Transcorp Not Enjoying Any Special Privilege From FG— GMD
By Michael Eboh
 3rd JAN 2007

The management of Transnational Corporation of Nigeria (Transcorp) Plc has declared that the company is not enjoying any special privilege from the federal government. This declaration was made by the Group Managing Director/Chief Executive Officer of the company, Mr. Bernard Longe, in reaction to the insinuations among some Nigerians that government is heavily involved in its activities and that it may go down after the tenure of the present administration.

According to him, “Nigerians should not worry about the future of Transcorp after Obasanjo, because the federal government has no stake in the company and the survival of the company is assured because it is quoted on the Nigerian Stock Exchange and does not get any subvention, allocation or concession from the government.”

He further stated that the company, as a result of its recently concluded private placement, has over 2,500 Nigerians as owners who have the desire to build a world class company that will compete favorably with other companies in the world and improve the country’s economy.
He stated that if not for the intervention of Transcorp in buying up some of the establishments that were privatized by the federal government, national assets like the Hilton Hotel, NITEL and MTEL, would, today, be owned by foreigners who will exploit our economy and repatriate the profits earned from Nigerians to their countries.

He added that “if a new government comes into power and decides to get rid of Transcorp, such government is not undoing the company but undoing the country.”
Mr. Longe further stated that Nigerians should not lose sight of the laudable objective for which the company was established in the good interest of the country, while calling for the setting up of more companies like Transcorp in Nigeria.

He explained the company’s decision to venture into different sectors of the economy like energy, information and communication technology among others, saying that Transcorp intends to be a holding company that will appoint different managers to run the affairs of the various subsidiaries owned by it adding that the company has an operating model that is designed to handle the problem of size. 

On the company’s IPO, he stated that the company is providing an opportunity for investors to diversify their investment among the companies acquired by it with a single purchase of Transcorp’s shares which has been priced very low to make it affordable for majority of Nigerians.

According to him, “there is probably no single share in the market that offers a similar portfolio of promising companies; you get a diversified portfolio with a single investment. Investors in Transcorp will reap very significant capital appreciation in the medium term, along with bounteous cash dividends in the long term.”
He further stated that investors who buy into the company’s shares are buying into the ownership of several globally competitive businesses such as NITEL, MTEL and the Transcorp Hilton Hotel, adding that, “investing in Transcorp is investing in Nigeria’s future. Transcorp is yours, take it 100%”.

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