By James Emejo
The Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Tony Elumelu, yesterday explained the company’s decision to commit over $120 million to the rehabilitation of Transcorp Hotels, saying it was meant to lay an investment, “foundation for a better tomorrow.”
He said shareholders had invested wisely in the project, adding that, “your investment will yield huge dividends.”
Speaking at the 15th Annual General Meeting (AGM) of the company in Abuja, he noted that it was the first time the level of rehabilitation was being undertaken in the hotel since its existence about 30 years ago.
He said: “We did this because we are long term investors. We believe in investing today for better tomorrow.
“This hotel is here to make money for shareholders. In terms of value of the assets, they have significantly improved.
“We are laying investment foundation for a better tomorrow.”
He further assured shareholders that for “Transcorp, the future is extremely bright. This is time for wise investors to secure their future and that of their children.”
This is as the shareholders commended the board for significantly cutting administrative expenses and ensuring sustainability of the company amidst the adverse operating environment imposed by the COVID-19 pandemic.
Among other things, they said, they expressed their appreciation over transcorp’s milestone on energy especially the successes at the Ugehli and Afam power plants which had enable it to commence commercial exports.
Shareholders also, expressed optimism that the company’s share price will significantly appreciate given the company’s recently positive performances.
“Congratulations Tony for the good job with your team,” one of the shareholders said.
The investors also showed their appreciation over the dividend payout to shareholders despite the difficult operating environment.
However, Elumelu, also took time to clarify on the over N97 million impairment on its balance sheet, pointing out that it was only a debt owed by the federal government to power companies.
He assured the shareholders that there had been lots of improvement in the repayment process and commended the government particularly the Governor of the Central Bank of Nigeria (CBN) for facilitating the debt repayment obligations to power firms.
He said:”I am sure it should be more now. It’s actually a debt owed by the federal government to power companies.
“But as I said, things are now improving. Let me recognise the efforts of government especially the CBN governor who had been extremely patriotic and involved in driving the improvements in the repayments in the power sector. We hope that progressively they’ll clear all of these.”