NSE Approves Transcorp’s Merger Proposal

0
474

The Nigeria Stock Ex
change (NSE) has approved the proposal made by Transnational Corporation of Nigeria Plc (Transcorp) to merge her power business subsidiaries.
The NSE approval in principle was contained in a letter made available to newsmen last week.
The approval was the fall out of a subsequent letter written by Transcorp to notify NSE of its plan to merge its power business  subsidiaries, addressed to the Exchange’s Chief Executive Officer, Mr. Oscar Onyema.
Transcorp’s letter which was signed by the company secretary Transcorp Ughelli Power Limited, Mr. Chinedu Eze, notified that the company wants to merge “Transcorp Ughelli Power Limited and Ughelli Power Plc (owners and operators of Ughelli Power Plant).
The company said the proposed merger was expected to bring overall management and operational efficiency to the power business of Transcorp.
Transcorp is a leading diversified conglomerate that focuses on acquiring and managing strategic businesses that create long term shareholder returns and socio-economic impact.
Transcorp Investment focuses on four sectors: power, oil and gas, hospitality, and Agriculture.
Meanwhile, more companies have commended the process of merging to enable them meet up the high capital base stipulated by the market regulators, Securities and Exchange Commission (SEC) before the end of the year.
Some companies have also complained about the effect of the foreign exchange rate on the recapitalization move.