The Nation Newspaper

Category: Equities

  • Access Bank targets banking sector leadership with new 5-year strategy

    Access Bank Plc plans to become Nigeria’s foremost bank in the next five years as the bank yesterday launched its new five-year strategic plan.

    Presenting the new five-year strategy yesterday at the Nigerian Stock Exchange (NSE) in Lagos, Group Managing Director, Access Bank Plc, Mr. Herbert Wigwe, said the bank was setting out a new and ambitious five-year strategy which will put it at the forefront of Africa’s changing financial landscape by creating a universal payments gateway to dominate international trade and inter-African payments.

    According to him, the bank’s strategy will mean that by 2022, millions of people will have access to banking services for the first time with customers making payments and transfers when and how they need to while businesses will be able to trade in new markets and invest in new technology.

    “We recognise that we have a vital role to play in growing Nigeria, our largest market. Our global footprint is also changing and growing. As a result of our strategy, we will be in the Africa corridor trade hubs and the global gateway markets within five years,” Wigwe said.

    He added that this next phase of the bank’s transformation journey will deliver its most ambitious goal yet – a bank that is digital, innovative and nimble.

    “A bank underpinned by the highest standards of risk and compliance. A bank that serves Africa and the world. Our ambition is to become Africa’s gateway to the world,” Wigwe said.

    He recalled that the bank had five years ago set the ambitious goal to attain top three positions in its chosen markets and by now, it has become a strong, diversified institution with a consolidated top tier position in its sector.

    The new plan is the latest in a series of transformative strategies that have resulted in sustained growth. From 2013 to November 2017, Access Bank has increased its total assets at a CAGR of 18 per cent and delivered shareholder returns of 90 per cent. The bank has also grown its customer base from 90,000 in 2002 to over 8.0 million in 2017 and in the same period opened 351 new branches.

    The new 5-year strategy is expected to accelerate this growth story to position Access Bank as the leading Nigerian bank by 2022.

    The new strategy has six strategic levers including digitally led, retail banking growth and consolidation in wholesale markets, customer focused, analytics driven, with robust risk management, strong global collaboration in key gateway markets and the creation of a universal payments gateway.

    To deliver the transformation, Access Bank will adopt a new organisational structure. The retail bank will have a customer segment focus, driven by digital and payments. The corporate bank will build deep sector expertise and deploy global relationship managers.

    Also, Access Bank’s subsidiaries will be organised around strategic clusters, with strong collaboration between them to secure trade finance and correspondent banking. The bank’s transformation programme will be underpinned by robust risk management together with high levels of automation to enhance the compliance and risk functions and drive customer insights.

    In next phase of its transformation programme, Access Bank will embark on a series of bold initiatives. At home, the goal is to be the ‘Number One Bank’ in Nigeria by growing the retail customer base, SME client base, and by dominating the top 100 Nigerian corporates.

    Internationally, Access Bank will develop an integrated global franchise by strategically developing its presence in key African markets, enhancing collaboration in global financial gateways including London and New York, Asia and the Middle East, and strengthening its trade hubs in India, Dubai and China.

    A strengthened presence in key African markets, and the creation of universal payments gateway combined with an integrated global franchise, ideally positions Access Bank to be Africa’s gateway to the world.

  • Why we are raising N131.65b, by Lafarge Africa

    • Urges shareholders to pick up rights

    Lafarge Africa Plc has urged shareholders to fully participate in the ongoing capital raising exercise by the cement company in order to support the realisation of its strategic growth objectives.

    At an interactive session at the Nigerian Stock Exchange (NSE), Chairman, Lafarge Africa Plc, Mr Mobolaji Balogun, urged shareholders to take up their rights to demonstrate their commitment to the achievement of the company’s strategic growth objectives.

    Explaining the reason for the rights issue, Balogun said Lafarge Africa through a series of transaction completed a 100 per cent indirect acquisition of United Cement (Unicem) through its acquisition of a 100 per cent stake in Egyptian Cement Holdings and by the acquisition Lafarge Africa inherited $507 million shareholder loans, along with $88 million of third party foreign currency debt, which were utilised for the 2.5 million metric tonnes capacity expansion of the cement plant in Calabar.

    He noted that while the capacity expansion, which was completed in record time and to budget, brought the plant’s capacity to five million metric tonnes, the debt has exposed Lafarge Africa to a significant foreign currency translation loss following the 40 per cent devaluation in the Naira.

    He pointed out that short term remedial action was taken by the board of LafargeHolcim in third quarter 2016 to shield the company from further devaluation.

    He said the net proceeds of the N131.65 billion rights issue would be used to refinance a portion of the company’s foreign currency denominated shareholder loans by way of a debt-to-equity conversion, finance working capital requirement and expand operation.

    Lafarge Africa is raising N131.65 billion through a rights issue of 3.098 billion shares of 50 kobo each to existing shareholders at a price of N42.50 per share. The rights issue opened on November 24, 2017 and it will close on December 15, 2017. It was pre-allotted on a basis of five new shares for every nine shares held as at close of business on November 1, 2017.

    In his remarks, Chief Executive Officer, Lafarge Africa Plc, Mr. Michel Puchercos said the rights issue was in the best interest of Lafarge Africa and its shareholders.

    He noted that despite the challenging economic and regulatory operating environment, the company has continued to make significant progress on a number of fronts, ensuring solid operating performance.

    He added that the results of the company’s transformation are already evident as seen in the first quarter 2017 unaudited results which show a robust revenue growth of 55 per cent, evidencing a clear demonstration of the company’s commitment to sustained operational excellence.

     

  • Onyema, Ezekwesili stress financial literacy

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr Oscar Onyema, and a former Minister of Education, Dr Oby Ezekwesili have emphasised the importance of financial literacy as a catalyst for lifting Nigeria and Africa out of poverty.

    Speaking at the awards ceremony of the 2017 NSE Essay Competition for Senior Secondary Schools Students in Nigeria, Onyema and Ezekwesili said financial literacy has direct positive impact on livelihoods, economic growth, sound financial systems, and poverty reduction.

    Onyema noted that contemporary society requires everyone to understand the principles of money management and to develop personal financial management skills that will enable them manage their finances effectively to achieve financial freedom.

    According to him, in realisation of the importance of financial literacy, the NSE has been implementing a number of programmes to promote financial literacy among young Nigerians, by encouraging them to learn how good financial decisions can better their lives now and in the future and ultimately grow the economy.

    He noted that through the NSE Essay Competition, the Exchange has, since inception, inspired over 60,000 young people in more than 7,000 schools across Nigeria to showcase what they have learnt about the financial market.

    Ezekwesili observed that Nigeria can only eradicate the dynasty of poverty through education noting that every country that has climbed out of poverty has done it on the back of improvement in the quality of education and the human capital.

    She urged teachers, parents and other stakeholders to be inclusive in inculcating financial literacy to the younger children, so as to raise a generation that will participate more in private sector and trades that will create wealth.

     

     

    She noted that the private sector must necessarily be more interested in the state of the schools in the country because these schools are the factories where the top talents needed by the private sector are produced.

    She also charged the students to think differently as they are the generation that will participate in the disruptive revolution.

    At the awards ceremony, Miss Gbenjo Olasubomi of Good Shepherd Comprehensive High School, Lagos State, emerged winner of the 2017 edition of the NSE Essay Competition after coming third in the 2016 edition. She clinched the first position ahead of over 10,100 participants across the country, winning N500,000 scholarship fund for university education, N250,000 equity investment and a laptop. Her school was also rewarded with a trophy, three desktop computers and a printer.

     

    Olanipekun Opeyeoluwa of Oritamefa Baptist Model School, Ibadan, Oyo State and Chukwuemeka Oluchi of Notre Dame Girls College, Ilorin, Kwara State, emerged first and second runners up respectively. Each of them also got a laptop, equity investment and cash rewards. Their schools got varying number of computers and trophy. Seven laptops were given as consolation prizes to seven other winners.

     

  • Foreign core investor seeks to buy out 7-Up’s minority shareholders

    Affelka SA, the foreign majority core investor in Seven-Up Bottling Company Plc, has launched a bid to buy all outstanding shares held by minority shareholders in the company, in a move reminiscent of a similar decision by its competitor, Nigerian Bottling Company (NBC).

    Regulatory filing yesterday showed that Affelka SA has secured initial regulatory approval to acquire all the “outstanding and issued shares of seven-Up Bottling Company that are not currently owned by Affelka”.

    Affelka is offering N112.70 per share for the 171.54 million ordinary shares of 50 kobo each held by the minority shareholders, representing 26.78 per cent of Seven-Up Bottling Company’s issued share capital. The bid price represents 15 per cent premium on the last traded share price of the company on August 9, 2017, the last business day prior to the date the proposal was received from Affelka SA by Seven-Up Bottling Company’s board.

    According to the proposal, the acquisition would be carried out through a scheme of arrangement under Section 539 of the Companies and Allied Matters Act (CAMA) and other applicable rules and regulations.

    Already, Seven-Up Bottling Company has received the “No Objection” approval of the Securities and Exchange Commission (SEC). However, the scheme is still subject to the approval of the shareholders at a Court-Ordered Meeting as well as the approval of the Federal High Court.

    The NBC had acquired minority shares and delisted from the Nigerian Stock Exchange (NSE) amidst protests by Nigerian retail shareholders.

    The Nigerian Stock Exchange (NSE) had in October 2017 downgraded Seven-Up Bottling Company Plc from its special pricing status category following the depreciation in share price of the company.

    The “high-priced stocks”, according to the NSE categorization, are stocks with share prices of N100 and above and regular and pre-determined level of activities. In 2012, the NSE had alongside the introduction of market-making introduced a pilot programme under which stockbrokers could move prices of “high priced stocks” with 10,000 shares as against the general operating rule of 50,000 shares for the movement of share prices of other stocks.

    The NSE indicated that it downgraded Seven-Up Bottling Company from a “high-priced stock” category to the general stock category with effect from today, Monday October 23, 2017.

    With the reclassification of Seven-Up Bottling Company from the “high-priced stocks” list, stockbrokers will only be able to move the share price of the company with 50,000 shares.

    “We bring to your notice that 7up Bottling Plc has qualified to be reclassified from a high-price stock to a medium-priced stock, as the company’s shares hit below the N100 mark on 30 May 2017, and trades below N100 up till the close of business on 17 October 2017. This indicates that 7up Bottling Plc has traded below N100 in at least four out of the last six months. The stockbrokers will be able to move the price of 7up Bottling Plc with 50,000 units with effect from 23rd, October 2017,” the NSE stated.

  • Stock Exchange charges new stockbrokers on integrity

    The Nigerian Stock Exchange has urged newly inducted stockbrokers to contribute to the development of the Nigerian capital market by operating in line with extant rules and international best practices.

    At the induction of recently qualified dealing clerks at the NSE in Lagos, Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, underscored the importance of professionalism, integrity, transparency and reliability in order to deliver excellent service to quoted companies and investing public.

    According to him, as the NSE continues to work on its goal of becoming a more agile and demutualized exchange, the importance of the role of stockbrokers cannot be over emphasized.

    “It goes without saying that the investing community will know and judge the Nigerian capital market through your character and service innovation. The manner in which you engage and render your professional duties to your clients will go a long way in shaping the perception of our market,” Onyema said.

    He noted that with the extremely thorough and strict process leading to the stockbrokers’ qualification, there is no doubt that they are worthy to be practicing stockbrokers enabled to trade on any floor of the NSE in Nigeria.

    He assured that the Exchange would support the new brokers in developing their capacity and businesses.

    He however warned that the NSE will not hesitate to wield the axe on any erring member that falls short on any of its rules.

    “Let me be clear that we have a zero tolerance policy on all infractions and I am confident that I will not get a negative report concerning any of you. To this end, I would like to challenge you to uphold the tenets of your profession. Let your word be your bond. This would not only build and sustain a transparent and harmonious working relationship, but would also engender confidence and growth of your respective organizations and the capital market at large,” Onyema said.

     

  • Equities rebound with N88b gain

    Quoted equities staged a major recovery yesterday as bargain-hunters sought to take advantage of recent decline in share prices to rebalance their portfolios. Most indices at the Nigerian Stock Exchange (NSE) trended upward with the average year-to-date return rising to 39.55 per cent.

    The All Share Index (ASI)-the benchmark price index at the stock market rose by 0.68 per cent to close at 37,503.73 points as against its opening index of 37,250.78 points. With more than two gainers for every loser, aggregate market value of all quoted equities rose from N12.973 trillion to close at N13.061 trillion.

    Most sectoral indices also closed positive. The NSE Consumer Goods Index rose by 0.9 per cent. The NSE Industrial Goods Index and NSE Banking Index rallied 0.3 per cent each while the NSE Insurance Index closed flat. However, the NSE Oil & Gas Index declined by 0.3 per cent.

    There were 25 gainers against 11 losers. Nigerian Breweries led the gainers with a gain of N6.43 to close at N137.60. Stanbic IBTC Holdings rose by N1.85 to close at N41.85. Dangote Cement chalked up N1 to close at N241. Cement Company of Northern Nigeria added 43 kobo to close at N9.40 while Global Spectrum Energy Services rose by 26 kobo to close at N5.51 per share.

    On the negative side, Mobil Oil Nigeria led the losers with a drop of N5.40 to close at N162.50. Guinness Nigeria declined by N1.42 to close at N98.58. PZ Cussons Nigeria lost N1.15 to close at N22.72. Okomu Oil Palm dropped by 78 kobo to close at N67.22 while Dangote Sugar Refinery dipped by 26 kobo to close at N17.55 per share.

    Total turnover trended above average with the exchange of 1.1 billion shares valued at N4.8 billion in 4,089 deals. Wapic Insurance was the most active stock with a turnover of 655.35 million shares valued at N327.67 million. Diamond Bank followed with 68.21 million shares worth N80.33 million while Zenith Bank placed third with 62.74 million shares valued at N1.56 billion.

    “Given today (Tuesday)’s performance and improved market breadth, we expect market performance and sentiment in the near term to remain positive as investors continue to take positions in anticipation of year-end rally,” Afrinvest Securities stated.

     

  • Nigerian, Moroccan stockbrokers sign agreement on mutual development

    Nigerian, Moroccan stockbrokers sign agreement on mutual development

    Nigeria and Morocco have extended the economic agreements between the two countries with the signing of a Memorandum of Understanding (MoU) between Association of Stockbroking Houses of Nigeria (ASHON) and Association Professionnelle des Sociétés de Bourse (APSB) of Morocco.

    The MoU, which was signed in Lagos yesterday by ASHON’s Chairman, Mr Patrick Ezeagu and his APBS counterpart, Mr Rachid Outariatte was a follow-up to the MoU between the Nigerian Stock Exchange and Casablanca Stock Exchange aimed at enhancing inter-connectivity between the two Exchanges.

    Speaking after the signing ceremony at the Nigerian Stock Exchange, Ezeagu said the MoU brings the relationship between the NSE and Casablanca Stock Exchange to the level of stockbrokers, adding that the relationship would enhance professionalism and accelerate market development in both Exchanges.

    According to him, the MoU provides a framework through which the two professional bodies could strategize in order to realise the mutual objectives of growth and development.

    He added that the overriding objective is how to move the two markets forward through innovative products, development of human capital and regular exchange of information.

    In his remarks, Outariatte said the two professional associations have similar interest and the new relationship would bring about mutual development.

    He pointed out that Nigeria remains a big market in Africa and a place of choice for any client who intends to diversify portfolio.

    Outariatte assured that Moroccan investors would be encouraged to take advantage of investment opportunities in the Nigerian capital market.

    According to the MoU, the two professional bodies shall co-operate on the strength of exchange of experience between the two professional bodies through mutual visits of stockbrokers and analysts of each association in order to take advantage of both markets, establishment of a broker access system, exchange of information within the limit of confidentiality on the issues affecting Nigerian and Moroccan’s capital markets and the national economy.

    The MoU also includes study tour of staff for enhanced knowledge of capital markets in both countries, sharing knowledge and best practices pertaining to trading and post trading, developing processes and procedures for a dual listing of both Moroccan companies on the NSE and Nigerian companies on the Casablanca Stock Exchange.

    Others include organising joint events , conferences and workshops to improve understanding of the capital markets in both countries and analyzing  business opportunities, risks, threats and trade limitations on both markets.

     

  • Global Spectrum Energy Services to pay 30% net profit as dividend

    •Boosts NSE with N4b listing

    Global Spectrum Energy Services Plc yesterday in Lagos listed its shares on the Nigerian Stock Exchange (NSE) with a promise to pay a minimum of 30 per cent of its net profit to shareholders as cash dividend.

    Global Spectrum Energy Services listed its total outstanding issued share capital of 800 million ordinary shares of 50 kobo each at N5 per share, adding N4 billion to the market capitalisation of quoted equities on the NSE.

    Managing Director, Global Spectrum Energy Services Plc, Mr. Colm Doyle, said that as the company continues to implement its expansion plan that will ensure year-on-year increase in profit, the company has decided to give out minimum of 30 per cent of its profit as dividend to its shareholders.

    He said the company plans to increase its profit over a five-year period from N847.87 million in 2018 to N2.62 billion by 2022.

    According to him, the company has started implementing its expansion strategy in its areas of operation including oil and gas, refined petroleum products supply and distribution tank farm, blending of lubricants and vessel fleet expansion.

    He noted that the company has acquired a prime waterfront site in Port Harcourt for the development of a 50 million litres-capacity tank farm with storage capacity for refined petroleum PMS, AGO, DPK and a 6.0 million metric tonnes LPG storage facilities.

    He added that the company in conjunction with its partners Aegean Marine Petroleum in Greece will develop 10,000 metric tonnes ultra-modern lubricants blending plant as well as a state of the art laboratory situated at the tank farm site in Port Harcourt.

    He pointed out that Global Spectrum Energy Services is the local supplier of Aegean marine lubricants in Nigeria, noting that Aegean Marine Petroleum is a leading global bunker physical supplier, which has also been trading marine lubricants for more than 16 years, supplying vessels worldwide from carefully selected major marine brands.

    He said his company is seeking to build capacity in its Nigerian owned and flagged vessels as Nigerian owned and flagged vessels have a distinct competitive advantage in the current maritime sector.

    A five-year review of the company’s performance showed that turnover declined from N986.45 million in 2013 to N934.62 million in 2017 while profit before tax grew from N165.31 million in 2013 to N347.13 million by October 2017.

    The company financial projection in the next five years showed that turnover is expected to grow from N3.88 billion in 2018 to N8.1 billion in 2022 while net operating income will grow from N2.04 billion to N4.43 billion in 2022. Also operating expenses will move from N1.19 billion to N1.8 billion, Profit before tax to increase from N847.87 million to N2.62 billion in the next five years while company’s asset base will grow to N14.09 billion by 2022 from N5.46 billion in 2018.

     

     

  • Court turns down Oando, SEC, NSE’s case

    Court turns down Oando, SEC, NSE’s case

    •Directs parties to IST

    The Federal High Court (FHC) in Lagos yesterday declined jurisdiction on the case instituted by Oando Plc against capital market regulators, directing the parties to the Investment and Securities Tribunal (IST).

    The Nigerian Stock Exchange (NSE) had on Monday October 23, 2017 placed the shares of Oando on technical suspension, “thus, the shares will be available for trading but there will be no price movement while the technical suspension subsists”. The technical suspension was part of directives from the Securities and Exchange Commission (SEC), which ordered suspension of trading on the shares and forensic audit of the operations of Oando.

    Read Also: Investors strike 14 deals as Oando remains on technical suspension

    Oando obtained an interim court order on Monday October 23, 2017, restraining the NSE and any other party working on their behalf from giving effect to the directive of the SEC to implement a technical suspension of the shares of the company pending the hearing and determination of the motion for injunction and also an order restraining the SEC and any other parties claiming through or working on behalf of the Commission from conducting any forensic audit into the affairs of the company pending the hearing and determination of the motion for injunction. However, both the NSE and SEC were served with the enrolled court order on Tuesday, October 24, 2017 after the technical suspension was carried out by the NSE on Monday, October 23, 2017.

    At the court hearing yesterday on the Oando v SEC and others (FHC/L/CS/1601/17), Honourable Justice Aikawa of the Lagos Division of the Federal High Court declined jurisdiction on the matter and consequentially struck out the suit. The cost of N20,000 was awarded against the plaintiff in favour of the first defendant-SEC.

  • Lafarge Africa buys out Ashaka Cement’s shareholders with 85.26m shares

    Lafarge Africa buys out Ashaka Cement’s shareholders with 85.26m shares

    Lafarge Africa Plc has issued and listed 85.26 million ordinary shares of 50 kobo each in the name of minority shareholders of Ashaka Cement (AshakaCem) Plc following the conclusion of share exchange agreement that seeks to fully consolidate the Gombe-based Ashaka Cement as a wholly-owned subsidiary of Lafarge Africa.

    Listing documents at the Nigerian Stock Exchange (NSE) yesterday indicated that a total of 85.26 million ordinary shares were listed in the name of Lafarge Africa Plc, raising the cement giant’s issued share capital from 5.491 billion ordinary shares of 50 kobo each to 5.576 billion ordinary shares of 50 kobo each.

    “The shares listed were issued to shareholders of Ashaka Cement in exchange for their shares in Ashaka Cement pursuant to a scheme of arrangement for capital re-organisation between Ashaka Cement and holders of its fully paid ordinary shares of 50 kobo each dated 26 September 2017,” the regulatory document indicated.

    Lafarge Africa had separately launched a Mandatory Tender Offer (MTO) and Voluntary Tender Offer (VTO) to acquire minority shares in AshakaCem. During the MTO and VTO, Lafarge Africa offered 57 new Lafarge Africa shares for 202 AshakaCem shares and a cash consideration of N2 per every AshakaCem exchanged.

    Shareholders of AshakaCem had at an extraordinary general meeting (EGM) in December 2016 approved the resolutions for a voluntary delisting of the company from the NSE. With the approval at the EGM, shareholders were given a 90-day window to decide on the exit plan on offer, in line with the requirements of the NSE on voluntary delisting.

    Within the 90-day period, shareholders had three options. They may decide to trade their shares on the NSE through their nominated stockbroker. Alternatively, shareholders may decide to receive consideration from Lafarge Africa in exchange for transferring their shares, on same terms as were for the MTO and VTO. On the other hand, shareholders may decide to retain their shareholdings in the unlisted AshakaCem.

    The board of Ashakacem said the voluntary delisting and full integration of the company as subsidiary of Lafarge Africa will offer minority shareholders many benefits, including revenue diversification by geography as a result of Lafarge Africa’s operations in Nigeria, South Africa and Ghana.

    Lafarge had on July 9, 2014 received shareholders’ approval to consolidate its cement businesses in Nigeria and combine these with South African operations to create a leading sub-Saharan building materials giant to be known as Lafarge Africa Plc. The consolidation was done by transferring Lafarge’s assets in South Africa and Nigeria to Lafarge Cement Wapco Nigeria Plc.

    Following the consolidation of Lafarge’s businesses in Nigeria and South Africa into Lafarge Africa, Lafarge Africa had acquired 58.61 per cent majority equity stake in Ashaka Cement. The majority equity stake was previously held by Lafarge Nigeria (UK) Limited. The acquisition was done through a block trade at the NSE.