Feb. 26 (Bloomberg) -- Transnational Corp. of Nigeria Plc, which invests in hotels, agriculture and energy, rose the most in more than two weeks after it got regulatory approval for a planned rights offer.
The stock jumped 9.7 percent to 1.81 naira as of the 2:30 p.m. close in Lagos, Nigeria’s commercial capital, the biggest advance since Feb. 11, according to data compiled by Bloomberg. About 68 million shares traded, or 170 percent of the three-month daily average volume.
Transcorp obtained approval to sell 13 billion shares, the company said today in a statement on the website of the Nigerian Stock Exchange. Shareholders will vote on the plan at a meeting on March 28, it said.
“Investors are buying the company’s shares to benefit from the rights issue at a lower price,” David Adonri, chief executive officer of Lambeth Trust and Investment Co., said by phone from Lagos.
Transcorp said on Jan. 30 it signed a deal with General Electric Co. for equity investment and technical support. GE will invest $1 billion in Nigeria over the next five years by building a manufacturing plant to support power generation and oil production, Chairman Jeffrey Immelt said on Jan. 31.
The stock has advanced 72 percent this year, compared with a 20 percent rise in the Nigerian Stock Exchange All-Share Index.
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