A total of 1,553,851,363.00 units of Transcorp shares valued at N2.1 billion crossed on the Nigeria Exchange on Tuesday, April 11, 2023, Nairametrics can confirm.
The shares were crossed at an average price of N1.35 per share as the stock closed 2.1% up at N1.4 per share.
The share price is currently up 40% in the last year as investors continue to assign significant valuation to the stock. It is currently priced at about 7.15x its earnings per share and has a total market capitalization of N55.69 billion.
Why this matters?
The sale represents about 3.8% of Transcorp’s total shareholding of 40.5 billion units indicative of a significant transfer of shares from one seller to a buyer.
Nairametrics cannot immediately confirm who the buyer is however reliable sources confirm that the seller is Asset Management Corporation of Nigeria (AMCON).
Details from the company’s 2022 audited accounts reveal that as of 31 December 2022, only UBA Nominees Limited Trading held 5% or more of the issued and fully paid shares of 50 kobo of the Company.
The company also has about 39.65 billion out of its 40.65 billion outstanding shares on a free float. In fact, 1,695 people own about 89% of the company’s shares.
Nairametrics analysts believe this makes the company an easy target for a takeover or a challenge to its majority ownership since only one company owns more than 5%.
The conglomerate with investments in the Hospitality, Power, and Oil & Gas sectors.
Latest results
Transnational Corporation Plc (Transcorp) has released its financial results for the full year ended December 31, 2022, showing profit before tax rose by 8% to N30.3 billion compared to N27.9 billion in December 2021.
The Group’s total revenue and operating profit also experienced significant growth, rising by 21% from N111.2 billion in December 2021 to N134.7 billion in the period under review, and from N38.5 billion in December 2021 to N46.7 billion in December 2022, respectively.
The conglomerate saw a 7% increase in its Power investments, despite the challenges faced in the year from the issues with gas supply, off the diminished Oil & Gas production in the country in 2022.
The hospitality sector showed a very strong performance, achieving a record revenue of 31.4 billion and profit before tax of N4.5 billion.
These achievements have been made within a challenging operating environment characterized by foreign exchange volatility, high cost of production, and rising inflation.
