Who will finally owe transcorp ?.


Crisis is brewing over the ownership of Transnational Corporation of Nigeria (Transcorp) Plc as Heirs Holdings Limited, through HH Capital on Tuesday owned up to have acquired a strategic stake in the corporation.

Heirs Holding is owned by the immediate Group Managing Director of United Bank for Africa (UBA), Tony Elumelu.

Transcorp management had petitioned the Nigerian Stock Exchange (NSE) and the Director General Securities and Exchange Commission (SEC) over a total of 2.51 billion units of the company's shares representing 10 per cent of Transcorp's issued share capital traded in a single day on March 31, 2011, the largest volume of a company's shares traded in one day in the past one year.

The Board of Directors and management of the company expressed shock at how such a transaction was approved by the Exchange without information to and consent of shareholders and the company.

But Heirs Holdings Limited, through HH Capital, in a statement by JeNika P. Mukoro, Director, Marketing and Corporate Communications, yesterday said it has acquired a strategic stake in Transnational Corporation of Nigeria (Transcorp) Plc saying Transcorp shareholders would benefit from its track record of value-creation, particularly smaller shareholders who subscribed to the original vision of the company as a means of mass participation in Nigeria's economic success.

The company also said it would engage positively with the board and management of Transcorp, so that the transformation being envisage for the company could be implemented and conducted in a spirit of cooperation, for the greater good of all shareholders.

It said Heirs Holdings is a principal investment vehicle, with a diversified portfolio, including interests in the financial services, real estate and resources sectors. Heirs Holdings typically adopts a long-term investment approach, seeking to add value through the contribution of directorship and execution skills to its portfolio investments adding that the company has structured its investment to ensure that all shareholders will continue to participate in the listed company and benefit from the considerable upside believed to be represented in Transcorp.

"Our Chairman, Tony O. Elumelu who was a founding director and investor believes strongly in the founding vision of Transnational Corporation of Nigeria (Transcorp) Plc as a means for Nigerians to access the abundant economic opportunities present in the country, through the capital markets. Heirs Holdings will continue to identify similar opportunities across Africa, which we believe will enable us to achieve our ambition of building exceptional value for all of our stakeholders and fellow shareholders", it said .

But, Transcorp board and management have kicked against the move, saying such a transaction and request did not follow due process and the provisions of law be allowed where an individual or group of individuals are interested in a controlling stake in the company.

"In the interest of over 300,000 shareholders of Transcorp Plc, this letter has been copied to the Securities and Exchange Commission which is hereby put on notice to investigate potential or actual market abuse in this regard".


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