Transcorp Hits Longest Winning Streak in 2 Months: Lagos Mover
Transnational Corp. of Nigeria Plc, which invests in hotels, agriculture and energy, rose to the longest winning streak in two months on speculation the company will pay its first dividend, according to Lambeth Trust and Investment Co.
The stock climbed for a third day, gaining 7.8 percent to 1.39 naira by the close in Lagos, Nigeria’s commercial capital, the longest set of gains since Feb. 6, according to data compiled by Bloomberg. About 8.7 million shares were traded, or 22 percent of the three-month daily average.
Transcorp, as the company is known, hasn’t paid a dividend since its incorporation in 2004, Lambeth Chief Executive Officer David Adonri said by phone from Lagos.
“There is speculation the company will pay a dividend for last year to stimulate investors’ interest in its coming rights issue,” he said. Transcorp’s 2012 earnings are expected within two weeks, Adonri said. No one answered two calls made to the company’s office today.
Profit for the nine months through September rose to 1.7 billion naira ($11 million), while revenue climbed 44 percent to 2.7 billion naira, according to the company’s website.
Transcorp plans to raise 15 billion naira ($95 million) by selling shares to existing investors and taking loans from banks to refinance a power project and expand investments in oil exploration and hotels, it said on March 28.
Nigeria signed deals to sell 15 state-owned power companies to buyers including Transcorp, which bought the Ughelli Power Plant, the West African nation’s privatization agency said on Feb. 22. Transcorp jointly owns an oil lease with Johannesburg- based SacOil Holding Ltd. (SCL) and London-based Energy Equity Resources Ltd. in the oil-rich Niger River delta.
The stock has advanced 32 percent this year, compared with a 19 percent rise in the Nigerian Stock Exchange All-Share Index. (NGSEINDX)
To contact the reporter on this story: Emele Onu in Lagos at email@example.com
To contact the editor responsible for this story: Vernon Wessels at firstname.lastname@example.org