Since the decision of the Nigerian Central Bank to raise the minimum capital required for banks in 2004, local companies in search of capital have realized that a fierce competition for capital exists. Just as important, they have also realized that if they have a compelling story for the financial community, the capital exists locally to fund projects and companies.

TransCorp would like investors to understand not only our business model, but our unique value proposition. In an environment characterized by stiff competition for capital, TransCorp intends to successfully communicate to shareholders and potential investors why it should remain the first choice and sensible destination for their funds.

TransCorp is a holding company with significant interests in different sectors of the Nigerian economy. Currently, TransCorphave holdings in the following business areas: oil (deep off shore), hospitality (hotel), and telecommunications (telephone company). The group has made important investments in these areas and it is aggressively pursuing entry and growth in other areas.

The TransCorp Hexagon Value Proposition is illustrated below:

The hexagon value proposition means greater value for our investors because:

1)    As TransCorp controls significant stakes in entities or ventures in which we are invested, we are in a much better position to monitor management than a single individual retail investor or a small group of investors. Typically, our investment in our portfolio companies exceeds a hundred million dollars and earns us representation on both the board and executive management. Thus, we are better able to align Board and management goals with those of our shareholders

2)   TransCorp will create value by granting fee-based services to our portfolio companies, such as HR services, project management services, logistics services, technology & consulting services, etc. By performing these services for our different portfolio companies, we not attain economies of scale and thus lower costs, we also guarantee that the quality of services is uniform across all TransCorp companies

3)   TransCorp provides an optimal sectoral diversified portfolio to our investors. Based on a representative basket of shares of companies in sectors in which we operate, an investor would need to spend at least N500 to hold a diversified portfolio, excluding the transaction costs of buying these shares and managing holdings in such a diversified portfolio. We are optimally spread between high growth (excellent capital gains opportunities) and mature sectors (stable and predictable cash flows) in the economy

4)   As a result of its diverse interests and multiple cash inflows, TransCorp carries lower risk and thus, can take on cheaper, therefore, more debt to fund our expansion and growth. Since TransCorp is organized as a holding company, its risk-taking is limited to the amount of investment made in its portfolio companies

5)   Our size and the resources at our disposal position us as a strong competitor to multinational corporations. These advantages also make TransCorp a credible and preferred equity partner of foreign companies seeking to enter the Nigerian market in sectors in which we already operate, and in foreign markets, a partner of choice

6)   TransCorp is working for a better business climate in Nigeria and we believe that our business activities will create many spin-off benefits for the communities in which our portfolio companies operate and in Nigeria at large.