Sept. 20 (Bloomberg) -- Transnational Corp. of Nigeria Plc, which has investments in hotels, agriculture and oil, gained for the eighth day and reached the highest in two months after it was shortlisted to buy state-owned power utilities, signaling further diversification in its group of companies.
The stock gained 5 percent to 1.06 naira at the close in Lagos, Nigeria’s commercial capital. That’s the highest since July 20.
Transnational, Julius Berger Nigeria Plc, and six others are in the final list of companies to buy five power plants, Abuja-based Bureau of Public Enterprises, Nigeria’s privatization agency, said yesterday. Nineteen others are seeking to acquire 10 distribution companies, the agency said.
The Lagos-based company plans to build eight hotels that trade under the Hilton brand in Africa’s most populous country to take advantage of a surge in business visitors, Chief Executive Officer Obinna Ufudo said in an interview on May 25. Transnational is also investing in the processing of fruits, rice and cassava, he said.
“With the extent of diversification the company has achieved, I believe they will do well,” Samuel Onukwue, chief executive officer of Mega Equities Ltd., a brokerage, said by phone today from Lagos. “Investors see value in it at the price the stock is trading now.”
Profit for the second quarter through June rose to 939.9 million naira from 547.2 million naira, the company said on July 17.
The stock has risen 86 percent this year, compared with a 25 percent increase in the Nigerian Stock Exchange All-Share Index.
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