Transnational Corporation PLC Plan Ordinary Shares Reconstruction

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Transnational Corporation PLC, a leading entity in the corporate landscape, has unveiled a comprehensive plan aimed at reconstructing its ordinary shares, a move expected to reshape its capital structure and optimize shareholder value.

The company’s current share capital stands at a substantial ₦20,323,995,146.50 (Twenty Billion, Three Hundred and Twenty-Three Million, Nine Hundred and Ninety-Five Thousand, One Hundred and Forty-Six Naira, Fifty Kobo only), divided into 40,647,990,293 (Forty Billion, Six Hundred and Forty-Seven Million, Nine Hundred and Ninety Thousand, Two Hundred and Ninety-Three) ordinary shares, each valued at ₦0.50 (Fifty Kobo).

Under the proposed reconstruction, the company intends to consolidate its issued ordinary shares, a strategic move to streamline its capital base and enhance operational efficiency. This consolidation will entail a reduction in the total number of issued ordinary shares at a ratio of 1 for 4. Essentially, three out of every four ordinary shares held by Transcorp’s shareholders will be canceled, resulting in the annulment of 30,485,992,719 (Thirty Billion, Four Hundred and Eighty-Five Million, Nine Hundred and Ninety-Two Thousand, Seven Hundred and Nineteen) ordinary issued shares of ₦0.50 (Fifty Kobo) each. Consequently, the issued share capital will be reduced to ₦5,080,998,787.00 (Five Billion, Eighty Million, Nine Hundred and Ninety-Eight Thousand, Seven Hundred and Eighty-Seven Naira), comprising 10,161,997,574 (Ten Billion, One Hundred and Sixty-One Million, Nine Hundred and Ninety-Seven Thousand, Five Hundred and Seventy-Four) ordinary shares of ₦0.50 (Fifty Kobo) each.

The company has already secured the necessary regulatory approvals from the Financial Reporting Council of Nigeria (FRCN) and the Securities and Exchange Commission (SEC). Pending the approval of Transcorp’s shareholders, the company will proceed to seek confirmation from the Federal High Court for the reconstruction, following which the remaining shares will be re-registered with the SEC.

Post-reconstruction, the share capital of Transnational Corporation PLC will undergo a significant transformation, with a reduced number of issued shares and a special reconstruction reserve established to safeguard the balance resulting from the cancellation of shares. Importantly, shareholders will maintain their proportionate ownership in the company, ensuring no dilution of shareholding.

The reconstruction process will also address fractional shares, with shareholders holding such shares seeing them rounded up to the nearest whole number. Additionally, provisions have been made for both dematerialized and non-dematerialized shareholdings, ensuring a smooth transition for all shareholders.

Furthermore, shareholders are reminded to update their particulars with the company’s Registrars, Africa Prudential Plc, within the specified timeframe to avoid any disruptions in the issuance of new share certificates.

As Transnational Corporation PLC embarks on this reconstruction journey, it aims to strengthen its financial position, enhance shareholder value, and position itself for sustainable growth in the ever-evolving business landscape.

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