Operators explain new interest in Transcorp

17th December 2011

Some capital market operators have attributed investors’ new interest in the stocks of Transnational Corporation of Nigeria (Transcorp) to the appointment of Tony Elumelu as its chairman. Mr Elumelu was a former chief executive of the UBA Group.

They told the News Agency of Nigeria (NAN) in separate interviews in Lagos on Friday that investors were optimistic that Mr Elumelu would transform the company.

Rotimi Fakayejo, a stockbroker with Enterprise Stock Brokers Ltd, said investors are confident that the company would be transformed for better dividends in the years ahead. Mr Fakayejo said that Mr Elumelu’s track record at the UBA had made investors to be scrambling for the company’s stocks.

Garba Kurfi, chief executive officer, APT Securities and Funds Ltd, said that the company, after listing on the Nigerian Stock Exchange (NSE) in November, 2006, promised to be paying dividends from 2012. Mr Kurfi said the investors believe that the coming on board of Mr Elumelu would herald a new beginning for the company, considering the exemplary feats he recorded during his tenure at UBA. Elewole Bioye, managing director of Bytofel Trust and Securities Ltd, said that investors are buying into the company to benefit from its diversification programme.

Mr Bioye said that Mr Elumelu has come to renew Transcorp which he had longed for. NAN recalls that Mr Elumelu, chairman of Heirs Holdings and former Group Managing Director of UBA, emerged as chairman, Board of Directors of Transcorp on September 15.

Mr Elumelu joined the board of Transcorp in April, 2011, following the strategic buy-in of HH Capital, an investment arm of Heirs Holdings into Transcorp.