Transnational Corporation Plc has announced plans to reduce its number of shares through a share capital reconstruction, aiming to enhance shareholder value and improve share pricing. The move has received initial regulatory approval from the Financial Reporting Council of Nigeria and the Securities and Exchange Commission.
The proposed reconstruction involves consolidating issued shares at a ratio of 1 for 4, resulting in the cancellation of three out of every four ordinary shares held by shareholders. This would reduce the total number of issued ordinary shares from 40,647,990,293 to 5.08 billion.
The company’s board of directors has appointed United Capital Plc and Vetiva Advisory Services Limited as financial advisers for the deal. Transcorp believes that the reconstruction will position the company to accommodate various funding sources in the near future, ultimately benefiting shareholders.
Source: PUNCH