TCN shareholders laud SEC’s intervention, urge fair buyout

Minority shareholders of the Tourist Company of Nigeria (TCN) have commended the Securities and Exchange Commission (SEC) for its decisive intervention in addressing governance challenges that have plagued the company for years.

In a statement on Monday, Olatunde Okelana — a shareholder of Ikeja Hotel Plc and Chairman of the Zonal Shareholders Mobilisation Committee for Annual General Meetings — said the over 4,000 minority shareholders welcomed the SEC’s role in halting spiralling losses and restoring a measure of accountability at TCN.

According to the group, years of family disputes and boardroom wrangling had eroded shareholder value, stalled dividend payments, and left the company in a prolonged operational deadlock. They described the SEC’s regulatory action seven years ago as a turning point that prevented further deterioration of the company’s fortunes.

While acknowledging that the Alex Ibru group now controls over 80% of TCN’s equity, the minority shareholders stressed that the firm remains publicly listed, with close to 5,000 shareholders. They urged the majority owner to make a fair and transparent offer to buy out remaining shareholders and take the company private, in line with SEC directives and best corporate governance practices.

The statement criticised the Alex Ibru group’s approach, alleging disregard for other stakeholders, including Ikeja Hotel Plc and the investing public. The shareholders also flagged a ₦36bn loan owed by TCN to Ikeja Hotel Plc, which they claimed has not been properly disclosed in line with regulatory requirements.

“It is not in dispute that the Alex Ibru group holds a majority shareholding in The Tourist Company of Nigeria Plc,” the statement read. “However, their conduct suggests a belief that majority control allows them to disregard other stakeholders. Regardless of shareholding changes, TCN remains under the full oversight of the Nigerian Exchange Limited and the SEC and must uphold transparency and accountability.”