The Nation Newspaper

Category: Equities

  • Lafarge Africa, Mutual Benefits seek N133.6b from shareholders

    Lafarge Africa Plc and Mutual Benefits Plc have launched bids to raise more than N133.6 billion through rights issue of new ordinary shares.

    The two companies yesterday separately filed application with the Nigerian Stock Exchange (NSE), seeking to raise new equity funds from existing shareholders.

    Lafarge Africa plans to raise N131.65 billion through a rights issue of about 3.1 billion ordinary shares of 50 kobo each at N42.50 per share. The new shares will be pre-allotted to shareholders on the basis of five new ordinary shares for every nine ordinary shares held as at the close of business yesterday.

    Mutual Benefits is seeking to raise N2 billion through a rights issue of 4.0 billion ordinary shares of 50 kobo each at nominal value of 50 kobo per share. The rights will be pre-allotted on the basis of one new ordinary share for every two ordinary shares held as at the close of business yesterday.

    LafargeHolcim, which holds the majority equity stake of 72.59 per cent in Lafarge Africa, has already indicated it will subscribe fully to its rights. LafargeHolcim had proposed to pick up its rights under a debt-for-equities deal that will see conversion of LafargeHolcim’s dollar-based loan to equities.

    Many Nigerian shareholders had raised objections to the debt-for-equities deal, which they said could give the majority core investor undue advantage to increase its controlling equity stake in the company.

    Chairman, Lafarge Africa Plc, Mr. Mobolaji Balogun, said the recapitalisation would help to reduce the group’s exposure to adverse foreign currency translation losses as experienced in 2016 following a 40 per cent depreciation of the Naira against the Dollar.

    He noted that the decision of LafargeHolcim to convert existing loans into equity demonstrates the core investor’s continued belief in the Nigeria story, pointing out that the rights issue is the largest so far in the Nigerian capital market and the largest investment in a listed company by an investor.

    According to him, the rights issue will help to reduce the group’s foreign currency exposure by 50 per cent while the remaining portion of the debt, with the support from LafargeHolcim, has been refinanced and hedged for 12 months.

    Lafarge Africa ended the third quarter with a marginal recovery in profitability as significant increase in net interest expense constrained the bottom-line. Despite about 39 per cent growth in sales, Lafarge Africa ended the third quarter with a pre-tax profit of N1.08 billion.

    Key extracts of the interim report and accounts of Lafarge Africa Plc for the period ended September 30, 2017 showed that sales rose by 38.9 percent to N223.67 billion in 2017 as against N161.04 billion recorded in comparable period of 2016. Gross profit also surged from N18.11 billion in 2016 to N57.31 billion in 2017. The cement manufacturer pooled operating income of N18.40 billion in 2017 compared with operating loss of N32.97 billion in comparable period of 2016.

    However, net finance expense jumped from N7.4 billion to N17.31 billion. Profit before tax thus depressed to N1.08 billion, albeit a considerable recovery when compared with pre-tax loss of N40.37 billion in 2016. After taxes, net profit stood at N937.91 million by September 2017 compared with net loss of N37.4 billion in 2017. Earnings per share was modest at 10 kobo in 2017 compared with net loss per share of N8.27 in corresponding period of 2016.

     

  • Our listing was one of our many successes, says CWG CEO

    Group Chief Executive Officer, CWG Plc, Mr. James Agada, has said the listing of the information and communication technology company on the Nigerian Stock Exchange (NSE) was one of the highpoints of its achievements in the past 25 years.

    Speaking at a Gala Night organised by the company in celebration of its 25th Silver Jubilee anniversary in Lagos, Agada said CWG had recorded several memorable moments in the past 25 years to become a leading information and communications technology provider in Nigeria.

    Admitting that it would be difficult to single out any particular moments in the life of the company as the most memorable one, Agada, who took over as the CEO in early 2016 said the company has enjoyed several moments that can be said to be memorable.

    According to him, the highpoint of the memorable moments was the listing of CWG on the NSE in November 2013, after the company had worked hard and hoped to be listed on NASDAQ.

    “It has been 25 years of many memorable moments in the life of CWG, but it will be very difficult to rate which one is most. A long time ago we were working and wishing that we would be listed on NASDAQ, and in November 2013, we got listed on the Nigeria Stock Exchange. That was a big milestone,” Agada said.

    He added that the survival of CWG from one generation to another generation; where in January of 2016, the company transitioned from the founder of the company to a new management is another memorable landmark for the organisation, pointing out that not every company founded by a Nigerian has survived beyond its founder.

    He pointed out that the introduction of Finacle by CWG into the Nigerian economy and the impact it made in becoming the core banking application in Nigeria was a period of immense pride for the company, even up till today.

    CWG Plc, formerly known as Computer Warehouse Group, started as a Dell reseller in 1992. However, the company has since grown to be the largest system integration company in Sub-Saharan Africa with offices in Nigeria, Ghana, Cameroun and Uganda; and partners in 27 other African countries. CWG has also graduated more than 1,500 students through its CWG Academy, which was started in 2010 to fill the gap in the ICT skills market.

  • Conoil grows turnover to N70.2b in Q3

    Conoil Plc grew its top-line by about 10 per cent to N70.23 billion in the third quarter as the petroleum-marketing company braced against industry challenges to sustain positive outlook.

    Key extracts of the nine-month report for the period ended September 30, 2017 showed that Conoil grew its turnover to N70.2 billion in third quarter 2017 as against N63.95 billion recorded in comparable period of 2016. Gross profit rose from N9.55 billion to N10.57 billion. Profits before and after stood at N2.03 billion and N1.36 billion respectively in 2017 while earnings per share stood at N1.96. Pre and post tax profits stood at N2.72 billion and N1.81 billion in third quarter 2016.

    Market analysts described the company’s performance as commendable citing the tough operating environment in the downstream sector.

    Analysts noted that despite the non-payment of Petroleum Support Fund (PSF) owed major oil marketers by the Federal Government, the company still recorded appreciable profit.

    The management of the company attributed the third quarter performance to its strong resolve to keep improving on its operations by constantly renewing its products and services to meet the ever-changing demands and expectations of its discerning customers.

    “We will quicken our pace and sharpen our strategies in the coming months to meet our goal of moving from competing to winning in the market place, while focusing more on delivery and growth,” the company stated.

    While the management of the company expects that the economic environment would remain challenging for the last quarter of the year, it assured its numerous shareholders and other stakeholders that, it remains committed to its ultimate goal of maximizing value to shareholders and excellent service delivery and products to customers.

  • 64 companies compete for PEARL Awards

    The Board of Governors of PEARL Awards Nigeria has approved the preliminary qualification and nomination of about 64 companies to compete in the various categories of the highly regarded awards.

    The research & collation committee of the Awards Central Working Committee had conducted wide-ranging analysis of performance of quoted companies based on audited report and accounts presented to the Nigerian Stock Exchange (NSE). The Technical Committee of the Board thereafter reviewed the report of the research and collation committee and forwarded its review for consideration and approval of the Board of Governors.

    President, PEARL Awards Nigeria, Mr. Tayo Orekoya, said the PEARL Awards occupies a unique position in the capital market as the Awards that identifies and rewards quoted companies based on empirical data, a uniqueness that earned the Awards the endorsement of the apex capital market regulatory authority, the Securities & Exchange Commission (SEC) in 2003.

    He outlined that the Awards was re-classified into three main categories to broaden its scope and recognise the contributions of other stakeholders to the capital market.

    The categories of the Awards include the main competitive awards category, which recognises sectoral leadership, market excellence and overall highest performing company. The honorary awards category recognises PEARL Chief Executive Officer (CEO) of the Year, special recognition award for capital market development, capital market journalist of the year and media award for capital market reporting. The third category-the special recognition awards category, recognises NASD Traded Security of the Year, NASD participating institution of the year, issuing house of the year, stockbroking firm of the year and good corporate governance award.

    Companies that have been nominated for the awards include Livestock Feeds Plc, Okomu Oil Palm Plc, Presco Plc, UAC of Nigeria Plc, Chellarams Plc, John Holt Plc, Chams Plc, Computer Warehouse Group Plc, E-Transact International Plc, Guinness Nigeria Plc, International Breweries Plc, Nigerian Breweries Plc, Flour Mills of Nigeria Plc, Dangote Sugar Refinery Plc, Nascon Allied Industries,  PZ Cussons Nigeria Plc, Unilever Nigeria Plc, Nigeria Enamelware Co. Plc, Zenith Bank Plc, Guaranty Trust Bank Plc, United Bank for Africa, NEM Insurance Plc, AIICO Insurance Plc, Unity Kapital Assurance Plc, Africa Prudential, FCMB Group Plc, United Capital Plc, GlaxoSmithKline Consumer Nigeria, Neimeth International Pharmaceutical  Plc, Fidson Healthcare Plc, Lafarge Africa Plc, Dangote Cement Plc and CAP Plc among others.

    “Since inception and to date, we have been guided by the principles of fairness, transparency and objectivity in our selection process while our scientific approach in determining nominee companies remains impeccable. We are not unaware of the huge responsibility placed on our shoulders as a result of the reliability on our sense of judgment by investors and shareholders alike, but are determined to continue to play our part with every sense of fairness, objectivity and equity,” Orekoya said.

    He noted that as Nigerian capital market continues to strive towards market stability and growth and regulators continue to work towards restoration of investors’ confidence in the market, PEARL Awards would continue to focus on engendering healthy rivalry, rewarding outstanding performance, thereby enhancing vibrancy of the market.

  • SEC launches capital market development fund

    Securities and Exchange Commission (SEC), Nigeria’s apex capital market regulator, has established a Nigerian Capital Market Development Fund (NCMDF) to foster the development of the capital market through promotion of innovative products, inclusive participation and investor education.

    Speaking at the inauguration of the board of NCMDF in Abuja, former chairman of the board of SEC and former Director General of SEC, Dr. Suleyman Ndanusa  commended SEC on its efforts at discharging its primary mandate of regulating and developing the Nigerian capital market particularly in the area of investor protection.

    Ndanusa noted that the apex regulatory organization in recent times has been unrelenting in its efforts at implementing numerous initiatives aimed at developing the market.

    He highlighted some of the initiatives to include the launch of the National Investor Protection Fund, a trust scheme established to compensate investors who incurred losses arriving from insolvency and bankruptcy as well as dematerialization of share certificate, direct cash settlement system, and the on-going e-dividend registration.

    Ndanusa said the primary focus of NCMDF is to fund relevant market development initiatives that will spur growth of the market and the Nigerian economy.

    According to him, the fund seeks to facilitate the introduction of proper understanding of new products to deepen the market, provide capacity building to tackle emerging challenges and create an industry wide synergy through partnership with government and non governmental agencies and corporate bodies with similar objectives.

    He noted that considering the dynamic nature of the global economic system particularly the financial sector, regulators worldwide continue to seek relevant initiative to create opportunities and tackle emerging challenges.

    “The lunching of the Nigerian Capita Market Development Board is therefore expected to contribute greatly towards the developmental efforts of the SEC to grow the market, enhance financial inclusion and regulatory visibility. I am glad to note that the board members chosen have impressive pedigree and were selected on account of their proven integrity, wealth of experience and unrelenting contributions towards the development of the Nigerian capital market,” Ndanusa said.

    In his remarks, Director General, Securities and Exchange Commission (SEC), Mounir Gwarzo said the NCMDF was part of the Commission’s mandate to deepen the market and enhance the socio economic development of the country.

    He noted that SEC developed the 10-year Capital Market Master Plan (CMMP) as a blueprint for the development of a vibrant capital market in Nigeria, adding that the Commission has been putting all its energy, resources and time into implementing the master plan.

    “The Commission has provided the initial takeoff grant for the Fund but going forward the entire capital market community should come together to discuss details of how we can all contribute to the continued funding for this critical market vehicle. The board appointment is a call to service as a crucial enabler in the industry which will require total commitment and dedication of the highest standards, attributes which I am confident that the board members epitomize individually and collectively. The Commission has played its part and will continue to take its market development mandate with all seriousness. We shall ensure that the fund immediately gets down to the important business of facilitating capital market development in accordance with the rules guiding its operation,” Gwarzo said.

    The NCMDF was incorporated on August 7, 2017 and the composition of the board was approved by the Minister of Finance, Kemi Adeosun on October 9, 2017. Members of the board include Mounir Gwarzo  – Chaiman, Non executive Commissioner of SEC – Vice Chairman, Executive Commissioner of SEC, Mrs Olubunmi Siyanbola – Director, Home Finance, Ministry of Finance; Dr. Faruk Umar – Chairman, Association for the Advancement of the Rights of Nigerian Shareholders; Mr. Sunny Nwosu – Independent Shareholders Association of Nigeria, Mr. Bayo Olugbemi – President, Institute of Capital Market Registrars – Represented by Walter Oghogho and Ify Ejeizie – Association of Stock Broking Houses of Nigeria.

     

  • Quoted companies in last-minute rush to meet Q3 earnings deadline

    Quoted companies that have not submitted their operational reports and financial statements for the third quarter must submit their reports to the Nigerian Stock Exchange (NSE) before the close  of work today in order to avoid poor corporate governance tag and sanctions that may range from N100,000 to about N100 million.

    Regulatory filing calendar of the NSE yesterday indicated that most quoted companies are mandatorily required to submit their interim earnings reports for the nine-month period ended September 30, 2017 on or before the close of work today, October 31, 2017.

    Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than 90 calendar days, or three months, after the expiration of the period. The rules also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant period.

     

  • Union Bank closes application for N50b rights issue

    Union Bank closes application for N50b rights issue

    Union Bank of Nigeria (UBN) Plc will today close application for its N50 billion rights issue.  Application list for the rights issue opened on September 20, 2017 and will close today,  Monday October 30.

    Union Bank is raising N49.745 billion from existing shareholders through a rights issue of 12.133 billion ordinary shares of 50 kobo each at N4.10 per share. The rights issue has been pre-allotted on the basis of five new ordinary shares of 50 kobo each for every seven ordinary shares held as at the close of business on Monday August 21, 2017.

    The rights are also tradeable on the Nigerian Stock Exchange (NSE) during the offer period, giving shareholders that fully or partly renounced their rights opportunity to trade those shares at profit. Union Bank’s share price opens today at the NSE at N5.72 per share.

    The net proceeds of the rights issue will be used to enhance the bank’s regulatory capital requirement, increase working capital and grow in strategic areas that correspond to emerging opportunities in Nigeria, enhance technological platforms through strategic investments in technology and digitalisation and optimise customer experience with investments in customer touch points.

    Chief Executive Officer, Union Bank of Nigeria (UBN) Plc, Mr. Emeka Emuwa, said the new capital raising was critical to the bank’s short to medium term business objectives as the new equity funds will support the bank’s strategy to accelerate business growth and position it as a leading commercial bank in Nigeria.

    “With the commencement of the rights issue subscription, we have now officially entered a new phase of our transformation where we will be focused on accelerating business growth to deliver on our objective of becoming one of Nigeria’s leading financial institutions,” Emuwa said.

    The bank has kicked off a roadshow to sensitise shareholders with an event in Enugu last week. Shareholders’ fora will also be held in Lagos, Port-Harcourt and Abuja later this month.

    Chapel Hill Advisory Partners Limited is Lead Issuing House to the offer while FSDH Merchant Bank Limited and Stanbic IBTC Capital Limited are Joint Issuing Houses.

  • Quoted firms have tomorrow as deadline to submit Q3 earnings reports

    Quoted companies that have not submitted their operational reports and financial statements for the third quarter must submit their reports to the Nigerian Stock Exchange (NSE) before the close  of work tomorrow in order to avoid poor corporate governance tag and sanctions that may range from N100,000 to about N100 million.

    Regulatory filing calendar of the NSE at the weekend indicated that most quoted companies are mandatorily required to submit their interim earnings reports for the nine-month period ended September 30, 2017 on or before the close of work on Tuesday, October 31, 2017.

    Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than 90 calendar days, or three months, after the expiration of the period. The rules also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant period.

    Most quoted companies, including banks, major manufacturers, oil and gas, breweries and cement firms use the 12-month Gregorian calendar year as their business year.  Not less than 83 per cent of quoted companies use the 12-month Gregorian calendar year as their business year.

    NSE tags and applies fines on companies that fail to meet earnings reports’ deadline. The Exchange had on January 1, 2017 launched a new sanction regime for delay in submission of companies’ results. Under the new sanction regime, companies may pay fines that range from N100, 000 to more than N100 million as penalties for delay in the submission of their corporate earnings reports.

    Companies that also delayed their financial statements and accounts face threats of suspension and delisting in addition to the monetary fines.

    Under the rules, quoted companies are required to file their unaudited quarterly accounts with the NSE not later than 30 calendar days after the relevant quarter, and publish it within five business days after the date of filing, in at least two national daily newspapers, and post it on the company’s website, with the web address disclosed in the newspaper publication. Also, an electronic copy of the publication shall be filed with the Exchange on the same day as the newspaper publication. Where the company chooses to audit its quarterly accounts, it shall be required to file such accounts not later than 60 calendar days after the relevant quarter.

  • Haruna Jalo-Waziri takes over as CEO at CSCS

    The board of directors of the Central Securities Clearing System (CSCS) Plc has appointed Mr. Haruna Jalo-Waziri as as the managing director of the company. Jalo-Waziri will resume on November 1, 2017. Securities and Exchange Commission (SEC) has approved the appointment.

    Mr. Jalo-Waziri replaces Mr. Bola Adeeko, who was appointed Interim Chief Executive Officer on January 1, 2017, while the board embarked on an executive search for a substantive CEO, following the early retirement of Mr. Kyari Bukar.

    Jalo-Waziri is expected to drive the next phase of CSCS strategic goals in respect of diversification of the company’s revenue base, promoting strategic alliances with peer Central Securities Depositories and other financial market entities within and across the African region, as the company continues to advance towards becoming the globally respected and leading Central Securities Depository in Africa.

    Chairman, Central Securities Clearing System (CSCS) Plc, Mr. Oscar Onyema, said Jalo-Waziri has vast industry knowledge coupled with a clear understanding of the company’s values and strategic vision.

    “He has been involved in several innovations in the capital markets. These attributes make him a right choice to effectively lead our company,” Onyema said.

    He also commended the out-going Interim Chief Executive Officer, Mr. Adeeko for his accomplishments during his short stint.

    According to him, Adeeko has done tremendously well in executing the approved plans and objectives of the company which has led to significant improvements in operations and profitability of the company.

    Jalo-Waziri was, until his appointment, the Executive Director, Capital Markets, Nigerian Stock Exchange (NSE). An economist with a record of professional and leadership excellence, he brings to CSCS a wealth of experience spanning over 20 years in Capital Market. His experience covers regulation, investment management, deal origination and trading. He has been involved in various successful ground-breaking deals such as Heineken Euro Bond, and British American Tobacco M&A, amongst others.

    A consummate professional, Jalo-Waziri was the CEO of UBA Asset Management Limited and UBA Stockbrokers Limited. He also founded Kakawa Asset Management Limited. Prior to this, he had worked at the Securities and Exchange Commission (SEC) and Afrinvest West Africa (formerly SECTRUST).

    Jalo-Waziri is a graduate of the University of Maiduguri, where he studied Economics and has an MBA from Tafawa Balewa University, Bauchi. He is an alumnus of Lagos Business School and the Venture Capital Institute of America.

     

  • Guinness Nigeria’s N40b rights issue records full subscription

    Guinness Nigeria Plc has secured additional N39.7 billion new equity funds from its existing shareholders as shareholders picked up the entire rights offered by the brewer.

    Guinness Nigeria had offered 684.49 million ordinary shares of 50 kobo each at N58 per share to existing shareholders on the basis of five new shares for every 11 shares held as at the close of business on March 15, 2017. Application list for the rights issue opened on July 24, 2017 and closed on August 30, 2017.

    Listing documents at the weekend showed that 684.49 million ordinary shares of 50 kobo each were added to shares outstanding in the names of Guinness Nigeria. With the listing, total issued and fully paid up shares of Guinness Nigeria has now increased from 1.5 billion shares to 2.19 billion shares.

    Diageo Plc, United Kingdom (UK), the majority core investor in Guinness Nigeria, was expected to inject additional N21 billion in Guinness Nigeria by subscribing for its rights. The rights issue provided another window for Diageo to inject capital into the Nigerian subsidiary after the multinational backed down from its earlier proposal to acquire additional equity shares in Guinness Nigeria.

    Diageo had withdrawn from its plan to acquire additional shares of up to 15.7 per cent in Guinness Nigeria from minority shareholders, citing the challenging market conditions in Nigeria. Diageo had in September 2015 announced that it was considering acquiring 15.7 per cent equity stake in Guinness Nigeria through its wholly owned subsidiary, Guinness Overseas Limited.

    Managing Director, Guinness Nigeria Plc, Peter Ndegwa, said the net proceeds of the new capital raising will support the company in executing its strategy in the context of ongoing external economic challenges.

    According to him, the rights issue will allow the company to deliver on its strategic objectives and give all its shareholders a unique opportunity to increase the number of shares they hold.

    “Our expectation is that funds raised will help mitigate the impact of increasing finance costs, optimise our balance sheet and improve the company’s financial flexibility,” Ndegwa said.

    Chairman, Guinness Nigeria Plc, Babatunde Savage, said the supplementary new issue is part of the company’s long term plans to continue to invest in its business in Nigeria.

    “We have been here in Nigeria for 67 years and, while it has been challenging in recent times for many Nigerian businesses, we remain committed to this market as evidenced by our decision to offer this Rights Issue. We are grateful for the support that we have received from our shareholders and other stakeholders up to this point,” Savage said.

    Last year, Guinness Nigeria became the first total beverage alcohol company in Nigeria by acquiring the rights to distribute international premium spirits like Johnnie Walker whisky and Baileys liqueur in Nigeria and later commissioning a N4.7 billion spirits line for locally manufactured spirits at its Benin plant.