The Board of Trans-Nationwide Express (Tranex) Plc will, at the company’s 31st Annual General Meeting (AGM), request shareholders’ approval to increase the company’s share capital from N249.075 million to N498.15 million. This represents a 100% increase in capital.
This was contained in the company’s notice of the 31st Annual General Meeting seen by Nairametrics.
This increase will be achieved by creating an additional 498,150,077 ordinary shares of N0.50 each, which will rank pari-passu in all respects with the existing ordinary shares.
The company will also request endorsement that, following the approval of the increase in the company’s share capital and subject to obtaining all required statutory approvals, the directors be empowered to issue the newly created 498.150 million ordinary shares through a rights issue to existing shareholders.
The statement read
That the share capital of the company is and is hereby increased from N249,075,038.50 to N498,150,077.00 by the creation of an additional 498,150,077 ordinary shares of N0.50 each ranking pari-passu in all respects with the existing ordinary shares of the Company.
That following the approval of the increase in the Company’s share capital and subject to the Company obtaining all required statutory approvals, the Directors be and are hereby empowered to issue the newly created ordinary shares of 498,150,077 (four hundred and ninety-eight million, one hundred and fifty thousand, seventy-seven) through a Rights issue to existing shareholders.”
Other resolutions to be passed:
At the upcoming AGM, the shareholders will also have the opportunity to consider and pass the following special resolutions:
- That the Directors be and are hereby authorized to negotiate, execute, and conclude any transaction documents they deem necessary in connection with the proposed issuance of shares to existing shareholders as well as to do all such things as may be reasonably necessary for consummating the transactions contemplated in the Transaction Agreements.
- Following the execution of the Transaction Agreements, the Board of Directors of the Company be and are hereby authorized to allot/issue the relevant shares to existing shareholders and take all necessary steps in connection with this, subject to the approval of the regulatory authorities, among other things.
What you should know
- Tranex is a logistics solutions provider. Its full-year 2023 financial results showed a decline in performance indicators. The company reported a 25% drop in revenue, from N698.625 million in 2022 to N527.257 million in 2023.
- Direct cost of operations decreased by 19%, from N508.345 million in 2022 to N410.604 million in 2023.
- Profit before tax dropped by 13%, from N43.332 million in 2022 to N37.669 million in 2023, while profit after tax decreased by 36%, from N25.216 million in 2022 to N16.026 million in 2023.
- Tranex closed its trading day on Wednesday, May 29, 2024, at N1.25 per share on the Nigerian Stock Exchange (NGX).
- Trans-Nationwide Express began the year with a share price of N1.15 and has since gained 8.7% in price valuation.