Tranex Plc doubles share capital to N498.15m amid strategic expansion plans
By Esther Agbo
Shareholders of Trans-Nationwide Express (Tranex) Plc have sanctioned an increase in the company’s share capital from N249,075,038.50 million to N498,150,077.00 million. This decision was made during the company’s 31st Annual General Meeting in Lagos.
The capital boost will be achieved by creating an additional 498.15 million ordinary shares, each valued at N0.50, maintaining parity with existing shares.
With the approval, and pending necessary statutory clearances, the Directors have been authorised to issue these new shares through a rights issue to current shareholders.
They are also empowered to negotiate and finalise all essential transaction documents for this issuance.
The official statement read, “That the Share Capital of the company be and is hereby increased from N249,075,038.50 to N498,150,077.00 by the creation of additional 498,150,077 ordinary shares of N0.50 each ranking pari-passu in all respects with the existing ordinary shares of the Company.
“That following the approval of the increase in the Company’s share capital and subject to the Company obtaining all required statutory approvals, the Directors be and are hereby empowered to issue the newly created ordinary shares of 498,150,077 (four hundred and ninety-eight million, one hundred and fifty thousand, seventy-seven) through a Rights issue to existing shareholders.”
Additionally, shareholders passed resolutions authorising the Directors to manage all necessary documents and steps related to the share issuance, subject to regulatory approvals.
The increase in share capital also necessitated the addition of a new Object Clause 6, reflecting the revised share capital structure.
After the execution of the Transaction Agreements, the Board of Directors of the Company is hereby authorised to allot and issue the relevant shares to existing shareholders and take all necessary actions related to this, subject to the approval of the regulatory authorities.
Following the increase in the Company’s Share Capital, a new Object Clause 6 is added as follows: the share capital of the Company is N498,150,077.00 (four hundred and ninety-eight million, one hundred and fifty thousand, seventy-seven naira) divided into 996,300,154 (nine hundred and ninety-six million, three hundred thousand, one hundred and fifty-four) ordinary shares of N0.50 each.
Important to note, Tranex is a logistics solutions provider. The company’s 2023 financial results showed a 25 percent drop in revenue from N698.63 million in 2022 to N527.26 million in 2023.
Direct operation costs decreased by 19 percent from N508.35 million in 2022 to N410.60 million in 2023. Profit before tax fell by 13 percent to N37.67 million, and profit after tax declined by 36 percent to N16.03 million in 2023.
