The Nation Newspaper

Category: Equities

  • Court restrains SEC over Oando

    Panicky investors yesterday dumped Oando’s shares at the equities market as the embattled indigenous oil and gas group secured a court order restraining the Securities and Exchange Commission (SEC) from removing its top management executives and directors.

    Oando’s share price declined by 9.52 per cent, few points below the maximum daily allowable price change at the Nigerian Stock Exchange (NSE).

    The company’s share price dropped by 40 kobo to close at N3.80, its lowest price this year. It used to be the third most active stock with a turnover of 27.15 million shares valued at N103.7 million.

    Sources told The Nation that the board and management of the company remain unchanged and Mr. Wale Tinubu and Mr Omamofe Boyo remain as Group Chief Executive Officer and Deputy Group Chief Executive Officer.

    One of the sources said the planned annual general meeting of the company will hold as scheduled on June 11, adding that the company continues to enjoy the confidence of its critical stakeholders.

    SEC had at the weekend released a damning statement on the management and board of Oando, accusing the managers of sundry corporate governance abuses and infractions of capital market laws.

    The regulator barred the Group Chief Executive Officer (GCEO) and the Deputy Group Chief Executive Officer (DGCEO) of Oando from being directors of public companies for five years. SEC also ordered certain members of the board of directors to resign.

    The apex capital market regulator stated that it had concluded investigation into alleged corporate governance abuses at Oando and found that the company was guilty of serious infractions and market abuses.

    SEC also directed the payment of monetary penalties by the company and affected individuals and directors, and refund of improperly disbursed remuneration by the affected board members to the company.

    It also directed the convening of an extra-ordinary general meeting on or before July 1 to appoint new directors.

    These, among others, the SEC stated, are part of measures to address identified violations in the company.

    According to the SEC, following the receipt of two petitions by the Commission in 2017, investigations were conducted into the activities of Oando. Certain infractions were observed. The Commission further engaged Deloitte & Touche to conduct a Forensic Audit of the activities of Oando.

    Read also: Oando saga: Why SEC sent Tinubu packing

    It said: “The general public is hereby notified of the conclusion of the investigations of Oando Plc. The findings from the report revealed serious infractions such as false disclosures, market abuses, misstatements in financial statements, internal control failures, and corporate governance lapses stemming from poor board oversight, irregular approval of directors’ remuneration, unjustified disbursements to directors and management of the company, related party transactions not conducted at arm’s length, amongst others.”

    The commission stated that as required under Section 304 of the Investments and Securities Act (ISA) 2007, it would refer all issues with possible criminality to the appropriate criminal prosecuting authorities.

    It added that other aspects of the findings would be referred to the Nigerian Stock Exchange (NSE), Federal Inland Revenue Service (FIRS), and the Corporate Affairs Commission (CAC).

    At the weekend, SEC named Mr. Mutiu Sunmonu, a former Managing Director of Shell, as head of an interim management team to oversee the affairs of Oando and to conduct an extra ordinary general meeting on or before July 1 to appoint new directors to the board of the company, who would subsequently select a management team for Oando.

    Oando, however, described the SEC’s directives as a calculated attempt to prejudice the business of the company.

    In a statement signed by the Company Secretary, Ayotola Jagun and Head of Corporate Communications, Alero Balogun, the company stated that the alleged infractions and penalties were unsubstantiated, ultra vires, invalid and calculated to prejudice its business.

    According to the company, it has not been given the opportunity to see, review and respond to the forensic audit report and so unable to ascertain what findings were made in relation to the alleged infractions and defend itself before the SEC.

    “The company reserves its rights to take all legal steps to protect its business and assets whilst remaining committed to act in the best interests of all its shareholders,” Oando stated.

     

  • Internal squabble rocks SEC over Gwarzo’s reinstatement order

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has been gripped by internal squabble over the recent decision of the National Industrial Court of Nigeria (NICN) reinstating suspended Director General, Mounir Gwarzo.

    A group under the Association of Senior Civil Servants of Nigeria, SEC branch, yesterday held a protest at the office premises of the Commission over the reinstatement of the suspended Director-General of the Commission, Mounir Gwarzo.

    Some staff of SEC, who spoke under condition of anonymity, dissociated themselves from the protest describing it as a flagrant abuse of due process and attempt to tarnish the image of the Commission.

    The National Industrial Court of Nigeria (NICN) had last Thursday ordered the reinstatement of Mounir Gwarzo, with all his salaries and allowances paid to him. In his ruling, Justice Sanusi Kado held that the Minister of Finance, who had suspended Gwarzo, lacked the power to suspend him even as the court dismissed three issues raised by defence counsel through their preliminary objection, ruling that the suit was not statute barred.

    Former Minister of Finance, Mrs Kemi Adeosun, had on November 29, 2017, suspended Gwarzo in a controversial circumstance. Adeosun had hinged her decision on allegations of allegations of financial impropriety levelled against Gwarzo but Gwarzo had protested that he was suspended to cover up investigation into corporate governance abuses involving a leading oil and gas company.

    Justice Kado said the Minister of Finance did not have the power to suspend the Gwarzo because he was not an employee of SEC.

    The judge noted that in the absence of a board, the Minister of Finance only has supervisory power, which does not include disciplinary power to suspend the DG.

    Justice Kado said it was only the Permanent Secretary in the Ministry of Finance, on the directive of the President that has the power of suspension. He said the Minister’s role was that of recommendation.

    It should be recalled that Justice Hussein Baba-Yusuf of the High Court of the Federal Capital Territory (FCT), had on April 16, 2019, discharged and acquitted Gwarzo on a criminal charge brought against him by the Independent Corrupt Practices and other related offences Commission (ICPC) in relation to charges of financial misappropriation.

    Gwarzo was, among others accused of collecting severance package worth N104.85 million while still in service in violation of the Civil Service rules.

  • Wema Bank: Growing profitability

    Wema Bank, Nigeria’s oldest surviving indigenous bank, shows steady improvements in profitability as the commercial bank leverages heritage and technologies to deepen customer base and reduce risks

    Wema Bank recorded strong growths in the top-line and bottom-line in the first quarter, sustaining a trend that has seen the commercial bank within the league of fastest growing banks.

    The interim report and accounts for the first quarter ended March 31, 2019 showed that the core income base, interest income, rose by 27.2 per cent while profit grew by 50 per cent. This year’s first quarter results built on the positive performance in 2018 when full-year profit after taxes jumped by 47.3 per cent. With the bottom-line steadily growing, the confident board and management of the bank distributed N1.157 billion to shareholders as cash dividends for the 2018 business year, its first dividend payout in 14 years.

     

    Fundamentals

    The three-month report ended March 31, 2019 indicated a strong start for the bank. Interest income rose by 27.2 per cent from N12.64 billion in first quarter 2018 to N16.07 billion in first quarter 2019. Profit before tax jumped by 50.6 per cent from N883.95 million to N1.33 billion. After taxes, net profit rose from N764.7 million in first quarter 2018 to N1.14 billion in first quarter 2019. Earnings per share thus increased from 6.8 kobo to 12.4 kobo.

    The first quarter performance reinforced board and management’s commitment to shareholders that the bank is on a steady growth curve that will deliver increasing returns to investors.

    At the Annual General Meeting (AGM) in Lagos, visibly elated shareholders unanimously approved the distribution of N1.157 billion as cash dividend for the 2018 business year, representing a dividend per share of 3 kobo. The dividend payout represents about 35 per cent of the net profit for the year.

    The audited report and accounts for the year ended December 31, 2018 showed that Wema Bank’s gross earnings rose by 9.56 per cent to N71.5 billion in 2018 as against N65.3 billion in 2017. The report showed appreciable improvements across the income lines of the bank.

    Interest income had risen by 8.6 per cent from N53.1 billion to N57.6 billion. Net fee and commission increased to N6.5 billion from N5.6 billion. Net trading income also rose to N5.5 billion from N4.8 billion while the other income appreciated to N1.8 billion from N1.6 billion. Profit before tax rose by 59.4 per cent to N4.8 billion in 2018 as against N3.01 billion in 2017.

    Profit after tax rose by 47.5 per cent to N3.33 billion as against N2.26 billion. Earnings per share consequently rose by 48.3 per cent to 8.60 kobo in 2018 compared with 5.80 kobo in 2017.

    The balance sheet of the bank also improved with more customers opting for the bank. Total assets rose to N488.8 billion in 2018 as against N387.6 billion in 2017. Total liabilities had risen from N337.9 billion to N437.9 billion. Customers deposit rose from N254.46 billion to N369.2 billion. Shareholders’ fund improved from N49.62 billion in 2017 to N50.89 billion in 2018.

     

    Restructured for growth

    Wema Bank had in 2009 launched a comprehensive restructuring exercise that touched all key aspects of the bank including corporate brand and ambience, capital base, capital restructuring, risk management, stakeholders’ engagement, products and services, banking application and technologies, human resources and strategic goal direction of the bank. With stronger capital base and additional investments in technologies, the bank in 2017 launched Nigeria’s first fully digital bank, ALAT, a game-changing product that has positioned Wema Bank in the competitive end of convenience banking in Nigeria. ALAT has since continued to record significant milestones, especially around customer acquisition.

    In 2018, Wema Bank won the World Finance Awards for Most Innovative Bank Africa and the Asian Banker Awards for the Best Digital Bank Africa. It had in 2017 won the BusinessDay Banking Award for The Digital Banking Platform of the Year, TUSH Awards for Most Youth-Friendly Brand, Infosys’ Finacle Client Innovation Award, World Finance Award for Best Mobile Banking App.

    The bank has also continued to widen its operational and technology base in line with its four focus areas of innovation and technology, relationships, risk management and national footprint.

    Established in 1945, Wema Bank is running on both its heritage and its cutting-edge technologies, two major planks that reassure on the future prospects of the bank.

    Wema Bank Plc Managing Director, Mr Ademola Adebise said the bank plans to make ALAT the premier digital platform in Nigeria.

    “For us, we want to be an idea bank. We want to be known for innovation and we want to be very agile. For you to make a mark in this space, you need to be very agile and speak to market with products that appeal to customers. It is not about developing products, it is about appealing to the needs of the customers,” Adebise said.

    Wema Bank Chairman Mr Babatunde Kasali said the banks have been delivering on its strategic goals by taking bold steps that not only reinforces confidence in its immediate future but long-term growth prospects.

    According to him, the results of the bank in recent period have justified the success of the bank’s turnaround programme as the bank continues to record significant achievements in various areas.

    He noted that the bank has been able to maintain its non-performing loan ratio below the regulatory limit of five per cent while simultaneously growing its business.

    He said the bank’s aim is to consistently scale up and improve market share through various initiatives pointing out that the success of these many initiatives have not only positioned the bank as a choice of customers but also investors, as shown in the growing customer base and the success of its capital raising efforts. Wema Bank raised tier 11 capital in 2018 and plans to raise additional capital in the months ahead.

     

    Looking forward

    “As we go into 2019, we will deepen our focus on the commercial and corporate business while we introduce a renewed focus on our retail business. The above will help to continue to reinforce our commitment towards balance sheet optimisation, efficient processes and operations as well as value creation for our esteemed customers and shareholders,” Kasali said.

    He assured that despite the envisaged challenges in the banking sector and the general macroeconomic environment, the bank will look beyond the clouds to find opportunities for accelerated growth, especially around the sectors and industries which are enjoying growth, including agriculture and manufacturing.

    According to him, significant steps had been taken internally in 2018 to ensure that the bank delivers value to shareholders in 2019.

    “Another of our core commitment in 2019 is to continue to use our technological edge to drive disruption to deliver on our goals for the year. Wema Bank is well positioned to ride the growth curve and deliver even better performance in 2019,” Kasali assured.

    Adebise said the bank will continue to explore opportunities to bring banking services to the nook and crannies of the country through branch network expansion and digital banking.

    Speaking against the background of the opening of the bank’s branch in Ilorin, Adebise said the bank planned to launch new branches in Gombe, Onitsha and other leading cities in Nigeria.

    “We are excited to open a new branch which will help us as a bank meet the growing demand for financial products and services by the residents of Ilorin. For us, it is not about just opening branches, we are targeting communities where there are opportunities,” Adebise said. With its new national status, the bank has reopened branches in the North and South East, including in Kano, Kaduna, Bauchi, Minna, Lokoja and Aba.

    Shareholders appeared to agree with the board and management of the bank on the future outlook. Wema Bank’s share price is one of the three stocks with positive year-to-date returns in the banking sector. With the benchmark index for the equities market indicating a five-month average year-to-date return of -1.15 per cent, Wema Bank’s modest positive return of 1.59 per cent showed resilience and resistance to the selloffs that characterised the equities market during the period.

    The contrarian value of Wema Bank is further highlighted by the steep declines suffered by other stocks. The NSE Banking Index, which tracks banking stocks, closed weekend with a five-month average return of -9.37 per cent while the NSE Main Board Index, where Wema Bank and most other quoted companies, about 80 per cent of quoted companies, are listed closed weekend with average year-to-date return of -11.96 per cent.

    Most analysts said they expected Wema Bank to increase dividend payouts as profit increases, a major appeal to the vast majority of retail investors that have for decades trusted the bank as a store of value. With improving operations, stronger fundamentals and resilience share price, Wema Bank appears to be winning on all fronts.

  • SEC bars Oando Group CEO, deputy for five years

    The Securities and Exchange Commission (SEC) has barred the Group Chief Executive Officer (GCEO) of Oando Plc, Wale Tinubu, and his deputy, Omamofe Boyo, from being directors of public companies for a period of five years.

    The nation’s apex capital market regulator also ordered the resignation of some members of the company’s board of directors.

    But in a swift reaction on Friday, Oando described the directives from SEC as a calculated attempt to prejudice the business of the company, threatening legal action against the regulatory body

    In a statement it released yesterday, SEC said it had concluded investigation into alleged corporate governance abuses at Oando and found that the company was guilty of serious infractions and market abuses.

    SEC also directed the payment of monetary penalties by the company and affected individuals and directors, and refund of improperly disbursed remuneration by the affected board members to the company.

    SEC also directed the convening of an extraordinary general meeting on or before July 1, 2019, to appoint new directors.

    These, among others, SEC stated, were part of measures aimed at addressing identified violations in the company.

    According to SEC, following the receipt of two petitions by the Commission in 2017, investigations were conducted into the activities of Oando and certain infractions of relevant laws were observed.

    The Commission further engaged Deloitte & Touche to conduct a forensic audit of the activities of Oando.

    Read Also: Oando to challenge SEC’s ruling on forensic audit

    “The general public is hereby notified of the conclusion of the investigations of Oando Plc. The findings from the report revealed serious infractions such as false disclosures, market abuses, misstatements in financial statements, internal control failures, and corporate governance lapses stemming from poor board oversight, irregular approval of directors’ remuneration, unjustified disbursements to directors and management of the company, related party transactions not conducted at arm’s length, amongst others,” SEC stated.

    The Commission stated that as required under Section 304 of the Investments and Securities Act (ISA) 2007, it would refer all issues with possible criminality to the appropriate criminal prosecuting authorities.

    The Commission added that other aspects of the findings would be referred to the Nigerian Stock Exchange (NSE), Federal Inland Revenue Service (FIRS) and the Corporate Affairs Commission (CAC).

    “The Commission is confident that with the implementation of the above directives and introduction of some remedial measures, such unwholesome practices by public companies would be significantly reduced.

    “Therefore, in line with the Federal Government’s resolve to build strong institutions, boards of public companies are enjoined to properly perform their fiduciary duties as required under extant securities laws,” SEC stated.

    SEC’s directives meant to prejudice our business, says Oando

    In a statement Friday, Oando Plc described the directives from the SEC as a calculated attempt to prejudice the business of the company.

    Signed by the Company Secretary, Ayotola Jagun and Head of Corporate Communications, Alero Balogun, the statement said the alleged infractions and penalties are unsubstantiated, ultra vires, invalid and calculated to prejudice the business of the company.

    According to the oil company, it has not been given the opportunity to see, review and respond to the forensic audit report and so was unable to ascertain what findings were made in relation to the alleged infractions and defend itself accordingly before the SEC.

    “The company reserves its rights to take all legal steps to protect its business and assets whilst remaining committed to act in the best interests of all its shareholders,” Oando stated.

     

  • May & Baker Nigeria to drive growth with new investments

    May & Baker Nigeria Plc has in recent months made substantial investments that will drive growth and create better returns for shareholders.

    Addressing shareholders yesterday at the annual general meeting in Lagos, Chairman, May & Baker Nigeria Plc, Lt. Gen. Theophilus Danjuma (rtd) said the company has committed N541.3 million to construct a dedicated plant for one of its major products while the company also invested additional N437.2 million in Biovaccines Nigeria Limited, its joint venture with the Federal Government.

    May & Baker Nigeria holds the majority equity stake of 51 per cent while the government holds 49 per cent equity stake in Biovaccines Nigeria Limited, the company set up for the purpose of May and Baker Nigeria-government partnership.

    The Federal Executive Council had at its sitting on May 31, 2017 ratified a joint venture agreement (JVA) between the Federal Government and May & Baker for the formation of a private company, Biovaccines Nigeria Limited to serve as a special purpose vehicle for the production of vaccines in Nigeria.

    Danjuma said the company has invested additional capital of N1.86 billion raised recently in a right issue in its business to create enhanced opportunities for sustained growth.

    “Shareholders should expect improved results from the business this year and beyond,” Danjuma said.

    He noted that despite the discontinuation of some key products due to industry-wide regulatory directives and sale of its noodles business, the company has continued to grow its revenue through aggressive new product introductions and promotion of existing products.

    According to him, as part of new strategic initiatives, the company is investing in key therapeutic areas such as sickle cell anemia and a number of new pharma, nutraceutical and herbal products.

    Read also:

    He pointed out that the company had signed four memorandum of understanding with the Federal Ministries of Health and Science and Technology to produce and commercialise a sickle cell drug and nutraceutical products developed by the National Institute for Pharmaceutical Research and Development (NIPRD) and the Federal Institute of Industrial Research, Oshodi (FIIRO).

    “The investment attraction of our company lies in the future as we continue to drive our growth and expansion strategies. Our strategic investments and growth initiatives in our core competence area, healthcare, will boost returns in the years ahead. I encourage you to maintain faith and optimism in the prospects of our company,” Danjuma said.

    Managing Director, May & Baker Nigeria Plc, Mr Nnamdi Okafor, assured shareholders that the management of the company remains committed to sustaining the company’s growth.

    He said the continuing improvement in the underlying fundamentals of the company underscored the success of management’s tight cost control measures.

    Shareholders commended the company for sustaining growth. Shareholders unanimously approved the payment of N345.05 million as cash dividend for the 2018 business year. The total dividend payout represented 76.05 per cent increase on N196 million paid for the 2017 business year. Shareholders would receive a dividend per share of 20 kobo for the 2018 business year. The company had increased total dividend payout from N58.8 million for 2016 business year to N196 million for 2017 and N345 million for 2018 business years.

    Founder, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu said the performance of May & Baker Nigeria has shown that it is a reliable company.

    Key extracts of the audited report and accounts of May & Baker Nigeria for the year ended December 31, 2018 released at the NSE showed a steady growth of 6.08 per cent in total turnover from N8.06 billion in 2017 to N8.55 billion in 2018. Profit before tax stood at N817.91 million while profit after tax from continuing operations was N342.7 million. With N242.5 million extra ordinary income from discontinued operations, the company made a comprehensive income of N585.20 million in 2018 compared to N336.62 million in 2017.

    Shareholders’ funds also rose by about 10 per cent from N3.29 billion in 2017 to N3.617 billion in 2018. At the same time, finance costs reduced by 33.67 per cent from N512.13 million in 2017 to N339.72 million in 2018.

     

     

  • Court orders reinstatement of suspended SEC DG, Gwarzo

    he National Industrial Court of Nigeria (NICN) in Abuja has ordered the immediate reinstatement of the suspended Director General (DG) of the Securities and Exchange Commission (SEC), Mr. Mounir Gwarzo.

    Justice Sanusi Kado, in his judgment yesterday, held that the Minister of finance, named as second defendant in the suit, lacked the power to suspend the claimant.

    Justice Kado, who rejected the preliminary objection filed against Gwarzo’s suit, held that the suit was not status barred, as argued by the defendants.

    The judge noted that the issue in dispute was not about Gwarzo’s position as SEC’s DG, but that the issue was about the person with the power to suspend him.

    Former Minister of Finance, Mrs Kemi Adeosun, had on November 29, 2017, suspended Gwarzo in a controversial circumstance. Adeosun had hinged her decision on allegations of allegations of financial impropriety levelled against Gwarzo but Gwarzo had protested that he was suspended to cover up investigation into corporate governance abuses involving a leading oil and gas company.

    Justice Kado said the Minister of Finance did not have the power to suspend the Gwarzo because he was not an employee of SEC.

    The judge noted that in the absence of a board, the Minister of Finance only has supervisory power, which does not include disciplinary power to suspend the DG.

    Justice Kado said it was only the Permanent Secretary in the Ministry of Finance, on the directive of the President that has the power of suspension.

    He said the Minister’s role was that of recommendation.

    Read also: Gwarzo awarded N33m contracts in SEC to personal companies – Reports

    The judge agreed with Gwarzo’s lawyer, Abdulhakeem Mustapha (SN) that the Administrative Panel of Inquiry that indicted the Gwarzo was neither a court of law nor  a quasi-judicial body, but established for a fact-finding duty.

    Justice Kado consequently declared that Gwarzo’s suspension was null, void and of no effect.

    The judge set aside the recommendation of the Administrative Panel of Inquiry set up by the second defendant (the Minister of Finance).

    Justice Kado proceeded to order that Gwarzo be reinstated as the DG of SEC to complete his five-year tenure.

    The judge equally ordered that all salaries, allowances and entitlements accrued to Gwarzo should be paid to him in full.

    It should be recalled that Justice Hussein Baba-Yusuf of the High Court of the Federal Capital Territory (FCT), had on April 16, 2019, discharged and acquitted Gwarzo on a criminal charge brought against him by the Independent Corrupt Practices and other related offences Commission (ICPC) in relation to charges of financial misappropriation.

    Gwarzo was, among others accused of collecting severance package worth N104.85 million while still in service in violation of the Civil Service rules.

    Meanwhile, there are insinuations that the Independent Corrupt Practices and Other Related Offences Commission (ICPC), might be considering preparing fresh charges against Gwarzo.

    A staff of the SEC said that officials of ICPC came to SEC looking for additional evidence against Gwarzo.

    Another official of the Commission said the Attorney General of the Federation (AGF) could appeal the judgement of the NICN reinstating Gwarzo.

    Capital market operators, who spoke on condition of anonymity because of the sensitivity of the issue, said the court judgements have vindicated the suspended DG, adding that these would positively impact on the perception of the Nigerian capital market.

     

  • Berger Paints restructures for growth

    Berger Paints Nigeria Plc has started implementation of many strategic initiatives aimed at enhancing the operations and processes of the company and positioning it for long-term sustainable growth.

    The board of the company laid out its plan for sustained value creation to shareholders at the annual general meeting in Lagos. The board outlined that the strategic initiatives, which cover many areas of the company including structure, people, processes and digital operations, were derived from a detailed evaluation of the company and its future competitiveness.

    Addressing shareholders at the meeting in Lagos, Chairman, Berger Nigeria Plc, Mr Abi Ayida, said the new strategic initiatives were arrived at after due consultations and meetings with the various units of the company and relevant stakeholders.

    According to him, the evaluation process underlined the imperative for the company to reposition for global competitiveness and sustainable increase on return on investment (RoI).

    “On assumption of office, I solicited views on how this required journey could be made, and attained unvarnished narrative of what we as employees, partners, stakeholders and leaders were doing well and what not so well. The outcome of these valuable sessions, after board review and consideration, confirmed that there was significant headroom for improvement in our people, processes and organisational structure,” Ayida said.

    He pointed out that in order to put the company on the path of sustained profitability; the board had created the office of Chief Operating Officer to drive the operations and technical aspects of the business while Mr Anjar Sircar was appointed the new Managing Director to take charge of strategic business development decisions and marketing function of the company.

    Until his appointment, Sircar was the Chief Executive Officer of the Elite Group of Companies, Bangladesh. Sircar, an astute professional, who has wide and varied industry experience internationally, was a member of the Executive Committee of Nepal India Chamber of Commerce and Industries (NUCCI) and India Nepal Business Forum.

    Ayida said the key anchors for the corporate restructuring were a clear and integrated customer-focused global strategy, an innovative business model, organisation restructuring for resilience, sustainability and perpetuity, and retooled human capital and talent management.

    He reiterated the company’s commitment towards value creation and assured shareholders of more opportunities for robust engagement with the stakeholders.

    According to him, a help desk has been put in place to reinforce secretariat’s communication with the shareholders.

    He assured shareholders that the company’s ultra-modern plant would be commissioned soon.

    At the meeting, shareholders approved the payment of N188.39 million as cash dividend for the 2018 business year, representing a dividend per share of 65 kobo. Key extracts of the audited report and accounts of the company for the year ended December 31, 2018 showed that turnover grew by 12 per cent to N3.38 billion in 2018 as against N3.01 billion in 2017. Profit before tax rose by 33.8 per cent from N339.5 million in 2017 to N454.3 million in 2018.

    Shareholders commended the board and management of the company for the improvements in all performance indicators in 2018.

    A shareholder, Mr Lawrence Oguntoye urged the company to sustain its outstanding performance. Oguntoye however decried the effect of multiple taxations on manufacturers in Nigeria.

  • GTI Securities launches investors’ assistance product

    GTI Securities Limited has launched an investment management product that will help investors resolve all issues relating to effective management, transfer and recovery of their principal investments and returns.

    The investors’ assistance product, known as GTI Trace, seeks to assist all investors including individuals, companies, cooperative societies, government institutions, associations and other groups to resolve any issue relating to their investment.

    According to the firm, GTI Trace is designed to unlock on behalf of investors the value of outstanding and unclaimed entitlements on their investments including shares and dividends.

    GTI Trace ensures recovery of outstanding dividends and payment of new dividends up to date, merger of multiple stock accounts into one whether in one or different stockbroking houses, tracing missing share certificates, recovery of bonus shares, professional portfolio realignment and management and recovery of shares of a deceased among others.

    Besides, investors can also take advantage of the products to dematerialize existing paper share certificates into the electronic account at the Central Securities Clearing System (CSCS) Plc and also recover their shares trapped in inactive, suspended or dead stockbroking firms.

    “We will be leveraging on our expertise and network to promptly reconcile outstanding benefits against actual entitlements received,” GTI Securities stated.

    GTI Securities is a member of the GTI Capital Group-a leading financial services group that owns the largest private trading floor in sub Saharan Africa (SSA).

  • Flour Mills, Mixta Real Estate float N15b CPs

    Flour Mills of Nigeria Plc and Mixta Real Estate Plc have opened application lists to raise about N15 billion in new short-term capital through the issuance of commercial papers (CPs).

    Flour Mills of Nigeria, is seeking to raise up to N12 billion in the eigth series of its N100 billion CP programme. The flour-milling company will use the net proceeds to support its short-term funding.

    Flour Mills of Nigeria is offering 270-day CP with effective yield of 13.10 per cent and a discount rate of 11.9427 per cent. Application list for the offer closes tomorrow. Minimum subscription is N5 million and thereafter in multiples of N1,000. The CPs will be issued on Thursday May 30, 2019.

    Mixta Real Estate, a subsidiary of Mixta Africa, is seeking to raise N3 billion in the sixth and seventh series of its N15 billion CP issuance programme. The real estate firm will use the proceeds to also fund its short-term capital requirements.

    The sixth series CP is a 180-day instrument with effective and discount yield of 14.67 per cent and 13.6803 per cent respectively. The seventh series CP is a longer tenor 266-day CP with effective and discount yield of 15.36 per cent and 13.8137 per cent respectively.

    Mixta’s offers opened on May 23, 2019 and are scheduled to close today, Monday May 27, 2019. The CPs will be allotted tomorrow while issuance will be done on May 30, 2019. Minimum subscription is N5 million and thereafter in multiples of N1,000.

    Mixta commenced operations in February 2006 as a real estate investment fund management company promoted by Asset & Resource Management Company (ARM) Limited. In 2007, the fund was converted to a property company, ARM Properties Plc, as a result of operational and tax limitations encountered due to current legislation governing real estate investment funds in Nigeria.

    In 2015, ARM acquired Mixta Africa, an Africa-focused large scale property development company headquartered in Spain with subsidiary operations in several countries across North and sub-Saharan Africa. The combination of ARM Properties and Mixta Africa gave birth to Mixta Real Estate Plc.

  • MTN Nigeria loses N183b in first price dip

    MTN Nigeria Communications Plc suffered its first share price depreciation at the weekend, ending a six-day consecutive price rally since the listing of the largest telco on the Nigerian Stock Exchange (NSE).

    MTN Nigeria had on  May 16, 2019 listed its entire issued share capital on the NSE by way of introduction. MTN Nigeria listed 20.35 billion ordinary shares at N90 per share to emerge the second most capitalised company at the Nigerian stock market. The listing was greeted with spontaneous rally, with the telco rising by the market’s 10 per cent maximum daily allowable price change for five of its six positive trading sessions.

    After six consecutive trading sessions that saw the telco rallying N1.20 trillion in capital gains, MTN Nigeria at the weekend recorded its first price loss, dropping by N9 from its high of N149 to close weekend at N140 per share. MTN Nigeria’s market value dropped from its opening value of N3.03 trillion, its highest, to close weekend at N2.849 trillion, representing a loss of 6.04 per cent or N183 billion. MTN Nigeria had entered the stock market with entry listing value of N1.83 trillion.

    The price decline came on the heels of increased supply of MTN Nigeria’s shares as more and more minority retail shareholders and bargain-hunters acquired shares from pre-listing shareholders of the telco. MTN Nigeria was the most active stock at the Exchange last week and it accounted for about one-fifth of total turnover at the equities market. It traded 290.1 million shares within the five-day trading week.

    Market analysts said they expected a more efficient pricing equilibrium for the telco in the weeks ahead citing the steep decline in volume of bids and open market orders and increasing negotiating power on the buyers’ side. MTN Nigeria had rode on the crest of open market orders for five days, with most investors willing to buy with as much as the highest price. As such, the divesting investors automatically set their price at the top-end of the price limit.

    Many analysts believe MTN Nigeria might take advantage of its bullish start to launch an initial public offering (IPO), a campaign that will widen the shareholders’ base of the telco.

    Astonished by the daily jump in share price and the inability to get the shares of the company, many Nigerians had expressed concerns on the propriety and fairness of the telco’s pricing trend. The NSE subsequently allayed fears over the pricing trend, explaining the technicalities of price discovery under a listing by introduction as against a post-IPO listing, which most minority retail investors are familiar with.

    On the initial paucity of shares, the NSE explained that the seeming scarcity of the telco’s shares was due to the peculiarity of a listing by introduction, insisting that MTN Nigeria met all listing requirements, including minimum free float for its listing on the premium board.

    According to the Exchange, where a company lists following an IPO, shares are expected to be available for trading on the day of listing. However, in a listing by introduction, no shares have been offered for subscription by the company prior