The Nation Newspaper

Category: Equities

  • Core investor bids to acquire Continental Reinsurance

    CRE African Investments Limited, a majority core investor, has launched a bid to acquire all outstanding and issued shares of Continental Reinsurance Plc.

    In a regulatory filing at the Nigerian Stock Exchange (NSE), the board of Continental Reinsurance stated that it has received an offer from CRe African Investments to acquire all the outstanding and issued shares of Continental Reinsurance.

    Continental Reinsurance’s share price rose by 3.33 per cent to N1.55 per share at the NSE as the announcement filtered into the market on Monday. It rose further by 9.68 per cent to N1.70 per share.

    The acquisition is expected to be executed through a Scheme of Arrangement, under Section 539 of the Companies & Allied Matters Act Cap C20 Laws of the Federation of Nigeria 2004 and other applicable rules and regulations.

    CRe African Investments is offering N2.04 per share for the 10.37 billion ordinary shares of 50 kobo each or one ordinary shares of $1 each in the capital of CRe African Investments for every 176 ordinary shares of 50 kobo each held in Continental Reinsurance.

    The proposed price of N2.04 represents a 46.76 per cent premium to the last traded share price of the company on October 5, 2018, being the last business day prior to the date the proposal was received from CRe African Investments and a 36.0 per cent premium on the trading price as at close of business on November 19, 2018.

    CRe African Investments was said to be making the offer in order to initiate a much-needed restructuring exercise for Continental Reinsurance, with a view to consolidating the reinsurance company’s Nigerian operations and repositioning it for enhanced competitiveness in the global insurance market.

    Already, the company has received preliminary approval of “No Objection” from the Securities & Exchange Commission (SEC). The scheme is however subject to the approval of the shareholders at a court-ordered meeting scheduled for December 20, 2018 in Lagos as well as the sanction of the Federal High Court.

    “Further details will be communicated to the market upon relevant approvals from shareholders and regulators. Shareholders are advised to exercise caution when dealing in Continental Reinsurance’s shares until a further announcement is made,” the company stated.

    Continental Reinsurance was incorporated in 1985 and started business as a private reinsurance company in Nigeria. In January 1987, it began to operate as a general reinsurer and then became a composite reinsurer in January 1990, offering both treaty and facultative life and non-life reinsurance, with a well-diversified business mix and customer base.

    As part of its goal to become a recognized leading reinsurance company in Africa, it converted to a public limited liability company in 2000. After it recapitalized to the tune of N10 billion in 2007, it listed its shares on the NSE in May 2007.

    With five client service centres in Nigeria, Cameroon, Cote d’Ivoire, Kenya and Tunisia with Nigeria as headquarters, it has grown a diversified portfolio across 43 countries.

     

     

  • Diamond Bank launches XclusivePlus

    Diamond Bank has formally introduced its premium lifestyle subscription service, XclusivePlus, for its affluent banking customers.

    Speaking on the product, Head, Consumer Banking, Diamond Bank Plc, Kari Tukur, said the bank has seen a rise in customer spend in the past few years for luxury travel, luxury experiences and luxury products among the emerging affluent client segment.

    She said the new product is well positioned to further enhance customers’ lifestyles and provide them with the most satisfying rewards.

    According to her, XclusivePlus membership comes with an automatic card upgrade to the Diamond Visa signature naira debit card.

    “Diamond Bank is the first bank in Nigeria to go to market with this card. This is a naira card with higher spend limits and enabled for international spend. With this card, our customer will enjoy lots of world class travel and lifestyle benefits such as free access to over 800 Premium airport lounges globally, great discounts and VIP treatment at luxury hotels around the world, free travel insurance cover for them and their family for medical emergencies, lost luggage, flight cancellation and much more anytime they travel. This insurance is also valid for foreign visa applications,” Tukur said.

    She added that there are also benefits closer to home, including free cinema tickets all year around for the movie lovers, free premium events tickets such as concerts, comedy shows and art exhibitions and lots of great offers and discounts from a wide range of merchants across the country ranging from restaurants, bars, hotels, shopping and much more

    XclusivePlus subscribers are also invited to various seminars, conferences and round table discussions covering a wide range of topics such as wealth management & investment, economic outlook, financial planning, assess to finance and lots more.

     

     

  • ASEA elects new executives

    The African Securities Exchanges Association (ASEA) has elected Mr. Karim Hajji, Chief Executive Officer of the Casablanca Stock Exchange, as its new president. Hajji took over from Mr. Oscar Onyema, Chief Executive Officer of Nigerian Stock Exchange (NSE), who had completed two terms of two years.

    ASEA is the association of 28 securities exchanges in Africa with the aim of developing member exchanges and providing a platform for networking. ASEA was established in 1993.

    Other officers constituting the newly formed ASEA executive committee include, Mr. Geoffrey Odundo, CEO of Nairobi Securities Exchange, Ms. Nicky Newton, CEO of Johannesburg Stock Exchange, Mr. Mohammed Farid Saleh, CEO of the Egyptian Exchange, Mr. Thapelo Tsheole, CEO of Botswana Stock Exchange and Mr. Pierre Ekoule, CEO Douala Stock Exchange, Mr. Koffi Yamoah, CEO of the Ghana Stock Exchange and Mr. Pierre Celestin Rwabukumba CEO of the Rwanda Stock Exchange.

    Hajji promised to work with each member of the executive committee to continuously advancing the vision of ASEA while delivering value to the membership.

    He commended Onyema for the good work done in the past four years, assuring that the new executive committee will build on the legacy he has left behind.

    “I believe that through advocacy and strategic lobbying, ASEA will be able to unlock opportunities for the much-needed liquidity in the African financial markets,” Hajji said.

    The new Deputy President, Dr. Edoh Kossi Amenounve, said he would work with the current and new members of the executive committee of ASEA by supporting Hajji in his assignment as President of ASEA.

    Onyema thanked the executives of the association for the support accorded to him during his four years in office.

    “The successes that the Association has enjoyed during my tenure as President would not have been possible without the relentless support of the executive committee members and that of the ASEA Secretariat. Thank you for supporting my vision for the Association.” Onyema said.

    The official opening of the 22nd Annual ASEA Conference kicked off on November 26, 2018 at the Oriental Hotel, in Lagos. The Conference themed; Champions on the Rise; Africas Ascension to a More Sustainable Future” underpins the need for operators of African capital markets to fully embrace sustainable business practices, as well as the opportunities and risks presented by the fourth industrial revolution.

     

  • Jaiz Bank deepens financial inclusion at Kano fair

    Jaiz Bank Plc, the first non-interest bank in Nigeria, plans to deepen financial inclusion at 39th Kano International Trade Fair with its bespoke products and services.

    The bank promised to delight visitors as well as existing customers with value adding products such as agriculture financing, MSMEs financing, home finance in an ethically conforming standard.

    The bank will also present to the public the JaizMobile and also its unique USSD Code (*389*301#) for SMS banking that enables customers do banking transactions without coming to the banking hall.

    Other service that Jaiz Bank will display at the fair is Agency Banking which has the capability of bringing banking services to thousands of individuals seamlessly through our agent network.

     

  • Stock Exchange lauds PEARL Awards

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr  Oscar Onyema has commended the PEARL Awards Nigeria for upholding the standard of the project for 22 years to become a reference point in the capital market.

    Onyema expressed this view when the Board of Governors of PEARL Awards Nigeria paid a courtesy visit to the management of the Exchange in Lagos. The Board of Governors of the Awards was led by Dr Farouk Umar.

    The Board was at the Exchange to brief the Self Regulatory Organisation of arrangements towards the hosting of this year’s PEARL Awards as well as plans by the Awards to go continental in due course.

    “We are proud of the composition of your team and the consistency with which the Awards has been organised in over two decades; and we are particularly happy that it plays the role of an independent arbiter for this sensitive part of the Nigerian financial institution,” Onyema said.

    According to him, the Exchange’s endorsement of the Award is the least level of recognition it can give and the Exchange looks forward to becoming a strategic partner of the PEARL Awards in the nearest future.

    “We are hoping we would be able to sign a Memorandum of Understanding with the Board of the Awards soonest as a way of seeking deeper strategic working relationship that would ensure a stronger Exchange, and also for us to contribute to the vision of PEARL Awards as a respected reward for excellent performance on the Nigerian Stock Exchange,” Onyema said.

    Umar said that the Board appreciated the support of the Exchange expressing readiness to work with the Exchange to strengthen the capital market through the Awards and other innovative initiatives including expanding the frontiers of the Awards to the African continent.

    This year’s PEARL Awards is scheduled to hold at the Eko Hotel and Suites in Lagos on Sunday November 25, 2018. According to the President of the Awards, Mr Tayo Orekoya not less than ninety percent of the companies listed on the secondary market were x-rayed by the Awards technical team before the list of the nominees were released.

    “Our process is a very meticulous process and we have professionals whose duty is to examine these figures from the Nigeria stock Exchange year-in, year-out. The criteria for these processes are open source and that is why the award is well respected,” Orekoya said.

     

  • Majority shareholder increases stake in Ikeja Hotel

    A majority shareholder in Ikeja Hotel Plc-OMA Investments Limited has acquired additional stake in the hotel and leisure company to become the single largest shareholder in the company.

    In a regulatory filing at the Nigerian Stock Exchange (NSE) yesterday, Ikeja Hotel stated that OMA Investments acquired additional 279.10 million ordinary shares of 50 kobo each at N2.05 per share in a deal valued at N572 million.

    With the acquisition, OMA Investments’ total shareholding increased to 25.89 per cent, the single largest shareholding. OMA Investments acquired the shares from UBA Nominees Limited-Trading, which apparently was selling on behalf of another investors.

    Ikeja Hotel, incorporated in 1972 and quoted on the NSE in 2007, controls a chain of hotels directly and through other subsidiaries and affiliates including Tourist Company of Nigeria (TCN) Plc and Capital Hotel Plc. Ikeja Hotel owns Sheraton Hotel, Ikeja, Lagos. TCN owns Federal Palace Hotel while Capital Hotel owns Abuja Sheraton Hotel. The Ibru family owns the single largest individual shareholding.

    The NSE had in May 2018 lifted its one and a half years suspension on trading in the shares of Ikeja Hotel, after the interim board of the company indicated that it has undertaken considerable resolutions of the challenges facing the company.

    The NSE had in November 2016 suspended trading on the shares of Ikeja Hotel Plc in response to the high-stake dispute in the Ibru family. The Ibrus own the majority shareholdings in the hospitality and tourism company.

    In May 2017, SEC had dissolved the board of directors of Ikeja Hotels Plc and ordered a forensic investigation into the affairs of the hospitality and tourism company. The Commission appointed Chief Anthony Idigbe (SAN) as the interim chairman for the company.

     

  • Senate mulls laws to encourage new listings

    The Senate plans to make laws that will encourage listing of companies on the Nigerian stock market.

    Deputy Chairman, Senate Committee on Capital Market, Mr. Foster Ogola said Senate will make laws that will encourage new listings as well as help to revamp the capital market and make it more vibrant.

    Ogola spoke when he led members of Senate Committee on Capital Market on oversight visit to the Securities and Exchange Commission (SEC) in Abuja.

    According to him, the Senate will consider legislation that will improve investments in the capital market by ensuring that the regulator is able to perform its responsibilities efficiently.

    Ogola stated that the Senators were on oversight visit which is done periodically look at what the Commission is doing and see how the Senate can support the SEC in their work.

    “We are here to look at your performances within the year, challenges you encountered and explore ways the Senate can help to make you perform better as the apex regulator of the Nigerian capital market. As the apex regulator of the capital market, we expect inputs from you on ways to deepen the market and make it more vibrant and if there are ways we can assist with relevant legislations we are willing to do so to grow the capital market and ultimately our economy,” Ogola said.

    A member of the Committee, Sen. Mohammed Shaaba Lafiagi expressed the need for more interface between the Senators and the SEC in a bid to look at specific issues and find ways of solving them.

    In her remarks, Acting Director General, Securities and Exchange Commission (SEC), Ms. Mary Uduk commended the Senators on their efforts aimed at ensuring adequate legislation for the capital market.

    Uduk however appealed to the lawmakers to assist in ensuring that government owned companies list on the exchange. This she said will boost investors’ confidence as well as attract investments from foreigners.

    “We have very big government corporations that can be listed and that will give foreigners comfort to list too on the exchange. If this happens, it will be good for our market and also give confidence to investors,” Uduk said.

    She disclosed that the Commission has embarked on a number on initiatives to boost investors’ confidence as well as deepen the market.

    She pointed out that at just concluded Capital Market Committee meeting last week, one of the decisions reached was to give an extension in the deadline for regularization to December 31, 2019. This is in a move to ensure more investors regularize their accounts thereby reducing the volume of unclaimed dividends in the Nigerian capital market.

    Uduk told the Senators that the CMC considered the issue and decided it’s best to give investors more time to regularize their multiple accounts in order to derive the benefits from their investments.

     

  • Equities break into major rally with N60b gain

    Nigerian equities started the week with a strong rally as bargain-hunters sought to lock in positions in large-cap stocks that are trading around their recent lows.

    With 27 gainers to five losers, the overall market situation at the equities market was bullish. The All Share Index (ASI)-the main value-based index that tracks prices of all quoted equities, appreciated by 0.51 per cent to close at 32,222.24 points as against its opening index of 32,058.28 points.

    Aggregate market value of all quoted equities also rose correspondingly from its opening value of N11.704 trillion to close at N11.764 trillion, representing an increase of N60 billion. The average year-to-date return, though still negative, improved to -15.74 per cent.

    Most sectoral indices closed on the upside. The NSE Consumer Goods Index rose by 1.4 per cent. The NSE Insurance Index appreciated by 0.8 per cent while the NSE Banking Index inched up by 0.4 per cent. However, the NSE Oil & Gas Index declined by 0.7 per cent while the NSE Industrial Goods Index closed flat.

    Most investment pundits however remained cautious on the market outlook.

    “Although (Monday) today’s bullish performance was largely on account of investor bargain hunting as well as a noticeable stronger investor sentiment, we expect performance this week to follow an undulating trend while maintaining our bearish outlook on the market,” Afrinvest Securities stated.

    “We reiterate our negative outlook for the equities market in the short to medium term, amidst political concerns ahead of the 2019 elections, and the absence of a positive market trigger. However, positive macroeconomic fundamentals remain supportive of recovery in the long term,” Cordros Capital stated.

    Nestle Nigeria led the gainers with a gain of N20 to close at N1,500. Nigerian Breweries followed with N2.20 to close at N85 while GlaxoSmithKline Consumer Nigeria added N1.20 to close at N13.25 per share.

    On the negative side, Forte Oil led the losers with a drop of N1.60 to close at N19. Mutual Benefits Assurance, Union Diagnostics and Wapic Insurance declined by 2.0 kobo each to close at 23 kobo, 23 kobo and 40 kobo respectively while Diamond Bank slipped by one kobo to close at 89 kobo per share.

    Total turnover stood at 148.10 million shares valued at N1.89 billion in 2,853 deals. Oando led activities chart with a turnover of 30.30 million shares valued at N154.24 million. Diamond Bank followed with 16.35 million shares worth N14.47 million while United Bank for Africa placed third with 12.85 million shares worth N100.19 million.

  • Elumelu: Africa needs policies that attract investments

    Chairman, Heirs Holdings and Founder, Tony Elumelu Foundation; Tony Elumelu, has called on African Heads of State to develop policies to attract Private Sector Investment.

    He made this call while speaking to private sector captains, global investment leaders and key players in Africa’s development sector at a plenary discussion at the Africa Investment Forum titled: Championing Investments in Africa – Conversations with the private sector.

    The event organised by the African Development Bank featured robust and interactive conversations on the investment landscape of Africa with a view to articulate fresh strategies that strengthen the economic framework of the continent, as well as map out a bold blue print to attract and retain private global capital.

    At the plenary session with Mr Elumelu were H.E, Edouard Ngirente – Prime Minister of Rwanda, Philemon Yang – Prime Minister of Cameroon, President Sahle-Work Zewde of Ethiopia and President Macky Sall of Senegal.

    This critical conversation comes on the heels of the recently held Tony Elumelu Foundation Entrepreneurship Forum – the largest gathering of African entrepreneurs in which Mr Elumelu, in an interactive session with H.E President Nana Akufo-Addo of Ghana and President Uhuru Kenyatta of Kenya shared his broad business insight and tackled the peculiar challenges young Africans face in doing business on the continent.

    Speaking on the importance of creating an enabling environment to attract foreign investments, Elumelu said: “Beyond signing deals, we need to make sure our deals work. Our leaders need to go back and reform our policies and economic framework.” He further spoke on the need to attract the global investment community by leaving a visible trail of businesses successes.

  • Afreximbank, CDC Group sign $100m Master Risk Participation pact

    The African Export-Import Bank (Afreximbank) and CDC Group Plc have signed a $100-million master risk participation agreement to support Afreximbank’s Trade Facilitation Programme.

    Under the terms signed in Casablanca, Morocco, CDC will provide unfunded risk participation to Afreximbank as the Bank provides trade finance products that include trade confirmation services; trade confirmation guarantee; and irrevocable reimbursement undertakings.

    Speaking during the signing ceremony, Amr Kamel, Afreximbank’s Executive Vice President for Business Development and Corporate Banking, said that agreement will support Afreximbank’s trade confirmation services under which the Bank provides confirmation lines to African financial institutions to support their trade businesses and increase capacity to undertake trade finance transactions.

    It will also support the Afreximbank Trade Confirmation Guarantee Programme, which offers full guarantee to international banks on behalf of African financial institutions, with the aim of resolving the issue of lack of credit limit by international/confirming banks for the African counterparts or situations of limited credit limit due to capacity constraints, among others.

    Also speaking, Admir Imami, Director, Supply Chain Finance and Trade Finance of CDC, who signed on behalf of his company, said CDC was excited at the opportunity to work with Afreximbank and looked forward to many more joint projects and deals in the future.

    Also speaking at the just concluded Afreximbank structured trade finance in Casablanca, Kamel said structured trade finance offers Africa a vital pathway to boosting intra-African trade and increasing the continent’s global exports.

    Addressing the opening of the Fundamentals of Structured Trade Finance Seminar and Workshops, he regretted that Africa still suffered from a deficit of expertise in structured finance even though it was widely acknowledged as a highly effective trade financing tool.

    He said Afreximbank remained committed to equipping African financiers with the knowledge required to structure bankable trade and trade related project finance transactions.

    “This 18th Structured Trade Finance Seminar progresses Afreximbank’s goal of strengthening the capacity of its partners and clients in understanding trade and trade-related project financing issues as they affect Africa and is driven by the widening trade financing gap and the challenge of increasing the continent’s share of global trade,” he said.

    Kamel added that Africa had much to learn from the economic transformation of Morocco, noting that “Many years of modernising and expanding its infrastructure has successfully transformed Morocco into a commercial crossroads between Africa and the West.”

    In her address on behalf of the Government of the Kingdom of Morocco,  Zaaboul thanked Afreximbank for having chosen Morocco to host the seminar which represents a platform for learning and exchange on an important theme relating to structured trade finance

    Zaaboul stressed the role that intra-African trade can play in structuring development, especially as a vector of regional integration

    The Structured Trade Finance seminar and workshop is being attended by more than 200 participants and experts from across the globe, including executives of banks, law firms and other financial institutions, senior government officials and financial regulators as well as corporates actively engaged in the promotion and financing of African trade and trade-related projects.