Daily Trust investigation shows that the Transcorp shares surged by N4.05 kobo translating to 222.53 per cent between November 1, 2013 when the company acquired Ughelli Power Plc and last Friday.
The shares stood at N1.82 kobo on acquisition of Ughelli Power Plc to close last Friday at N5.87 kobo per share.
Also, the shares of the company to date rose by N4.82 kobo or 459 per cent, from N1.05 kobo it opened the year to close at N5.87 kobo last Friday.
Growth recorded in Transcorp shares has been attributed to the acquisition of power plant.
Chairman of the company, Mr. Tony Elumelu, in a notice to the stockbrokers said the company recently raised additional capital, through a rights issue, in order to accelerate its growth strategy.
He said the acquisition of a 1000MW capacity Ughelli Power Plc through their subsidiary, Transcorp Ughelli Power Ltd (TUPL), is already seeing the first fruits of the plans to deliver value.
“TUPL paid $300m for 100 per cent ownership of the plant. On November 1, 2013, TUPL successfully took over ownership and physical possession of the plant. We will significantly raise output from the current 160MW to at least 1,500MW, over the next 3 to 5 years,” the chairman said.
He noted that, “with a dedicated pipeline supplying gas to the plant and a long term off-take agreement, with the bulk electricity trader, the return profile of this investment is compelling.”
The potential impact of the investment on Transcorp’s fortunes is significant.”
Equally important is the impact of secure and sustainable power generation on the living standards of all Nigerians. We are proud of the leading role that your company is able to play in the transformation of a sector critical to enabling Nigeria achieve her true potential,” Elumelu said.