Transcorp Nigeria Rallies to 21-Month High on GE Deal
Transnational Corp. of Nigeria Plc, which invests in hotels, agriculture and energy, rose to the highest in 21 months after signing a deal with General Electric Co. (GE) for equity investment and technical support.
The stock gained 10 percent to close at 1.43 naira in Lagos, Nigeria’s commercial capital, the highest since April 2011. More than 50 million shares were on full bid, David Adonri, chief executive officer of Lambeth Trust and Investment Co., said before the close by phone from Lagos.
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 yesterday. Transcorp said Jan. 30 it signed an agreement with GE for the provision of technical support and equity investment in Transcorp Ughelli Power Plc.
“Investors believe the global pedigree of GE will enable Transcorp to maximize revenue from the huge potential of the power sector,” Adonri said.
Africa’s top oil producer and most populous country of more than 160 million people is seeking increased investments in power to meet demand that’s more than double the current output of about 4,000 megawatts. The government has ended state monopoly of power utilities and sold generation and distribution companies to private investors.
To contact the reporter on this story: Emele Onu in Lagos at firstname.lastname@example.org
To contact the editor responsible for this story: Dulue Mbachu at email@example.com