Transcorp Nigeria Gains Most in Almost 6 Years on Power Plant
Transnational Corp. of Nigeria Plc, which invests in hotels, agriculture and energy, gained the most in almost six years after a newspaper reported the government will hand over a power plant the company won in a bid.
The stock gained 6.7 percent to 1.11 naira by the 2:30 p.m. close in Lagos, Nigeria’s commercial capital. That’s the biggest increase since April 11, 2007, according to data compiled by Bloomberg. More than 12 million shares have been traded, David Adonri, chief executive officer of Lambeth Trust and Investment Co., said by phone from Lagos.
Nigeria will hand over power plants to winners of bids within two weeks, BusinessDay reported, citing Pius Anyim, secretary to the federal government. Transcorp won a bid for the Ughelli Power Station with a $300 million offer, the National Council of Privatization said on Sept. 25.
“Transcorp is consolidating its entry into the power sector,” Adonri said. “There has been a sustained demand for Transcorp based on its fundamentals and entry into new businesses.”
Investments made and planned in agricultural processing are also pushing demand for the stock, said Raheem Mohammed, chief executive officer of Kundila Finance Ltd. “By the time the company succeeds in these businesses, it will become a sought- after stock,” he said.
Transcorp is planning to invest in processing plants for fruit juice, rice and cassava, Chief Executive Officer Obinna Ufudo said in May. Transcorp opened a fruit-processing plant in Nigeria’s Benue state in March, he said. Ufudo said he was in a meeting in response to a mobile-phone text message today.
To contact the reporter on this story: Vincent Nwanma in Lagos at firstname.lastname@example.org
To contact the editor responsible for this story: Dulue Mbachu at email@example.com