Transcorp Investors to Get Dividends Next Year
INVESTORS in the Initial Public Officer (IPO) of Transnational Corporation Nigeria Plc (Transcorp) may be paid their first dividend next year, according to Mr. Patrick Okigbo, the Chief Finance Officer of the company.
Okigbo, who is also the corporation's Group Treasurer, assured investors at the April 2008 Institute of Directors (IOD) Nigeria members' public and government affairs evening held at the institute's secretariat, Lagos on Wednesday that the organisation was in good health.
Before the statement, investors, who had been following recent happenings in the multi-billion corporation had been entertaining fears of investment loss. But Okigbo, who stood in for the Group Managing Director of the company, Mr. Tom Iseghoni, said the organisation would stick to the original plan contained in the prospectus during the public offer.
Describing the subscription of the offer as a near success with about 32.6 per cent, he said the corporation would reward its investors for reposing confidence in it.
Okigbo stressed that the current repositioning in the Nigeria Telecommunications (NITEL) by Transcorp would soon bring joy to investors despite the low price the company's stock sells in the market.
According to him, plans are in top gear to secure an investor, which will make the organisation check obstacles to its progress and raise the share price in the market.
Describing the current problems with the privatisation of NITEL as unfortunate, Okigbo said there was light at the end of the tunnel following the resolution of the grey areas which were inimical to the working of NITEL.
Okigbo, who spoke on the topic "Global sector trends: Transcorp and Nigeria opportunities," said the country could ride the global wave to join the league of industrialised nations if an enabling environment was put in place.
He criticised the involvement of government in business, stating that global trends demanded that the private sector must drive the economic engine.
Describing Transcorp as a unique vehicle to lead the charge, he said the organisation was in tune with the seven-point agenda of President Umaru Musa Yar'Adua and had structured the operations of the company in five areas of project management, infrastructure development, agriculture and brain drain reversal.
He said investors would start enjoying the dividend of their investment as soon as the exercise was completed.
Reacting to the recent strike action embarked upon by NITEL employees over unpaid salaries, he said the incident occurred because the company lacked money to pay them.
According to him, the strike has raised several questions relating to financial impropriety, which made NITEL inefficiency in the past years.
Earlier, President of the institute, Olusola Dada, had said Transcorp was invited to attend the meeting because the company represented the hope to complete the nation's last phase of privatisation.
He said the institute was worried by developments in Transcorp, especially as it concerned NITEL.
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