Facts emerged that the Securities and Exchange Commission (SEC), the apex regulator of the Nigerian Capital Market was not involved in the 2013 Right Issue which diluted the stake of the Federal Government of Nigeria in the Transcorp Hotels Plc from 49% to 12%.
Source from the SEC who does not want to be named in press because he was not authorised to speak on the issue, said the transaction was carried out in December 2013 by Transcorp Hotel and Tourism Limited, prior to its conversion to a public company.
The source, who reacted to a story published in Daily Trust, last Saturday, which says, SEC gave it nod to the process, said the reporter didn’t verify the fact very well and was not informed about the whole transaction before rushing to press.
“The Right Issue therefore did not fall within the regulatory purview of the commission and as such not subject to the prior review and approval of the commission.” the source added.
“ The SEC approves only securities transactions by public companies in line with the provision of the Investments and Securities Act 2007 and the rules of regulation made pursuant to the Act.”
He said it was after the share dilution; the Transcorp Hotel then approached the SEC for the registration as Plc and proposed Initial Public Offering of 800,000,000 shares of 50k each as N10 per share in August 2014. “ This was the first securities transaction by the company in the record of the commission.”
The Minister of Finance, Mrs Kemi Adeosun recently asked the SEC authority to investigate the issue and report back, to allow government determine the fate of the transaction.
The source said the commission has since commenced work on the directive of the minister and will report back as soon as possible.
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
