As part of Transnational Corporation Plc’s proposed share reconstruction, the total number of issued ordinary shares of the company will be reduced by consolidating the issued shares at a ratio of 1 for 4.
This was contained in the company’s explanatory statement to the Nigerian Exchange Limited seen by Nairametrics.
According to the statement, the reconstruction will result in the cancellation of three out of every four shares held by Transcorp’s shareholders and a reduction of the issued share capital to N5,080,998,787.00, comprising 10,161,997,574 ordinary shares of N0.50 each.
The company noted that it 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.
It noted that 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.
The company noted that prior to the reconstruction becoming effective, Transcorp shareholders holding shares that will result in fractional shares post-reconstruction will have them rounded up to the nearest whole number.
As of the effective date of the reconstruction, the company said shareholders who have dematerialized their holdings with the CSCS will automatically have their shares adjusted directly in their respective CSCS accounts.
It stated that shareholders who have their shares placed under a lien with the CSCS will also automatically have their shares adjusted directly into their respective CSCS account.
According to the company, in accordance with the SEC directive on dematerialization of share certificates, shareholders who do not have valid CSCS accounts will have their shares credited at the CSCS using a non-tradeable Clearing House Number (CHN), against the previously used Registrar Identification Number.