Transcorp to List Power Subsidiary in 5-years, Acquire More Assets

Transnational Corporation Plc (Transcorp), Nigeria’s largest listed conglomerate, will list its power subsidiary on the Nigerian Exchange Group (NGX), in 5-years’ time, and will seek to acquire more assets in the meantime.

“We hear that rumour about listing from time to time. We are long term players. We want to grow and bring more significant value,” the Group Chairman of Transcorp, Tony O. Elumelu, CFR, said, in an interview on Arise TV.

“We believe there is more to be done in the power sector, in gas supply, the transmission lines being fixed and when this is done that will be the right time to list, which is in about 5 years’ time.”

Transcorp held its 17th Annual General Meeting (AGM), on Wednesday (April 26^th) and declared a dividend of 5k per share, a 150% increase over the previous year’s dividend.

Trancorp has increased generation capacity at its power plants, helping to improve electricity access in Nigeria.

The Company’s power business increased its available and generated capacity from 598MW and 373MW, to 720MW and 426MW, respectively, following significant investment and rehabilitation of its generating assets.

“The only reason we cannot do up to 750mw/day is due to gas constraints,” Elumelu said.

“We are integrating our assets and hopefully from our oil assets we will be able to pipe gas to Transcorp Power and increase output, because Nigerians need electricity.”

Elumelu said Transcorp will purchase more assets in the power and oil and gas sectors.

“We have a track record. My track record in business as Tony Elumelu in Nigeria, is my business turnaround record and also creating opportunities for shareholders. When we took over Transcorp for instance, it was the only Transcorp Hotel in Abuja that existed. Today we have power plants with a capacity of about 2,000mw that Transcorp has invested in,” Elumelu added.

“So we know how to grow businesses, how to turn around businesses and how to smell opportunities when they arise.”

Transcorp continued to deliver on its year-on-year growth strategy, with a 7% increase in the Group’s total assets, growing to N442.7 billion in 2022.

Transcorp, which has nearly 300,000 shareholders, made history as it held its AGM virtually, making it the first public company in Nigeria to do so, following the signing into law of the Business Facilitation Act (BFA), by the President of Nigeria.

Resolutions passed at the AGM include reappointment of all board members as well as auditors and resolutions that will enable the company to perform better.

“The resolution showed confidence in management and gives us the ability to take advantage of opportunities in the marketplace,” Elumelu said.