Fakoyejo OlalekanShareholders of Transcorp Hotels have given the hospitality firm’s board of directors approval to sell the 100 per cent stake in Transcorp Hotels Calabar amid N269.26 million loss.
The approval was given on Monday, 3 April 2023, after the Annual General Meeting (AGM) of Transcorp Hotels Plc, a statement released on Wednesday, 5 April, disclosed.
Prime Business Africa obtained the statement from the capital market authority, Nigerian Exchange Limited (NGX), where Transcorp Hotels is publicly listed.
In the statement, Transcorp Hotels said the following resolutions were made: “That the Company be and is hereby authorized to dispose of its 100% equity interests in Transcorp Hotels Calabar Limited in accordance with relevant laws, statutes, and regulations.
“That the Company be and is hereby authorised to invest in, acquire, or divest from any business and/or carry out as the Directors may deem appropriate and in accordance with any relevant laws, any actions, including but not limited to restructuring, reorganization, reconstruction and such other business arrangement exercise or actions.
“That subject to regulatory approval (where necessary), the Directors, be and are hereby authorised to take all steps and do all acts that they deem necessary,” in furtherance of the sale of Transcorp Hotels Calabar and acquisition or restructuring of Transcorp Hotels, ”including but not limited to executing and filing all such forms, papers or documents, as may be required with the appropriate authorities; appointing professional advisers and parties that they deem necessary, upon such terms and conditions that the Directors may deem appropriate.”
Prime Business Africa gathered that the sale of Transcorp Hotels Calabar will cost more than a billion naira, considering Transcorp Hotels Plc’s worth of investment in the former is estimated at N3.50 billion at the end of December last year.
After the sale, Transcorp Hotels Plc will be left with the following subsidiaries; Transcorp Hotels Port Harcourt Limited Transcorp Hotels Ikoyi Limited and Aura by Transcorp Hotels Limited.
Transcorp Hotels Plc is selling the Calabar subsidiary amid N269.26 million loss recorded in 2022. This is a significant increase compared to the N3.49 million loss suffered the year before.
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