Transcorp acquired the Ughelli power plant, one of the generating plants unbundled from the Power Holding Company of Nigeria (PHCN). And the federal government has handed over the plant to Transcorp along with others, similarly sold to private investors.
THISDAY checks revealed the successful acquisition of the power plant has led to a renewed demand for the shares by investors, who are reacting to the positive long-term impact the new investment would have on Transcorp Plc.
Consequently, the shares of Transcorp, have appreciated by 94 per cent in the last two weeks. The stock rose from N1.87 on November 1 to N3.63 last Friday, translating into a capital gain of 94 per cent.
Transcorp is a conglomerate with a diversified shareholder base of over 300,000 investors, the most prominent of which is Heirs Holdings Limited, a pan-African proprietary investment company. Transcorp portfolio comprises strategic investments in the hospitality, agribusiness and energy sectors. Its line of business include: Transcorp Hilton Hotel, Abuja; Transcorp Hotels, Calabar; Teragro Commodities Limited, operator of TeragroBenfruit plant and now Transcorp Ughelli Power Limited.
Commenting on the power plant, Chairman of Transcorp, Mr. Tony Elumelu, said: “It is a very symbolic platform that we have just acquired. We are strong in the business of turnaround. We know how to turn around businesses. The new plant that we have just acquired is one that is going to provide a platform for us to demonstrate in a bigger landscape what we are used to doing on turnaround of businesses.”
According to him, Transcorp has a track record for turnaround businesses, stating: “Ughelli Power plant today is generating 330mw. Installed capacity is close to 1,000mw. We want to quickly raise the output of this plant to 1,500mw.”