Transnational Nigeria Rises Most in 2 Weeks on Share SaleEmele Onu
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.