they would try and buy,but we would not sell cheap

Interesting article in Transcorps main asset -http://odili.net/news/source/2007/jan/28/211.html

My biggest fear is that when that stock eventually implodes,it will bring down the whole of the stock market since it will undermine confidence in the capital market

Ah, the obituary is being read already. . . some people just can't wait

We just have to wait and see.

Transcorp is a good buy only for those who have spare money to tie up. I personally believe that it is better to wait out their losses. So I wont be investing in their IPO. I will reveiw the situation come 2009.
But please if U dont have any other use for your money please invest. Afterall i will need people to buy from when I choose to enter it

Dont buy Transcorp if u cant wait for the next 2 years

How can the DG of the stock exchange be the Chairman of Transcorp? That is massive corruption just waiting to happen! My goodness, what are they up to?

i agree totally their is something realy fishy all the heap it like puttin gin in our face well they have good advertising but will they deliver

well i just feel Nigerian should ask more questions and good competetion free market, computer village more of t hat will do well for th e average Nigerian on the street.

Posted by:xxxxxx on the Nigeria Village Square:

What do you all think of this?



On: Feb 2, 2007 02:37 AM

*I just found this in my in-box. I have no idea who the sender is. Read and draw your own conclusions.

xxxxxx *

TRANSCORP: Buyer Beware

I am still convinced that injustice anywhere threatens justice
everywhere.
*
If you had read the news a couple of months ago, there were serious
allegations of fraud and conspiracy by various government officials.
OBJ was accused of investing in the corporation as well as other top
shots who were accused of using the corporation as a front for their
illegal loot.

What is Transcorp

Well, it is Nigeria's first "so-called" mega-conglomerate. But unlike
most conglomerates that start small and grow over a long period through
mergers and acquisitions, Transcorp started big with immense capital,
political backing from the presidency, and the questionable intention
of wanting to invest in an array of industries. Transcorp summoned some
of the countries leading moguls for its propaganda- Aliko Dangote was
conscripted. Also, wealthy individuals and those close to the president
are part of the Transcorp campaign. Just recently, Transcorp left the
borders of Nigeria targeting Nigerians at home and abroad to invest,
and thus meddle with this leper Organization.

Who Are the Owners of Transcorp

The owners happen to be those who are seriously connected to the
president. The president was given a share of 200 million naira and
various sectors in the Nigerian industry were sold to these people.

There was no fair bidding process. NITEL, Oil Blocks, etc were given
to cronies under the umbrella of Transcorp. There is nothing wrong in
having connection with the government to make money, but what I don't
agree with is arresting others who do what you do and put up all sorts
of fronts on your behalf.

*

In a recently published article, the public outcry over President
Olusegun Obasanjo's multi-million naira equity holding in Transnational
Corporation (Transcorp). It was said that two of his aides have
revealed how the promoters of the mega firm raised N200million to buy
the shares for him through a blind trust. Federal Capital Territory
(FCT) Minister, Mallam Nasir el-Rufai and Chairman of the Economic and
Financial Crimes Commission (EFCC), Mallam Nuhu Ribadu, said Ndidi
Okereke-Onyuike, Jim Ovia, Festus Odimegwu and Tony Elumelu, all
Transcorp directors, cashed in on the President's interest in the
company to get the shares for him.

Also, in an interview with The Nation, situated in Abuja, Ribadu
recalled that on the day Transcorp was launched, the president
signified interest to be a shareholder and "while he was doing this,
there were some smart guys around, very smart and I call names for you.
People like Elumelu, Ovia, Odimegwu, Okereke-Onyuike, These were the
gangsters. These are the owners of Transcorp. "They took over the
opportunity. They were the ones who went and organized to say they were
going to give him loan in the United Bank for Africa (UBA). They took
N200million from UBA and they gave it to the blind trust to buy shares
for him, "They were the ones who were promoting third term* for him;
they suddenly made him do something else. It is UBA money that was
taken, He was aware of it, The fact is that he didn't know it was
something that is not acceptable." (The Nation)
*
Antitrust Laws
I see a future in Nigeria where the public will be stifled into price
monopoly and price fixing. Also, Transcorp may effectively control all
the plum allocations in the oil blocs as well as ruin the economy
through price fixing. Once you have this so-called mega-corp. that is
owned by all Nigerians, in the interest of all Nigerians, that will
share benefit to all Nigerians, communism will befall all Nigerians.
There is no need mentioning the damages that communism can inflict on a
nation. Transcorp comes to Nigeria as a sheep in Wolf's clothing and
the prospects of a true capitalist society will be threatened. I think
that there are other good viable corporations that one can support
without being an accessory to theft of the Nigerian populace.
*
The Business Argument
The business argument goes like this: We are in it to make money and
there is no conscience in Business.
I retort by asking, "are assassins not in their profession to make
money?"
*
My fellow Nigerians, I will advice, based on the history of that corp,
that we do not invest in it. We must play our part in building Nigeria.
It is not enough to blame those who mess up country, or steal from it.
By supporting Trancorp through purchase of shares, we have gently
acquiesced in the charged and alleged corruption. In legal terms, we
become "accessory to theft."
*
Whether Transcorp makes or does not make money, we would know that we
have played our part; I tell you, however, convinced that the arc of
the moral universe is long but bends toward justice, that there is a
strong likelihood that Transcorp will not survive the test of time.


Now imagine a political situation in which Buhari wins, and EFCC is
given the power to investigate Transcorp, your stocks will crash faster
than you can say "Jack Rabbit."
*
One should ask why is it that they are so desperate to sell shares just
before the election?
Did anybody at the meeting ask them about the potential antitrust
issues and the accusations that were leveled versus the president in
his hand in the corp.?
Why did they get 4 oil blocks so easily? How come they have not
improved NITEL since it was purchased? ETC

*

The Facts about Transcorp in the News
In September of 2006, an article reported that Chairman of
Transnational Corporation, Dr. Ndi Okereke-Onyuike, who is also
supposed to be the director of Nigerian Stock exchange, confirmed
speculations that President Olusegun Obasanjo holds equity shares in
the company. Her revelation came barely 48 hours after the Economic and
Financial Crimes Commission (EFCC) raided the Head Office of the
company reportedly in a bid to 'investigate' the shareholding structure
and operations of the company.

Okereke-Onyuike told the House Committee on Capital Markets that "the
president had subscribed to the shares of the company when it was
established. Even though she did not specify the amount of shares held
by the president, her revelation confirmed media reports that the
president owns between 200million to 600million shares in Transcorp.
The shares are reportedly being held for the president in blind trust
by Obasanjo Holdings, the parent company for all his firms which
include Obasanjo Farms, OHL Quarry, OHL Properties and Tempo Foods and
Packaging Limited. Since Transcorp was established, it has enjoyed
tremendous presidential waivers in the different sectors of its
operations. This is apart from the preferential treatments it got in
its bid to buy some public companies like NITEL and Nicon Hilton (now
Transcorp Hilton), in the on-going privatization program of the federal
government.

The recent revelation by Okereke-Onyuike no doubt brings to question
the anti-corruption stance of the Obasanjo-led government. The many
privileges and presidential waivers that the company has enjoyed within
the short period of its existence are no doubt in question because
these waivers were given by the president to a company in which he is a
major shareholder. Transcorp upon inception got approval to build a
$250 million (about N33.25 billion) refinery in Lekki Free Port Zone in
Lagos. The company bought 75percent shares in NITEL under circumstances
which many have described as dubious since only 51percent shares of the
company were advertised for sale to a core investor. More so, this was
done even after Orascom, the Egyptian telecom company that failed to
meet the reserved price, was said to have offered to increase its offer
to meet the reserved price.

The president is said to have acquired significant shares in United
Bank for Africa (UBA) through one of his aides during the consolidation
program. When Tony Elumelu whether it was true that the president had
shares in the company, it was said that he avoided giving a categorical
answer to the question thereby raising suspicion amongst management
that the president may be a major shareholder in the company.

The recent revelation by the Chairman of Transcorp and the evidence
provided by the VP indicting the president of corrupt practices
undoubtedly raises more questions than answers on the federal
government's seeming war against corruption. This no doubt raises the
question on whether the much talked about anti-graft agency - EFCC -
can really summon the courage to investigate activities of the
president from 1999 to date.

Currently, questions are being asked as to why it took this long for
the EFCC to launch an investigation into the activities and operations
of Transcorp. The ability of the commission to conduct a sincere probe
into the shareholding structure and operations of the firm is also
being questioned.
As Nigerians wait to hear the outcome of EFCC's probe of the company,
and other possible dealings of the Commander-in-Chief, the commission
would do the nation a lot of good if it hastens its investigations and
tell the public what it has found out about Obasanjo's Transcorp shares
and the sources through which this and other investments were
financed." (at Corruption charges and Questions trail Obasanjo's Shares
in Transcorp, at
http://www.usafricaonline.com/obasanjo.transcorpdeal.html By Anas A.
Galadima in Abuja)

Recently, the EFCC published some disturbing reports involving
corruption that linked the Rivers governor, Dr. Odili, with Transcorp.
The Economic and Financial Crimes Commission (EFCC) has said it is
investigating Rivers State governor and presidential aspirant of the
Peoples Democratic Party (PDP), Dr. Peter Odili over misuse of public
funds to the tune N100billion. Other allegations, against Odili,
according to the EFCC are: money laundering, foreign exchange
malpractice, stealing, conspiracy and abuse of office. (Info at Our
case against Odili; Dec. 13, 2006, at
http://www.efccnigeria.org/index.php?option=com_content&task=view&id=1156
&Itemid=2, by EFCC)

Who knows why Dr. Odili has been pampered by the presidency even in
the midst of the heavy allegations. The most detailed report about
Transcorp can be seen in the one of our nations top news magazines,
Newsweek.

*Newsweek reported the following:

The sale of Nigeria Telecommunications Ltd, NITEL, to Transcorp, a
company in which President Olusegun Obasanjo is said to have interest
is still generating dust. The company became more visible after its
purchase of Nicon Hilton and the controversial purchase of moribund
Nigeria Telecommunications Limited, NITEL for $750 million. The
negotiated sales strategy adopted in selecting Transcorp by the Bureau
of Public Enterprises, BPE, generated criticisms from Nigerians who
claimed that the whole issue was devoid of transparency and fair play.

*Transcorp was selected out of seven contenders that emerged from 28
expressions of interest received by the BPE. Rules are being bent to
enable the company pay after reneging on initial payment agreements.
The criticism that trailed the sale was so sharp that Aliu Wadada,
chairman of the House of Representatives committee on capital market,
said the House would probe the sale of NITEL. According to him, the
committee's concern was to see that the process was transparent.

He said Transcorp initially under-prized NITEL and its subsidiary,
MTEL with the claim that it has an intimidating debt profile but was
forced to scale its price upwards when more determined companies began
to show willingness to offer something bigger. That could probably
account for why it is yet to meet up with the payment agreement.

As sad as the situation surrounding Transcorp is, some applaud the
selection of transcorp by BPE on the ground that it is an indigenous
company. Chris Uwaje, an information technology professional said the
federal government should be commended because it would have been a
folly to sell NITEL to outsiders. "That is one of the most strategic
decisions of the federal government in the twenty-first century. It
would be folly to give it to outsiders. No person sells his heart
outside. You have Duetche telecoms, British telecoms, France telecoms,
the government should be commended because that is the backbone for the
knowledge economy of the future," he said. Chife Alloy, chief executive
officer of Socketworks, an indigenous software firm said: "Transcorp is
a local company and it has the capacity to turn NITEL around."

The reasons given by Chris Uwaje are very weak. After all we have
great corporations like Dangote Group and Adenuga that can compete with
the best in any part of the world. There is simple no justification for
what is going on concerning Transcorp activities.

Recent events now justify the fears of those who felt something was
wrong with the Transcorp deal. People report that President Obasanjo
allegedly acquired 600 million shares in Transcorp. According to
reports, more than 200 million shares were taken up by his company
Obasanjo Holdings Limited, Abeokuta while 400 million shares were
acquired by cronies. All the shares were allegedly acquired at N1 per
share by the president and his men while Transcorp shares were offered
for sale by private placement at N6 per share. And the entire N600
million arising from the share allocation was fully paid as well.
Newswatch could not confirm the names of the cronies who benefited from
the allocation as at press time last week.

But the magazine learnt that Atiku Abubakar, the vice-president was
allocated 100 million shares by the president. Immediately, the
vice-president was informed about the reserved shares for him, he
rejected it. In a letter dated May 19, and addressed to the managing
director of Transcorp, the vice-president said he was informed of some
reserved shares meant for him in Transcorp and rejected the offer. The
letter reads: "I have just been informed that some shares have been
reserved for me in your corporation for which I am expected to
subscribe. I write to formally inform you of my decline of the offer. I
thank you for the kind gesture and wish you best of luck."

A number of people alleged to be Obasanjo's men were also said to have
been allocated shares. Nasir El-Rufai and Charles Soludo, FCT minister
and CBN governor respectively were indeed alleged to have been made
offers. The CBN in Abuja said last week that they were not aware that
the president offered 100 million shares of Transcorp to the CBN
governor. One Abdullahi, a CBN staff from the corporate affairs
department told Newswatch on phone that they are hearing it for the
first time. "I don't think there is anything like that. In any case, I
wouldn't know unless they tell us," he said. He refused to disclose his
full identity. When Newswatch contacted Remi Oyo, President Obasanjo's
spokesperson, she declined to comment on the matter. She had earlier
denied the allegation in a press statement.

Newswatch also gathered that more shares of the company are to be
offered for sale soon at the price of N10 per share. Also, the
president was said to have approved the sale of NITEL to Transcorp and
not Abubakar, the vice-president who is the chairman of National
Council on Privatisation, NCP. From indication, it appears that the
vice-president was opposed to the sale of NITEL to Transcorp.
Information reaching Newswatch has it that the sale of NITEL has been
removed from NCP and BPE. It is now being handled by the national
executive council under the president.

The controversial shares are alleged to be held for the president by
his company on a blind trust. Blind trust is a legal arrangement where
a public official put his private business interest in the hands of
trustees who shield him from day to day business decisions thereby
avoiding a potential conflict of interest. But this legal arrangement
is not in Nigeria's statute books. This probably accounts for why
Obasanjo cleverly opted to protect himself personally by fronting his
company, Obasanjo Holdings Limited, OHL.

When Newswatch visited OHL, the parent company of all Obasanjo's
businesses which includes Obasanjo Farms, OHL Quarry, OHL Properties
and Tempo Foods and Packaging Limited at Quarry Road, Abeokuta last
week, Lucky Egede, the group managing director was said to have
travelled to Abuja. Newswatch was able to reach him on his mobile line.
He said he was a private business man and not a politician and declined
to respond to the allegations leveled against his company. He advised
Newswatch to extend its enquiries into other shareholders of Transcorp
by going to the Corporate Affairs Commission, CAC, for investigation
instead of limiting it to OHL. Egede, however, owned up to the purchase
of the shares for president Obasanjo under a blind trust according to a
Lagos based business magazine.

According to Newswatch, enquiries at the CAC did not reveal the names
of the shareholders and the amount of shares purchased in Transcorp,
rather it discovered that OHL was incorporated on September 18, 1986
and has 19 Onijaiye Street, Abeokuta, as its contact address. Its
registration number is 89233. The company has 5 million as its allotted
share capital with three directors. They are, Onaolapo Soleye, with 56
Quarry Road as contact address, Daniel Atsu of 3/5 Ayorinde Street,
GRA, Ibara, Abeokuta and Lucky Egede of the same address. (Info at
Newswatch, The Dirty Transcorp Deal * Aug. 28, 2006)

Even Dangote Abstained

One of Nigeria's business greats, Aliko Dangote, resigned from the
board of Transcorp. The question at this point is "why should you buy
it?"

Transnational Corporation of Nigeria Plc (Transcorp) may be heading
for crisis as one of its founding members, President and Chief
Executive Officer of Dangote Group of Companies, Alhaji Aliko Dangote
has resigned from its board. Although details of his resignation still
remained hazy as at press time, there were also indications that the
Central Bank of Nigeria (CBN) may have also been putting pressure.
(Info at Thisdayonline, Crisis Rocks Transcorp, Dangote Resigns,
Pressure on Ajekigbe, others
Ayodele Aminu, Dec. 12,2006)

Conclusion

My fellow Nigerians these are the facts. You decide whether you would
hold yourself to a higher standard. You decide whether you want to be
an accomplice to what is unfair and simply unjust.

The question remains "whether you would insult fraudulent Nigerians
but yet be willing to eat the fruits of their pillaging?"

On an economic basis, we must be careful because as the facts show,
there seems to be a rush to sell these shares before the election
commences. A reasonable man should ask why?

*With the sale of the shares to us, they make a huge profit. Under
company law, you as a shareholder will bare all losses that may result
from any failure of the corp. Shareholders bare risk. It is your duty
to do your due diligence. I have given various reasons why we must no
partake in this venture. At this point, if we were to buy the shares
and the stocks crashed, the shareholders in Transcorp would make a huge
profit of our backs. As reported by Newswatch, while all the shares
were sold to the protagonists of Transcorp at N1 per share, they are
now selling it to the public at N6 per share. I imagine that they are
selling to those of us overseas at more than the N6 value.

At this point, if we were to buy the shares and the stocks crashed,
the shareholders in Transcorp would make a huge profit of our backs. As
reported by Newswatch, while all the shares were sold to the
protagonists of Transcorp at N1 per share, they are now selling it to
the public at N6 per share. I imagine that they are selling to those of
us overseas at more than the N6 value.

If we must invest in our country, we can invest in Dangote's
corporations or Adenuga or other open responsible corporation,
including the banking sector.

Even if Transcorp becomes the number 1 corp., which I doubt it would
for so many reasons than I care to go into beyond those I have given,
your conscience would be satisfied knowing that we were not part of the
problem in Nigeria.

Nitel was purchased more than a year ago by Transcorp but NITEL
remains an ineffective enterprise. What is Transcorp doing?


All the best,
The Nigerian Village Square

So much ignorance in the air, so much pessimism, too much vindictiveness.

It's sad that a company like TransCorp has become a political tool in the hands of envious and vindictive manipulators. What is wrong with Nigerians owning TransCorp? What is wrong with a Nigerian company buying Nitel? I see Atiku's name mentioned, as if rejecting 100 million shares makes him clean.

The truth remains that had a ~Chinese company bought Nitel for $100 million, it won't generate half as much controversy. Or if Obasanjo had used a front that could never be traced back to him and invest in Nitel (Like Atiku and IBB have done massively with GlobalCom), this would not have been an issue. What is 200 million naira worth of shares in a multi-billion naira investment? This is the kind of money that even local goverment chairmen steal yearly to fund their lavish lifestyles. Those who cannot see propaganda written all over this are as blind as a bat!!


There are massive crimes against humanity being commited daily in Nigeria by our leaders, yet TransCorp with it's noble aspirations have sudenly become the issue in a political year.

I truely feel sorry for our nation, especially those who are so mentally impaired as to buy into this tackless propaganda.

@Omoba3,

And where was the source of this great wisdom you are trying to pass down to us,
is it from The Nigerian Village Square? What is that? A newspaper, blog, or
just a personal personal diary that is online? Who is behind it? Do they have any
agenda? Are they credible? I hope you see where I am going. . .

Let me ask you - so what's your take on the whole Transcorp matter now that you
have been educated by the Nigerian Village Square? Really, what's your take on the
affair? Do you think the entire thing is a sham or do you think there might be some
positives in what Transcorp is trying to do?

Do you think its a good idea for even a common civil servant to own a few shares in
the same company that the president and some of the richest businessmen in the
land are involved in? After all, if these big men are interested in this one company, it
might be something worth owning, don't you think so? I will honestly like to get your
input. Cheers.

@Iyke-D,

I have been following Transcorp for a while. My initial intention was to buy, but I am holding off for now.

I figure that instead of tying my money down for now and waiting for up to two years to get something substantial from it,
I could very well in that space of time turned my money over repeatedly, which for me is quite profitable and then when I see the right moment get into Transcorp.

The profit I would have made before going into transcorp would make it worthwhile at the time I do choose to go in.

Regarding the post from NVS, I was just sharing info as I find it. It's up to the individual what they make of it.

I make no judgements.

@omoba3

You are a smart man - I can't fault your thinking at all. Best of luck!

Trans-Corpse.

Not My Corpse. Over The Dead Body!!!


Death Transfer or Wealth Transfer? There are a series of mo profitable shares on the NSE

Polish Your Eyez

What is it? Someone seems to be very very bitter about something. . . I can't really place my
finger around it - it sounded pained, as if someone is having a flash back. Folks, its not that
serious o!

@Iyke-D Thanks for the compliment




A White Paper On Transcorp - Analyst's Report

Draw Your Own Conclusions!

This is a pdf file for my personal viewing. You can equally subscribe to WWW.PROSHARENG.COM.

I am unable to attach the main file as Nairaland server says its too big.

Here is a cut and paste of the analyst's opinion and conclusion.




The Initial Public Offering of
Transnational Corporation (Nigeria) Limited
An Independently Prepared
White Paper
January 2007
, Intelligent Investing

[b]J9. Opinion
Conducting a review on Transcorp has not been easy and providing the missing gaps
needed to achieve a helicopter view of the facts involved has been any less easy.
We can however suggest a conclusive investment decision at this time, based on the
analysis done in this report.
Transcorp represents a vehicle that promises so much change and opportunity to transform
the business landscape, whilst transferring the wealth of the country into the hands of its
people through the platform of the capital market.
No other scheme, platform or initiative to date, has been able to position every member of
the investing public with the opportunity to:
get a return from the oil produced in the country where all the key players are privately
owned companies. This will be the first time a player in the upstream sector would give
investors a share of the ‘oil dollars’;
get a return from the ever growing telecoms industry where, again, all the key players
are also privately owned and foreign dominated business (except for one – Globacom
Limited, a private and non-quoted company);
get a return from a shipping business, an otherwise capital intensive and exclusive but
highly rewarding business;
get a reward from the largely capital challenging agricultural processing and export
business; and
get a reward from tourism, entertainment and the widely acclaimed/regarded but
underdeveloped movie industry .
The business offer of Transcorp can be looked at from so many perspectives; yet the people
arrive at one seemingly ‘patriotic’ conclusion – “on paper, it is a bankable project”. For this
reason and more, it has been argued that people should invest in the company to give
Nigerians a chance to have a say in how the above deliverables are achieved. The logic is
compelling.
This thinking is an informed one and it naturally dovetails into the second school of thought
who utilizes the argument of ‘collaborative analysis - if that is the case, we should
understand what we will be managing’. The notion that the gains of democracy which
appears to have eluded Nigerians is now within grasps could not be sweeter than the
opportunity to actually influence the course of nation building through the democratic vote
which shareholding confers.
This school of thought has found an unusual ally with the hitherto pessimist group, who
now seem to have a new way of looking at the public offer. In a classic ‘domino effect’
response, they are demanding an answer to the question: What does an investment in
Transcorp translate to?
Clearly, the unspoken concern and risk driver is the unanswered value question in the
Transcorp proposition. At the core, people simply want to know whether Transcorp is
merely an experimental idea or a sound, profitable and sustainable business making its
initial public offering at a significant time in its evolution into a wealth basket of choice.
That is the remit of this report. We hope we have been able to provide an insight into what
Transcorp means to the investor, perhaps much less to the politically astute observer.
January 2007 Page 41
© 2007 www.proshareng.com
It is our hope that the information and analysis contained herein would provide the basis for
much more informed discussion on the subject.
Suffice to say however, we believe that Transcorp will be just one model out of the many
that would be derived from the emergence of mega-corporations in Nigeria in response to
the opportunities presented by the reforms of the financial services sector and the
increasing interest of the local and foreign investment community to unfolding events in
Nigeria.
Any serious business wishing to play in the Nigerian market place must be looking at a
capital base of over N50 billion to be taken seriously in the international market…a
threshold set in motion as a consequence of our reform agenda and the common-sense
capital requirement to turn the potentials identified into viable projects.
There will be more of such companies, including the expanded scope of existing businesses
that will have to respond to the size and scope of the new ‘real’ sector market economics.
Transcorp therefore represents much more than an idea, project or initiative….it is the
clearest attempt at evolving a new market model for business operations in and with
Nigeria. There is a lot more to learn about this phenomenon and it is worthwhile to
remember that reform cannot be carried out overnight, or perhaps even in three to five years
as highlighted by Transcorp, but it can be done.
For example, South Korea and Taiwan inherited large state-owned enterprises from Japan’s
colonial rule, but they managed to dismantle or privatize many of them over the years. The
trade-off between accumulation and distribution (or employment) is always difficult, but
Kim Dae Jung of Korea has shown that the worst abuses can be mitigated by severing some
of the ties between the government and the big enterprises. The listing of the shares of the
company and this public offer provides us some comfort that a significant move has been
made from the ‘usual’ practice.
The relative success of Korea’s reform program can be attributed to the depth of the
financial crisis that occurred concurrently with a defining presidential election. Kim Dae
Jung inherited Korea’s strong government, and he has used the full panoply of executive
powers to push through serious reform. Japan’s political system is often described as “a
web with no spider,” meaning that it has a strong bureaucracy with a relatively weak
executive branch. The situation in Nigeria is precisely the opposite. The president’s powers
are strong, while the bureaucracy is relatively weak. Since President Obasanjo’s re-election
in 2003, the spider has been moving rapidly through the web.
This fundamental difference helps explain the dynamism of Transcorp’s efforts by creating
a platform that eliminates political dithering.
We consider an investment in the shares of Transcorp a good investment but for short term
and long term players for the reasons advanced here. While capital appreciation presents a
pull for the short term investor, a successful execution of the plans and business articulated
here should provide considerable returns for an investor, in the long run.[/b]

To deviate from the topic, but related to it is the fact that while the government is trying to create wealth for Nigerians (re: Transcorp) on one hand, on the other they are busy screwing and impoverishing us. Should be really be grateful?

Why does it take an outsider (an oyinbo) to tell/reveal what is going on in our own backyard.

Read, digest and please drw your own conclusions!

http://www7.nationalgeographic.com/ngm/0702/feature3/index.html

Haba all these acolades for and against transcorp alone? Just kiding guys. Very useful info i must say.

Cheers.

BT Terminates Agreement with Transcorp
• IPO undersubscribed
From Ijeoma Nwogwugwu in Abuja, 04.10.2007



British Telecom (BT) has pulled out of the technical services agreement with Transnational Corpora-tion Plc (Transcorp) for the management of NITEL and its mobile subsidiary, MTel. Transcorp, with BT as its technical partner had acquired a 51 per cent stake in NITEL last year under the privatisation exercise handled by the Bureau of Public Enterprises (BPE).

But in a letter to Transcorp, BT cited the unavailability of working capital needed to turn around NITEL and MTel, and the lack of adherence to corporate governance principles by the companies’ management and their boards as the reason for its decision to withdraw from the agreement.
The decision by BT to terminate the technical services agreement it has with Transcorp could not have come at a worse time for the Nigerian conglomerate which is yet to overcome the disappointing returns from its initial public offering (IPO).
Capital market analysts estimate that the Transcorp’s IPO may have been undersubscribed by as much as 70 per cent.
Under the technical services agreement, BT was expected to have provided technical and managerial expertise to Transcorp for one year in the first instance, but the contract comes up for review by both parties every six months.

In exchange for its services and upon meeting key performance benchmarks that had been agreed under the contract, BT was supposed to have been paid a fixed fee and a performance bonus by Transcorp.
In addition, salaries of its two contract staff seconded to run NITEL and MTel for the duration of the technical services agreement would have been met by Transcorp.

Transcorp had also committed to raising substantial funds from banks and the capital market to inject into both telecom firms for their network expansion programmes and in order to meet other commercial obligations.
In that regard, Messrs Steve Brookman and John Weir were seconded by BT as CEOs of NITEL and MTel respectively in November last year to oversee their day to day operations.
Ms Funke Okpeke, meanwhile, was employed by Transcorp and appointed Chief Operating Officer (COO) of NITEL.

But ever since Transcorp took over NITEL, and by extension its mobile subsidiary in November, the reconstituted boards of both companies have been enmessed in internal wrangling among its members, on the one hand, and disagreements with the British CEOs on how best to manage the companies on another.

Specifically, John Weir, who was appointed CEO of MTel, has been at logger heads with the company’s chairman, Gboyega Olulade and other board members over the selection of equipment vendors for the company’s network expansion programme.
Weir was said to have shown a preference for the appointment of Huawei and Motorola, while Olulade was pushing for Ericsson and other vendors. Weir also took umbrage over the appointment of the new Chief Technical Officer (CTO), Davidson Anene, by Olulade without his input, and is said to have refused to recognise Anene as the company’s CTO.
This got to a head last month when MTel’s board comprising Transcorp members and Federal Government representatives terminated Weir’s appointment and gave BT four weeks within which it was expected to send his replacement.

His dismissal did not sit well with BT which was already getting disenchanted with Transcorp’s inability to deliver on its promise to provide working capital for NITEL and MTel, thus compelling it to pull out of the agreement in its entirety. Both companies are also riddled with massive debts owed banks, equipment suppliers and unsettled interconnect fees.

The void created by BT’s withdrawal could not have come at a worse time for Transcorp. The company’s IPO held between December and January this year is believed to have been undersubscribed by 70 per cent.
Even a two week extension granted by the Securities and Exchange Commission (SEC) to Transcorp which embarked on road shows to the UK and South Africa to shore up investors’ participation in the offer did not help matters.
Capital market operators are of the view Transcorp grossly underestimated the capacity of the market to absorb another major public offer right on the heels of the Dangote Sugar Refinery Plc IPO.
According to a market analyst, “the timing for Transcorp’s offer was obviously not right. It came at the end of the year when most investors were cashing in to raise money for the yuletide season. Besides, it came immediately after Dangote’s IPO which had soaked up most of the investible funds in the market.”
Transcorp, he posited, should have bid its time and waited to go to the market later this year when investors would have had a clearer picture on the company’s direction.
The undersubscribed offer is already impacting on Transcorp’s share price which has been on a downward spiral since the technical suspension on the company’s shares was lifted twice by the Nigerian Stock Exchange.

A few weeks after the IPO had closed the Stock Exchange lifted the suspension placed on Transcorp’s share which took a hit in four days of trading to fall from N9.71 kobo per share to N8.34 kobo per share.
Without prior notice to stock brokers, the Exchange placed another technical suspension on the shares, which was ostensibly done to stop the free fall. However, the official explanation given by the Exchange for the second suspension was that it had done so to enable the Issuing Houses to the offer conclude collation of returns.
Since trading resumed last week, Transcorp’s shares slumped again, closing in at N7.93 kobo a share by end of trading last Thursday.

@pain

Thats what happens to things done with poor thinking!! I am not surpised.

More to call as OBJ fake reforms start collapsing from May 29.

With all the negative news and 75 million odd share waiting to be dumped as at Tuesday's trading day, only 947,316 shares exchanged hands leaving the stock to close at N7.54.

Miraculously (if such a thing exists in the stock market), the stock has closed at N9.71 after trading 3,011,808 shares. Today's low/high price was the same N9.71 how miraculous can this be for Transcorp Something does not add up. Dare I suggest insider trading? And all this in 69 trades only!

Let's see where all this is leading to

Listen: Ladies and Gentlemen, if you want to be mega-rich, just buy some shares in TRANSCORP now before it is too late!!! who knows OBJ may assume it's chairmanship post handover.
By the way, the price of transcorp has been adjusted back to #9.71. GOODLUCK

For the Transcorp Haters (TH), here is more ammo for you. . . Cheers!

Transcorp sacks Longe

Friday Ekeoba, Lagos - 12.04.2007

THE Managing Director Transnational Corporation of Nigeria Plc (TransCorp) , Mr. Bernard Longe, may have been relieved of his position following complaint arising from his alleged ignoble exit from First Bank of Nigeria Plc.

To this end, the management of Transcorp has directed him (Longe) to proceed on compulsory leave.

The board of TransCorp which confirmed the new development in a statement made available to the Nigerian Tribune yesterday and signed by the company’s Head of Communication, Mr. Adedayo Ojo, said they took the decision to enable the board committee to fully investigate the circumstances in which Mr. Longe left First Bank of Nigeria Plc.

He added that the goal of the inquiry was to ensure that Transcorp was in compliance with the Nigerian Stock Exchange (NSE) directive that indicted and/or dismissed chief executive officers of quoted companies would no longer be allowed to occupy executive level positions in publicly quoted companies.

Longe was sacked as Managing Director of First Bank some years back ,a decision which was upheld by the Appeal Court in Lagos owning to alleged misleading and failure of the bank to acquire NITEL.

I wonder how your MD being bad and in need to be fired being a positive for any company!

i saw this coming and some forumites were shouting crucify him for saying that Transcorp might not be a success

all this gbese wey dey happen to transcorp. I bought the offer at ipo but yet to receive my certificate. I don't know if I'm alone on this mess.

Iyke-D:

The board of TransCorp which confirmed the new development in a statement made available to the Nigerian Tribune yesterday and signed by the company’s Head of Communication, Mr. Adedayo Ojo, said they took the decision to enable the board committee to fully investigate the circumstances in which Mr. Longe left First Bank of Nigeria Plc.

The circumstances under which Mr Adedayo Ojo left his previous employer (ExxonMobil) is that he was fired for misuse of company property. That company is a bevy of thieves. Do not invest!

If that is true then it is really sad

shall we pray!

kanugab:

all this gbese wey dey happen to transcorp. I bought the offer at ipo but yet to receive my certificate. I don't know if I'm alone on this mess.

i feel you, man !!!

let us look at it these way, the have bought ph refinery,nicon hilton hotel ,nitel, oil well and will still buy more. if all the asset the bought failures, then the economy of the country is doom.

i don't what to tell my unborn children that i miss the train to financial break through. I am going to swim or sink with transcorp.

Rumour has it that the IPO was over-subscribed and that the technical suspension will soon be lifted. I read this as a comment in stockwatch magazine yesterday.

I think TransCorp will be ok. I suspect they're silently working behind the scenes to get the right investments in, then mop up all excess shares from the market.

blackchief:

let us look at it these way, the have bought ph refinery,nicon hilton hotel ,nitel, oil well and will still buy more. if all the asset the bought failures, then the economy of the country is doom.

i don't what to tell my unborn children that i miss the train to financial break through. I am going to swim or sink with transcorp.

i have 47000units for sell if you are intrested and still want your unborn children not to miss this financial break through,pls cotact me on talk2ugwu@yahoo.com or 08063240578, i will be waiting to hear from you soon
Thanks

have 47000units for sell if you are intrested

How much are you willing to sell your 47,000 units for?