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Transnational Corp. of Nigeria Plc, which invests in hotels, agriculture and energy, rose the most in almost two weeks after it got regulatory approval for a planned rights offer.
The stock jumped 9.7 percent to 1.81 naira as of 1:30 p.m. in Lagos, Nigeria’s commercial capital, the biggest intraday advance since Feb. 13, according to data compiled by Bloomberg. About 50 million shares traded, or 124 percent of the three- month daily average volume.
Transcorp obtained approval to sell 13 billion shares, the company said today in a statement on the website of the Nigerian Stock Exchange. Shareholders will vote on the plan at a meeting on March 28, it said.
“Investors are buying the company’s shares to benefit from the rights issue at a lower price,” David Adonri, chief executive officer of Lambeth Trust and Investment Co., said by phone from Lagos.
Transcorp said on Jan. 30 it signed a deal with General Electric Co. (GE) for equity investment and technical support. GE will invest $1 billion in Nigeria over the next five years by building a manufacturing plant to support power generation and oil production, Chairman Jeffrey Immelt said on Jan. 31.
The stock has advanced 72 percent this year, compared with a 19 percent rise in the Nigerian Stock Exchange All-Share Index. (NGSEINDX)
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