Transnational Corporation of Nigeria

Transnational Corporation of Nigeria Plc (Transcorp), is a diversified conglomerate with strategic investments and core interests in the hospitality, agribusiness and energy sectors.^[1] A publicly quoted conglomerate with a diversified shareholders base of about 290,000 investors, its notable assets include Transcorp Hotels Plc (Transcorp Hilton Hotel, Abuja and Transcorp Hotels, Calabar); Teragro Commodities Limited, Heirs Holdings Limited, Transcorp Ughelli Power Limited and Transcorp Energy Limited, operator of OPL 281.^[2]

Origin

Transnational Corporation of Nigeria Plc “Transcorp” was incorporated on November 16, 2004 with the goal of creating a Nigerian Company that is globally competitive. The original concept was that Transcorp would be a conglomerate, similar to the South Korean Chaebols.^[3] The goal of the founders was to set up a company capable of mobilizing local and international capital in the development of world class enterprises, under strong Nigerian management and leadership.^[4]

Transcorp's Businesses

Transcorp Hilton Hotel, Abuja

Transcorp Hilton Hotel is situated at the heart of Nigeria’s Federal Capital Territory. The Hotel is a 670-room 4 star Hotel with accommodation, dining, meeting rooms and leisure facilities to business and leisure travellers from all over the world. The hotel offers the benefit of the international standard guest reward program Hilton HHonors with which points & Miles are earned by members for stays at 3,700 hotels worldwide and airline miles with over 50 airline partners.^[5]

Transcorp Hotels, Calabar

The 146-room Transcorp Hotel is a destination hotel and is located in the heart of the city of Calabar, Cross River State, Nigeria. It is a well known landmark in the local community for locals and visitors.^[6]

Teragro Commodities Limited, operator of the Teragro Benfruit Plant, Benue State, Nigeria

Teragro Commodites Limited is the agribusiness subsidiary of Transcorp. It is a full value-chain enterprise with the objective to create value in agricultural raw materials by using technology to develop, manufacture, distribute and market high-quality consumer goods for all markets.^[7] Teragro Limited runs a juice concentrate plant in the Middle Belt area of Nigeria where the supply of agricultural raw materials are readily available. Its products are offered at a business to business enterprise model.^[8]

Transcorp Energy Limited, operator of OPL 281

Transcorp Energy was established in 2008 to spearhead the Transcorp’s thrust into the energy sector and to focus on upstream petroleum exploration. It is a fully owned subsidiary of Transnational Corporation of Nigeria Plc that is focused on the Group’s business activities across the entire energy value chain.^[9]

Transcorp Power Limited

Transcorp Power Limited (TPL) is a subsidiary of Transcorp. The company is the owner and operator of the Ughelli Power Plant which was privatised by the Federal Government of Nigeria during the privatisation of Nigerian Power Assets. The plant has an installed capacity of 1000MW.^[10] The plant is located in Delta State and has an available capacity of 480 MW as at november 2015. TUPL has made full payment of $300million for the plant.

Awards

Transcorp Hilton Hotel,Abuja was awarded the Best Hilton Hotel in Africa, the Middle East and Asia for the year 2010.^[11]

Hilton Abuja has been named the winner of Hilton Worldwide prize for ‘2012 GC&E Sales Team of the Year for the Middle East & Africa (MEA) Region. The award, announced at the Europe, Middle East and Asia Pacific Sales Conference in Vienna, Austria recognises the highest performing hotel Sales Team in specific Hilton Worldwide conference and events sales measurement metrics.^[12]

Transcorp Hilton Hotel recently won 'Nigeria's leading Hotel' for the year 2013 by World Travel Awards^[13]

Acquisitions

The Hilton, Hotel, Abuja: In December, 2005, Transcorp acquired 51% controlling stake in the Hilton Abuja for the sum of $105 million (equivalent at the time to N13.7billion) after a very competitive bid. The remaining 49% is owned by the Bureau of Public Enterprise (BPE).^[14]

Rumens Road: Transcorp also acquired Rumens Road Apartments at 1 Rumens Road, Ikoyi, Lagos in 2005 for N377m.^[15]

Oil Blocs: Transcorp acquired two oil blocs in the May 2006 bidding round, consolidated in one oil bloc, OPL 281 . Ownership of the OPL 281 oil bloc, which had previously been revoked by the Department of Petroleum Resources, was returned to Transcorp in February 2011 after the payment of the balance of the signature bonus . Transcorp is already partnering with Equity Energy Resources (EER), and a pan African energy company called SAC-Oil Holdings of South Africa, to take equity and provide resources that will bring the oil bloc into operation.^[16]

Metropolitan Hotel, (now Transcorp Hotels) Calabar: Transcorp acquired the 146-room Metropolitan Hotel in Calabar (now re-branded Transcorp Hotels Calabar) in June 2010.^[17]

Benfruits Plant: On November 29, 2010, Transcorp signed a lease agreement with the Benue State Government for the Benfruits juice concentrate plant in Markurdi, Benue State.^[18]

Ughelli Power Plant On September 25, 2012, Transcorp Ughelli Power Limited (TUPL) (which comprises Wood Rock Energy Resources Limited, Symbion power LLC, Thomassen Holding Limited, Medea Development S.A., Tenoil Petroleum and Energy Services Limited and PSL Engineering and Control Limited) won the $300m bid for the acquisition of the Ughelli Power Plant, one of the six power generation companies of the Power Holding Company of Nigeria (PHCN) being privatised by the Federal Government of Nigeria. The Ughelli plant is a thermal power generating plant located in Delta State, Nigeria with installed capacity of 1000MW but currently producing 330MW which accounts for 8% of Nigeria's total power generation.^[19] On February 21, 2013, Transcorp attended the official signing ceremony at the Presidential Villa in Abuja, Nigeria for the winning bidders of the privatisation of the Power Holding Company of Nigeria. The ceremony was presided over by the Nigerian Minister of Power, Professor Chinedu Nebo and hosted by the Bureau of Public Enterprises (BPE).^[20] TUPL met the 25 per cent deposit deadline by paying the sum of US$75million to the BPE on March 20, 2013 and on August 21, 2013, TUPL made payment to the BPE of $225million, representing 75 per cent of the $300million bid price for the 1000 mega watts capacity Ughelli Power Plant. On November 1, 2013, the Federal Government of Nigeria officially handed over the plant to Transcorp Ughelli Power Limited^[21]

Recent Partnerships

On January 30, 2013, Transnational Corporation of Nigeria Plc and General Electric (GE) signed a framework agreement to collaborate to address the infrastructural needs of Nigeria, with emphasis on the power and transportation sectors specifically rail transportation.^[22] GE, a global leader in the design, manufacture, supply, installation and maintenance of technology and services for the power sector, confirmed its commitment to facilitate the generation of 10,000MW of additional power in Nigeria over the next decade in line with its existing agreement with the Federal Government of Nigeria, signed in March 2012.^[23]

External links

• Transcorp Corporate Website

References