an integral part of our corporate culture at Transcorp. My heartfelt thanks and congratulations go to every member of the Transcorp team,” Nnorom said.

    The award has further increased investors’ appetite for Transcorp’s shares after third quarter results showed that the conglomerate may sustain its dividend payment, which started in 2013. Key extracts of the interim report and accounts of Transcorp for the nine-month period ended September 30, 2014 showed that turnover leapt by 166.55 per cent. Gross profit rose by 129.6 per cent while operating profit doubled by 112.7 per cent. The conglomerate’s profit before tax grew by 88.5 per cent while profit after tax rose by 130.7 per cent.

    Transcorp’s turnover rose to N31.40 billion in September 2014 as against N11.78 billion in comparable period of 2013. Gross profit also rose from N9.20 billion to N21.12 billion. Operating profit stood at N12.36 billion in 2014 compared with N5.81 billion in 2013. Profit before tax jumped from N5.15 billion to N9.71 billion while profit after tax doubled from N3.58 billion to N8.26 billion.

  • Transcorp Hotels not spinning off from Transcorp

    Transcorp Hotels Plc will remain a subsidiary of Transnational Corporation of Nigeria (Transcorp) Plc and has not started any process to disengage from the parent company, the management of the company has said.

    Managing Director, Transcorp Hotels Plc, Mr. Valentine Ozigbo, said the company was not engaging in any spin off process and its recent initial public offering (IPO) was solely intended to raise funds to finance its business expansion and renewal project.

    Against the background of allegation by a shareholders’ group that the IPO did not follow due process, Ozigbo said the company complied with all extant laws and rules and regulations and duly received approvals of its shareholders, Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE).

    According to him, while Transcorp Hotels Plc is a subsidiary of Transcorp Plc, it is a separate legal personality and its shareholders and board took their decisions to change the name, convert to public a company, do an IPO and list on the floor of the NSE based on legal requirements.

    He noted that prior to the IPO, the two owners of Transcorp Hotels were Transcorp Plc and the Federal Government, which met and approved the change in status and the IPO.

    “Legally and practically speaking, there is no basis or requirement for the shareholders of Transcorp to approve the above activities of Transcorp Hotels. The latter is a company of full legal status with its own shareholders and Board that direct its affairs. Companies and Allied Matters Act (CAMA) (section 33(1) & section 50(1)-(7) provide that any company may, by special resolution (75 per cent shareholders’ approval), change its name or convert from a private company to a public company or a public company into a private company, etc. For the purpose of the IPO and listing, the Investments and Securities Act and SEC Rules require the approval of the shareholders and board of the issuer to offer shares to the public, not its parent or holding company’s shareholders. Whether or not Transcorp Hotels is a wholly-owned subsidiary of Transcorp, the legal status does not change,” Ozigbo noted.

    He pointed out that the SEC and NSE would not have approved the IPO if the consent and approval of the parent or holding company’s shareholders were required by law.

    He noted that Transcorp was not in the process of hiving off a business, which would have required the approval of Transcorp Plc’s shareholders and another separate approval process since shares issuance and spin off require separate approval process.

    “Transcorp Hotels is simply going public and asking for subscription of its share from the public. Transcorp, and its shareholders, is not in any way negatively affected or prejudiced by this development. It continues to be the majority shareholder in Transcorp Hotels, receiving its dividends and consolidating its accounts as required by law,” Ozigbo noted.

    He pointed out that as a mark good shareholder relations and shareholders’ right to know, Transcorp Plc had formally informed its shareholders of the development is its subsidiary, Transcorp Hotels, by publishing a “Letter to Shareholders” from the chairman of Transcorp adding that the parent company could not have informed its shareholders at the last annual general meeting because the IPO was not in view then.

    He said the company would use the net proceeds of the IPO to undertake world-class renewal of its flagship Transcorp Hilton, Abuja and build new hotels in Lagos and Port Harcourt.

    The company also plans to build a world-class banquet facility in Abuja to position the nation’s capital as the conference hub for the continent.

     

  • Transcorp Hilton wins World Travels Awards

    Transcorp Hilton wins World Travels Awards

    Transcorp Hilton Abuja,  has bagged Nigeria’s Leading Hotel 2014 and Nigeria’s Leading MICE Hotel 2014 awards by the World Travel Awards.

    In hospitality parlance, MICE stands for Meetings, Incentives, Conventions and Exhibitions. Transcorp Hilton Hotel is owned by Transcorp Hotels Plc, the hospitality subsidiary of Transnational Corporation of Nigeria Plc.

    ‘’To receive these two prestigious awards in key categories from World Travel Awards is a great honour and an achievement for our hotel and indeed for team members who have and continued to work tirelessly to make ours the leading world class hotel in Abuja.

    Its General Manager, Etienne Gailliez,said: ‘I am delighted that our commitment to the consistent delivery of world class experience to all our guests has been recognised once again by a reputable industry watchdog. I have no doubts that the awards will spur us to work even harder and attain greater heights of excellence.’

  • Transcorp doubles profit to N10b in Q3

    Transnational Corporation of Nigeria (Transcorp) Plc continued in its strides in the third quarter as the conglomerate again doubled its turnover and profit, increasing the prospects for better returns in 2014.

    Key extracts of the interim report and accounts of Transcorp for the nine-month period ended September 30, 2014 showed that turnover leapt by 166.55 per cent. Gross profit rose by 129.6 per cent while operating profit doubled by 112.7 per cent. The conglomerate’s profit before tax grew by 88.5 per cent while profit after tax rose by 130.7 per cent.

    Transcorp’s turnover rose to N31.40 billion in September 2014 as against N11.78 billion in comparable period of 2013. Gross profit also rose from N9.20 billion to N21.12 billion. Operating profit stood at N12.36 billion in 2014 compared with N5.81 billion in 2013. Profit before tax jumped from N5.15 billion to N9.71 billion while profit after tax doubled from N3.58 billion to N8.26 billion.

    The third-quarter performance underlined the continuous improvements in the earnings of the conglomerate in recent period. Interim report of Transcorp for the six-month period ended June 30, 2014 had shown that turnover rose by 177 per cent while group operating profit and pre-tax profit jumped by 145 per cent and 122 per cent respectively.

    The report showed that turnover doubled to N21.2 billion in June 2014 as against N7.67 billion recorded in comparable period of 2013. Gross profit rose from N5.99 billion in first half 2013 to N14.96 billion in first half 2014. Operating profit for half year 2014 was N9.75 billion as against N3.99 billion in comparable period of 2013. Group profit before tax doubled to N8.02 billion in 2014 compared with N3.61 billion in corresponding period of 2013. After taxes, net profit rose from N2.48 billion in 2013 to N6.89 billion in 2014.

    The board of Transcorp recently appointed Mr. Emmanuel Nnorom as the president and chief executive officer of the conglomerate with a mandate to push the conglomerate’s profit to $1 billion by 2018.

    Nnorom took over on September 1, 2014. He succeeded Mr. Obinna Ufudo, who had led the conglomerate since 2011.

    Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Tony Elumelu, said the change was meant to further consolidate the growth of the company noting that the outgoing chief executive had laid a good foundation by delivering on the corporate objectives under the phase one of the corporate transformation.

    “In his three years as CEO of the Transcorp Group, Obinna Ufudo laid a strong foundation of good governance, achieved significant financial returns for the company and played a key role in transforming an ailing enterprise, into an emerging investment powerhouse, with a market capitalisation of over US$1.2bn.  He will be handing over a transformed business to Emmanuel Nnorom. With the implementation of Phase 2 of our strategic intent, we expect accelerated growth in all spheres of our business, with a clear objective of $1 billion in profits by 2018,” Elumelu stated.

  • Fed Govt mulls more investment in Transcorp

    Fed Govt mulls more investment in Transcorp

    Despite selling off some public assets, the Federal Government is considering additional investment in Transcorp Hilton Hotel Plc.

    The Director-General, Bureau for Public Enterprises (BPE), Benjamin Diki made this known at the public presentation of the Transcorp Hilton Hotel’s Initial Public Offer (IPO) in Abuja.

    He said government is considering making further investments in this company because Transcorp has been paying dividend for the past five years consistently and the federal government, being a shareholder has been enjoying this dividend, and that is why the federal government can recommend to Nigerians to buy this stock.

    Government’s interest in boosting its investment in Transcorp Hilton he said “is to tell you the level of profitability of this company and we recommend Transcorp to every Nigerian, even if it is 10 shares buy it, we will see what will happen in the future, we are supporting a good deal for Nigerians.”

    The BPE boss noted that “government’s 49 per cent share holding is now being diluted because government has not yet taken up its rights issue, and government has enjoyed high dividend from this stock.”

    He said the federal government has not brought other shares to the Nigerian public “because we are not confident of their fundamentals, they have not been making profit, they have not been paying dividends on a regular basis. We don’t want to come and sell shares to Nigerians, then they will wait one, three, or five years without dividend.”

    Speaking to journalists at the event, the Managing Director, Transcorp Hilton Plc, Valentine Ozigbo, said Transcorp Hilton is Nigeria’s best example of Public Private Partnership (PPP) because Transcorp is a very serious investor.

    Ozigbo said over the next five years, the company will take a phased approach in developing high-end hotels in Ikoyi, Port Harcourt, Ikeja and Warri, as well as a Convention Centre and Apartment complex in Abuja, in addition to paying even higher dividends than it is currently doing.

    He said the company is raising up to N8 billion through the IPO offering of 800million ordinary shares of 50 kobo each at N10 per share to capitalise the development of new projects.

    He said the company will utilise the proceeds from the IPO to develop two high end hotels in Lagos and Port Harcourt and major commercial centres, in order to capitalise on the increasing demand for world class amenities, while Hilton Worldwide will serve as the Operator/Manager of all the proposed new developments which will become part of the international Hilton Hotels chain across Nigeria.

    Ozigbo explained that the Transcorp Hilton Ikoyi Hotel will be an upscale hotel on a 5,868 square metre site at 39, Glover Road, Ikoyi having 300 rooms and suites, with conference and leisure facilities, gym and spa and a swimming pool.

    The project is expected to be supported by a growing population of young and wealthy Nigerians and business travellers, and it will be jointly owned by Transcorp Hotels and Heirs Holdings.

    The estimated cost of the project is put at $140 million (N22.68 billion), with the cost of land going for $15 million or N2.43 billion. Construction cost is said to cost $125 million, or N20.25 billion, and the projected commencement date is the fourth quarter of 2014, with three years construction period if the Lagos State government issues the permit on time.

    Transcorp Hilton Port Harcourt on the other hand, will be a 250 room hotel facility with conference and leisure facilities located in the Ero Road, Port Harcourt, GRA.

    The project will be built on 10,141 square metres of land at an estimated project cost of $105 million, or N17.01 billion. The cost of land is put at $5.86 million, or N950 million, with construction cost put at $100 million, or N16.20 billion. The projected commencement date is the fourth quarter of 2014, with three years construction period.

    The company has also commenced the renovation of the Transcorp Hilton Abuja. The renovation involves the modernization of core facilities of the hotel, for which Transcorp  plans to spend approximately $57.5 million, or N9.2 billion over the next three years.

    The funding for this renovation will be sourced from the company’s cash flows from operations.

  • Transcorp Ughelli to create 15,000 jobs

    The  target of 1,000Megawatts (Mw) generation by the first quarter of next year by the  Transport Ugehlli Power Limited (TUPL) will culminate in the creation of 15,000 job opportunities, it was learnt yesterday.

    Its Communications Manager, Marketing & Corporate Communications, Bolanle Omisore, who spoke in Abuja, said as private owner of the power generation plant, there is a potential of increasing the workforce by 40 per cent.

    Omisore said: “At Ughelli, we are not only excited at the potential of increasing our workforce by over 35 – 40 per cent  (140 – 200 direct jobs),  we are more excited at the significant multiplier effect in the form of contract staff, local supply chain employees, trainers, government agencies, logistics , periodic maintemance and others.

    “These we believe will create 15,000 plus inter related employment opportunities. “We expect other industry leaders to follow suite hence numbers to even be higher.”

    Omisore said  TUPL had upon the take over of the entity, injected a team of highly technical team to run the plant.

    TUPL, said Omisore, had brought in four expatriate technical advisors and some GE trained e ngineers have contributed largely to the technical capability of the company.

    Omisore said: “The machines are now running per Original Equipment Manufacturers’(OEMs’) operational procedures. Tthis was not the case before hand over. “Regular maintenance and the appreciation of the need to sustain plant reliability has been a welcome culture among the plant team.

    “Also, maintenance tasks that used to be outsourced in the past are now being carried out by the plant maintenance team.  Overall, the culture transformation is best in class.”

    Asked whether the firm has trained its workforce upon assumption of operation of the plant, Omisore affirmed that thrainings are on-going.

    The firm has also placed the technical staff  on refresher courses for specified OEM- sponsored trainings and computer appreciation training for all staff are currently in the process.

    Omisore said: “We are also reviewing training gaps among the staff through the performance review programme for future training packages.

    “We also have our technical expatriates providing both on the job trainings and formal trainings.”

  • Transcorp Ughelli eyes 1,000Mw

    Transcorp Ughelli eyes 1,000Mw

    Transcorp Ughelli Power Limited (TUPL), a subsidiary of Heirs Holdings, will  generate 1,000Megawatts (Mw) of electricity by first quarter of next year, its chairman, Mr. Tony Elumelu  has said.

    He said the firm has raised the capacity of the power plant from 150Mw to 450Mw, adding that by next month, the firm would have recorded 700Mw.

    He said: “Our experience so far at Ughelli power plant is a testimony to the size of the opportunity. Our amazing team has taken that plant from 150Mw capacity when we took over in November 2013, to 450Mw today.  We expect it to increase 700Mw by October and to achieve 1000Mw by the second quarter of 2015.”

    Elumelu said the firm would be generating  20 per cent of the country’s total power by next year upon the achievement of 1,000Mw.

    He also said  the firm is developing a greenfield project that will expand the plant’s capacity by additional 1,000Mw in within the next three to five years .

    According to him, the firm has signed a Memorandum of Understanding (MoU) with General Electric (GE) and Symbion Power to facilitate the project.

  • Transcorp Hotels plans N8b IPO, eyes listing

    Transcorp Hotels Plc, the owners of the prestigious Transcorp Hiltons Hotel, Abuja, plans to float an initial public offering of N8 billion and subsequently list its shares as a separate entity on the Nigerian Stock Exchange (NSE), according to sources in the know of the plan.

    Transcorp Hotels Plc is a subsidiary of Transnational Corporation of Nigeria (Transcorp) Plc, a quoted conglomerate with interests in agriculture, hotel and tourism, oil and gas and power. Transcorp’s share price rose by 5.41 per cent on Monday at the NSE to close at N6.43 per share.

    According to the plan, Transcorp Hotels would issue 800 million ordinary shares of 50 kobo each at a price of N10 per share, pricing its IPO higher than the market value of its parent company.

    Transcorp holds 88 per cent majority equity stake in Transcorp Hotels through Capital Leisure and Hospitality Limited. The remaining 12 per cent is owned by the Federal Government of Nigeria.

    The net proceeds of the IPO, according to sources, would be used to finance the expansion plan of the hotel and tourism company as well as support its balance sheet.

    Transcorp had recently signed a new deal with Hilton Worldwide to build a new premier hotel in the up-market suburb of Ikoyi, Lagos.

    The proposed Transcorp Hilton Lagos, a full service, 350-room hotel on Glover Road, Ikoyi, will be the Hilton Group’s second hotel in Nigeria by Transcorp, following the award-winning Transcorp Hilton Hotel Abuja, which is one of the leaders in Hilton’s global network. The new hotel will be jointly owned by Transnational Hotels and Tourism Services Ltd, a hospitality subsidiary of Transcorp and Tony Elumelu’s Heirs Holdings. Heirs Holdings holds the majority stake in Transcorp.

    Speaking at the official signing of the management contract at Heirs Holdings’ office in Lagos, Chairman, Heirs Holdings, Mr. Tony Elumelu said the agreement marked another milestone in the long-standing partnership with Hilton Worldwide.

    According to him, the Ikoyi development, along with the extensive refurbishment and upgrade of the group’s existing hotels in Calabar and Abuja, demonstrates Heirs Holdings’ commitment to driving growth in real estate and hospitality, a strategic sector for Nigeria’s economic development.

    “The new Transcorp Hilton Lagos will not only present an additional world-class venue for the increasing numbers of investors, businessmen and tourists to Nigeria, but is creating much-needed jobs for our citizens, enabling their social and economic development,” Elumelu said.

    Transcorp plans to draw on the growing profiles of its subsidiaries to consolidate its improving fundamentals. Interim report and accounts of Transcorp for the six-month period ended June 30, 2014 had shown that turnover rose by 177 per cent while group operating profit and pre-tax profit jumped by 145 per cent and 122 per cent respectively.

    The report showed that turnover doubled to N21.2 billion in June 2014 as against N7.67 billion recorded in comparable period of 2013. Gross profit rose from N5.99 billion in first half 2013 to N14.96 billion in first half 2014. Operating profit for half year 2014 was N9.75 billion as against N3.99 billion in comparable period of 2013. Group profit before tax doubled to N8.02 billion in 2014 compared with N3.61 billion in corresponding period of 2013. After taxes, net profit rose from N2.48 billion in 2013 to N6.89 billion in 2014.

    The improved bottom-line underlined stronger returns with earnings per share rising from 5.53 kobo to 11.30 kobo. Transcorp paid a dividend per share of 5.0 kobo for the 2013 business year, its first dividend since inception.

    Elumelu had noted that the principal cause of asset growth for the group and company was its acquisition of the Ugheli Power Plant, Nigeria’s largest generating facility and where its influence has already seen a doubling of capacity.

    “I believe that we will build on the solid foundation laid over the last couple of years to begin an era of steady and increasing dividend payment to our shareholders,” Elumelu said.

    He noted that following Transcorp’s takeover of the Ugheli power plant, power output has more than doubled at the plant from 160 megawatts on handover date to 360 megawatts currently pointing out that the goal of the new board is to increase output at the plant to 700 megawatts by December 2014 by embarking on an extensive rehabilitation programme.

  • Transcorp’s profit hits N9.75b

    Transnational Corporation of Nigeria Plc (Transcorp) continued on a strong growth trajectory in 2014 as it announced Group Profit Before Tax (PBT) of N8.02bn for six months ended June 30, repesenting a 122 per cent increase against the corresponding period in 2013.

    Highlights of the half year 2014 results, showed that Gross revenue for the Group stood at N21.21billion, representing 177 per cent growth from half year 2013 results of N7.67billion.

    Also, Group operating profit for half year 2014 was N9.75billion, indicating an increase of 145 per cent against the corresponding period in 2013.

    The Group PBT for the period of N8.02billion represents a leap of 122 per cent on PBT of N3.61billion achieved for half year of 2013. Total assets for the Group grew by 6 peer cent from N149.64billion for full year 2013 to N158.18billion for the six months ended 30 June 2014.

    Commenting on the results, the President and Chief Executive Officer, Transcorp,  Obinna Ufudo said: “Our half year results for 2014 consolidates the significant growth achieved in first quarter 2014 and firmly sets us on course for the attainment of FY 2014 financial targets. We are very pleased with the continued growth in capacity and output at our Ughelli Power plant. The plant’s available capacity and output peaked at 453 MW during the period, up from the 160MW when we took over on November 1, 2013.

  • Adekunle Oyinloye celebrates 50th birthday in style

    Adekunle Oyinloye celebrates 50th birthday in style

    The Congress hall of the Transcorp Hilton Abuja was filled to capacity on Thursday, 5th June 2014. The event was the 50th birthday of the Managing Director of the Infrastructure Bank Plc, Chief Adekunle AbdulRazaq Oyinloye.

    The audience were entertained with scintillating jokes from comedian Agoda (I Go Die).

    The list of dignitaries that graced the occasion included the honourable minister of Special Duties, Alhaji Tanimu, Special Assistant to the President on Public Affairs, Dr Doyin Okupe, the director general of Securities and Exchange Commission (SEC), representatives from NEXIM, NDIC, as well as other top management staff of Infrastructure Bank Plc.