• Wednesday, May 22, 2024
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BusinessDay

Transcorp hits longest winning streak in 2 months

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  Transnational Corporation of Nigeria, 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 yesterday, gaining 7.8 percent to N1.39 by the close in Lagos, the longest set of gains since February 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, David Adonri, Lambeth chief executive officer said.

“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.

Profit for the nine months through September rose to N1.7 billion ($11 million), while revenue climbed 44 percent to N2.7 billion, according to the company’s website.

Transcorp plans to raise N15 billion ($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 privatszation agency said on February 22.

Transcorp jointly owns an oil lease with Johannesburg-based SacOil Holding 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.