Transcorp Plc has announced the successful completion of its share reconstruction, a strategic action aimed at maximising long-term shareholders value.
The share reconstruction involved a consolidation of the total number of issued shares at a ratio of 1 to 4, reducing the total issued and fully paid shares of Transcorp Group from 40.6 billion shares to 10.2 billion shares.
Whilst the number of shares reduced pro rata, the total value of shareholders’ investments remains unchanged with no dilutive impact to shareholders.
Commenting on the share reconstruction, President/GCEO of Transcorp Plc Owen Omogiafo said,
“This share reconstruction is in line with the company’s corporate strategy and growth plan and is aimed at maximizing shareholder value. The reconstruction will bring the company’s capital structure to a manageable position
“Transcorp Plc remains committed to driving growth and creating value for its shareholders through strategic actions that align with its business objectives”.
As part of Transnational Corporation Plc’s proposed share reconstruction, the company had recently said that 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.
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.