TransCorp Nigeria
100% Nigerian. 100% World Class
Beautiful Slogan, you would agree. The slogan could become a problem if TransCorp decided to expand outside Nigeria. For now, TransCorp is 100% Nigerian, not sure 100% World Class.
A friend told me about TransCorp’s roadshow presentation at St. James Park in London and I gladly agreed to attend. Naturally I was excited about the attending my first Nigerian roadshow. I made a few observations; allow me to share them with you.
The IPO of TransCorp should be the gold standard for other companies looking to “go public”. The IPO prospectus omitted crucial information. It failed to state the any “meaningful” historical accounts for the company. After the Cadbury Nigeria incident, accounts should be detailed and thorough. The IPO prospectus should have some historical accounts for NITEL and TransCorp Hilton to give prospective investors an idea of the profitability of these businesses. Forecasts are only useful when compared with historical accounts.
At the roadshow presentation I attended, the TransCorp Executives could not confirm the number of subscribers on the M-tel network. I find that very odd. Are they suggesting they paid good money without due diligence? This report offers very little comfort to prospective shareholders suggesting subscribers in 2006 stood at 200,000 from 1.2 million in 2005.
The same report suggests 75% of NITEL was sold to TransCorp. In the IPO prospectus, TransCorp owns 51% of TransCorp Telecomms. TransCorp Telecomms owns the 75% of NITEL. So TransCorp owns half of the 75% stake? This is poor disclosure.
The roadshow presentation was not what I expected. Standing for thirty minutes and listening to someone defend Obsanjo’s Tata idea for Nigeria was not cool. The TransCorp Executives failed to communicate their ambition for the company. I’m more optimistic but let’s see what happens in May first.
Tags: Business, Investments, Nigeria, Trancorp
Comments (4)
Not surprised one bit…
Dr Ndi Okereke-Onyiuke as the NSE’s boss shouldn’t be running the show at TransCorp, for starters…
transcorp’s acquisition of NITEL viz-a-viz BPE’s softness in the deal as speculated by the media, to me might give the expected TATA OF NIGERIA a faulty take off moreso with the involvement of Obasanjo, the aclaimed apostle of anti corruption. One would expect the intervention of EFCC to prove that her (efcc) apprehention is none selective and no Nigerian is bigger than the law especially when a law maker suddenlly becomes the law breaker.
May is here o! BT has withdrawn out of the technical agreement with Transcorp/Nitel. Transcorp’s MD is on compulsory leave. The press said its IPO was seriously under subscribed. So Buddy, how optimistic are you again?
I hope you are well.
When I posted about Transcorp earlier this year, I said May 2007 would be a crucial month for the company. The hype about Transcorp has come and gone.
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