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Transcorp Hotels Plans To Sell-Off Transcorp Hotels Calabar Amid Loss-Making

 

The board of Transcorp Hotels has perfected plans to sell-off all the company’s stake in loss-making Transcorp Hotels Calabar Limited.

At the Annual General Meeting (AGM) of Transcorp Hotels last week in Abuja, shareholders directed the board to sell off the company’s 100 per cent stake in the entity because it was not adding expected value.

In a notice filed to the Nigerian Exchange (NGX) Limited, Transcorp Hotels confirmed that this was one of the resolutions passed at the yearly gathering.

The hospitality firm stated that participants at the meeting agreed, “That the company be and is hereby authorized to dispose of its 100 per cent equity interests in Transcorp Hotels Calabar Limited in accordance with relevant laws, statutes, and regulations.”

In the 2022 accounting year, Transcorp Hotels Calabar recorded a N269.3 million loss compared with the N3.5 million loss in the preceding year, though revenue improved by 16.73 per cent to N1.0 billion from N858.4 million reported in 2021.

The cost of sales grew by 16.66 per cent to N350.5 million from N300.5 million in 2021, while operating expenses rose to 37.48 per cent to N766.7 million from N557.7 million.

As of last December, the worth of Transcorp Hotels in the business was around N3.50 billion, but it is not certain if a buyer would be willing to pay this amount for a venture making such losses.

But the shareholders of Transcorp Hotels are resolute and have mandated the board to let go to enable them to enjoy a better return on investment.

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In the 2022 fiscal year, Transcorp Hotels only paid out 13 Kobo as dividends, and the cash reward was paid to investors whose names appear on the company’s register of members as of the close of business on March 17, 2023.

 

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