Transnational Corporation Plc (NGX: TRANSCORP) is embarking on a share reconstruction to reduce the number of its issued ordinary shares.
The proposed Reconstruction is being undertaken in line with the Company’s corporate strategy and growth plan and is aimed at maximizing shareholder value in the near term.
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Transcorp disclosed this in an explanatory note released by the company, and seen by Investogist.
The Company’s share capital is ₦20,323,995,146.50 (Twenty Billion, Three Hundred and Twenty-Three Million, Nine Hundred and Ninety-Five Thousand, One Hundred and Forty-Six Naira, Fifty Kobo only) comprising 40,647,990,293 (Forty Billion, Six Hundred and Forty-Seven Million, Nine Hundred and Ninety Thousand, Two Hundred and Ninety-Three) ordinary shares of ₦0.50 (Fifty Kobo) each.
As part of the Reconstruction, the total number of issued ordinary shares of the Company would be reduced by consolidating the issued shares at a ratio of 1 for 4. Specifically, three (3) out of every four (4) ordinary shares held by Transcorp’s shareholders will be cancelled.
The cancellation and extinguishment of the 30,485,992,719 (Thirty Billion, Four Hundred and Eighty-Five Million, Nine Hundred and Ninety-Two Thousand, Seven Hundred and Nineteen) ordinary issued shares of ₦0.50 (Fifty Kobo) each in the Company will result in the reduction of the issued share capital to ₦5,080,998,787.00 (Five Billion, Eighty Million, Nine Hundred and Ninety-Eight Thousand, Seven Hundred and Eighty-Seven Naira) (comprising 10,161,997,574 (Ten Billion, One Hundred and Sixty-One Million, Nine Hundred and Ninety Seven Thousand, Five Hundred and Seventy-Four) ordinary shares of ₦0.50 (Fifty Kobo) each).
The Company has received the “No Objection” of the Financial Reporting Council of Nigeria (“FRCN”) and the Securities and Exchange Commission (“SEC”) in respect of the Reconstruction.
Upon receipt of the approval of Transcorp’s shareholders, an application will be made to the Federal High Court for confirmation of the Reconstruction, subsequent to which the remainder shares of the Company will be re-registered with the SEC.
It is important to note that following the Reconstruction exercise, shareholders of Transcorp will hold the same proportion in the Company’s ordinary share capital relative to each other as they did immediately before the exercise, thus ensuring that there is no dilution of shareholding of the shareholders.
Prior to the Reconstruction becoming effective, those Transcorp shareholders holding shares that will result in fractional shares post-Reconstruction will have their shares rounded up to the nearest whole number.
The 18th Annual General Meeting (“AGM”) of Transnational Corporation Plc is scheduled to hold on Monday, May 27, 2024, at the Lagos/Osun Hall, Transcorp Hilton Abuja, 1, Aguiyi Ironsi Street, Maitama, Abuja, F.C.T, at 10.00 a.m.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
