Transcorp shares up by 9.50 per cent after two weeks of price correction

•I make N250b offer for corporation in shareholders’ interest, says Otedola
After days of downturn, shares of TransNational Corporation of Nigeria (Transcorp) closed higher at the end of yesterday’s transactions on the equities sector of the Nigeria Exchange Limited (NGX).

The stock price rose by 9.5 per cent to close at N1.96 kobo from N1.88 kobo at which it opened for transactions yesterday.

Recall that the stock led the losers’ chart at the end of last week’s transaction, shedding 30.96 per cent to close at N1.94 kobo from N2.81 kobo at which it opened for transactions last week Tuesday.

The sudden rise in share price may, however, be attributed to media reports on what motivated billionaire businessman, Femi Otedola, to acquire about six per cent shares in Transcorp and why he decided to sell shortly afterward.

“As a businessman, I believe in healthy competition and market dynamics. Two captains cannot man a ship, and I respect the majority shareholder’s decision to buy me out. This is the nature of the game.”

“But let me be clear: my offer was made with the best intentions for Transcorp Plc and its shareholders. I saw an opportunity to unlock the company’s full potential and create value for everyone involved, Otedola said in a statement said to have been released by him.

Since the beginning of the ‘power play’ last month, both men never spoke to each other directly or made any public statement, as they related via proxies throughout the transaction.

Market operators, while reacting to the news pointed out that the struggle for Transcorp is an indication that the company is now strong fundamentally with very bright growth prospects.

According to them, operators and shareholders can only work with corporate disclosures from the company irrespective of the direction the power tussle is taking.

They also believed that Otedola’s explanation about his intentions, past sour business deals with Tony and allusions to the trust deficit in the leadership of Transcorp are secondary matters.

MEANWHILE, transactions on the NGX closed higher by N14 billion yesterday, as investors continued their bargain-hunting activities in the market.

The All Share Index (ASI) gained 25.89 points, representing a growth of 0.05 per cent to close at 52,605.41 points. Also, market capitalisation gained N14 billion to close at N28.644 trillion.

The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Conoil, Ecobank Transnational Incorporated (ETI), Chemical & Allied Products (CAP), Champion Breweries and United Capital.

As measured by market breadth, market sentiment was positive as 32 stocks gained relative to 19 losers. Conoil recorded the highest price gain of 10 per cent to close at N48.40 kobo. Multiverse Mining and Exploration followed with a gain of 9.97 per cent to close at N3.75, while John Holt rose by 9.77 per cent to close at N1.91 kobo.

CWG went up by 9.66 per cent to close at N1.59, while Transcorp also appreciated by 9.50 per cent to close at N1.96 kobo.

On the other hand, Unity Bank led the losers’ chart by 9.26 per cent, to close at 49 kobo, per share. Japaul Gold and Ventures followed with a decline of 8.82 per cent to close at 31 kobo, while Cutix declined by 8.8 per cent to close at N2.28 kobo.

Nigerian Breweries depreciated by 8.29 per cent to close at N32.1, while Academy Press declined by 5.71 per cent to close at N1.65 kobo.

The total volume traded advanced by 25.34 per cent to 640.969 million units, valued at N7.133 billion, and exchanged in 5,884 deals.

Transactions in the shares of Access Holdings topped the activity chart with 129.729 million shares valued at N1.482 billion. United Bank for Africa (UBA) followed with 91.113 million shares worth N728.472 million, while FBN Holdings (FBNH) traded 80.973 million shares valued at N969.538 million.

Zenith Bank traded 42.751 million shares valued at N1.045 billion, while NEM Insurance sold 33.644 million shares worth N153.08 million.