Transcorp Corporation plc has announced that its shareholder, HH Capital Limited, has received SEC approval to tender up to 2,032,399 shares of Transcorp from existing shareholders, which accounts for 0.02% of the total shares.
This announcement comes after HH Capital successfully acquired 1,493,477,786 ordinary shares of Transcorp at an average price of N3.12 per share.
As a result, HH Capital’s total direct and indirect shareholdings have increased to a point that requires them to make a mandatory tender offer under the Investment and Securities Act of 2007 and SEC regulations.
A mandatory tender offer which requires an acquirer to publicly offer to buy shares from other shareholders when their ownership reaches a certain threshold, ensures fair exit opportunities for minority investors.
In a recent update, Transcorp confirmed through its company secretary, Atinuke Kolade, that the SEC has approved HH Capital’s offer to acquire approximately 0.02% (2,032,399 shares) of its fully paid ordinary shares at a 0.25% premium.
This means that shareholders who decide to sell their shares, or “tender” them, will receive a slightly higher price than the trading value at the time of the offer.
The buying price will be based on the opening price of Transcorp’s ordinary shares on the day the offer is made for each unit tendered.
Transcorp Plc recently released its unaudited financial results for the third quarter of 2024, offering an overview of the company’s performance during this period.
In terms of revenue, Transcorp recorded a 166% increase in Q3 2024, reaching N122.327 billion, up from N45.903 billion in Q3 2023.
For the nine-month period, total revenue rose to N297.664 billion, reflecting a 133% year-on-year growth.
On the Nigerian stock market, Transcorp’s shares have surged over 400% year-to-date. The stock began the year at N8.66 and has since soared to N44.00.