The Nation Newspaper

Category: Equities

  • Conoil commits to wealth creation, jobs

    Conoil commits to wealth creation, jobs

    As Nigeria celebrated its 57th independence anniversary yesterday, the nation’s leading indigenous downstream oil company, Conoil Plc, restated its commitment to its cardinal objectives of creating wealth and job opportunities for all Nigerians.

    In a goodwill message during the country’s 57th independence anniversary, it stated that it remains proud as a Nigerian company with world-class services to meet various energy needs.

    The company challenged Nigerians to harness their creative and productive abilities in aid of the country’s quest to self-sufficiency.

    Conoil urged Nigerians to focus more on those great qualities that bind them together as the world’s most populous black nation, and ignore the intangible things that tend to divide the people.

    It advised Nigerians to deepen their sense of patriotism to rekindle the nation’s flame of oneness and fortify its enviable position as Africa’s leading economic giant.

    While urging Nigerians to continue to work assiduously towards ensuring togetherness with a view to guaranteeing a brighter future for the country, Conoil implored them to maximise their common ideals to foster the nation’s unity despite its diversity.

    Noting that Nigeria’s journey to nationhood has been characterised by milestones that demonstrate its strengths, Conoil urged Nigerians to recommit themselves to own and live the country’s national anthem with the resolve “to serve their fatherland with all their strength as one nation, bound in freedom, peace and unity”.

  • Equities regain rally with N53b gain

    Nigerian equities rebounded yesterday as large-cap stocks rallied the market to a net capital gain of N53 billion. Benchmark indices at the Nigerian Stock Exchange (NSE) showed average day-on-day gain of 0.44 per cent, representing net capital appreciation of N53 billion.

    The All Share Index (ASI)-the benchmark index for the equities market, rose from its opening index of 34,951.27 points to close at 35,103.40 points. Aggregate market value of all quoted equities also rose from its opening value of N12.048 trillion to close at N12.101 trillion.

    The upturn was driven by widespread gains, especially within the medium and large-cap stocks including Nestle Nigeria, Dangote Cement, Zenith Bank, International Breweries and Stanbic IBTC Holdings.

    There were 24 gainers against 22 losers. Champion Breweries recorded the highest price gain of 8.14 per cent to close at N2.39 per share. Neimeth International Pharmaceuticals followed with a gain of 4.62 per cent to close at 68 kobo. Linkage Assurance appreciated by 4.55 per cent to close at 69 kobo per share. Fidson went up by 4.52 percent to close at N3.24 per share while C & I Leasing appreciated by 4.32 per cent to close at N1.45.

    On the other hand, Morison led the losers’ chart by 8.33 per cent to close at 66 kobo per share. UACN Property Development Company followed with a decline of five per cent to close at N2.85. University Press depreciated by 4.81 per cent to close at N2.57 per share. Caverton Offshore Support Group declined by 4.59 percent to close at N1.04 while AG Leventis Nigeria declined by 4.41 per cent to close at 65 kobo per share.

    Turnover meanwhile slowed down considerably as volume traded declined by 72.74 per cent to 136.40 million shares worth N1.27 billion in 2.860 deals. Transactions in the shares of Jaiz Bank topped the activity chart with 35.85 million shares valued at N26.1 million. Meyer Paints followed with 20.01 million shares worth N14.01 million. FBN Holdings traded 6.69 million shares valued at N36.78 billion. Diamond Bank traded 5.43 million shares valued at N6.04 million while Access Bank recorded 4.88 million shares worth N46.2 million.

    “Despite the rebound in ASI, we note that market breadth is yet to comfortable crossover to the positive territory. The low level of activity as shown in weaker volume and value traded further suggests sentiment for equities remains low; thus, we expect the market to trade sideways in subsequent sessions pending the release of third quarter earnings,” Afrinvest Securities stated.

     

  • Lafarge Africa to raise N131.65b from shareholders

    Lafarge Africa to raise N131.65b from shareholders

    •To merge with two subsidiaries

    The board of directors of Lafarge Africa Plc yesterday announced that the cement company would be raising N131.65 billion through a rights issue.

    After the end of its extraordinary meeting, directors of Lafarge Africa stated that they have decided that the company will float a rights issue of five new ordinary shares for every nine ordinary shares at a price of N42.50 per share.

    The qualification date for the rights issue has not been decided. However, the company has commenced regulatory approval process for the new issue.

    Also, Lafarge Africa would be undertaking a business combination with two of its wholly owned subsidiaries-United Cement Company and Atlas Cement Company Limited.

    The board of directors of Lafarge Africa has already approved the merger and business combination between Lafarge Africa and the two other companies. The board of directors authorised Lafarge Africa to enter into negotiations necessary for the consummation of the merger.

    The directors had also passed a resolution authorising Lafarge Africa to seek the approval of the Securities and Exchange Commission (SEC) and other relevant regulators for the consummation of the merger.

    LafargeHolcim, which holds the majority equity stake of 72.59 per cent in Lafarge Africa Plc, has indicated it will subscribe fully to its rights. LafargeHolcim will 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.

  • Avon Crowncaps delists shares

    The Nigerian Stock Exchange (NSE) has delisted the name of Avon Crowncaps & Containers Plc from its Daily Official List.

    This followed the conclusion of the voluntary process by Avon Crowncaps, which requested for the delisting of its shares from the NSE.

    The delisting effectively locked in more than N807 million in market valuation of shareholders’ holdings.

    Avon Crowncaps had issued and outstanding shares of 683.97 million listed on the main board of the NSE and its last traded price was N1.18 per share.

  • Equities rally N166b as bargain-hunting thickens

    Equities rally N166b as bargain-hunting thickens

    Market valuation and momentum of activities improved considerably at the Nigerian Stock Exchange (NSE) last week as investors increased bargain-hunting transactions ahead of the third quarter earnings of quoted companies. Benchmark indices showed a week-on-week average gain of 1.38 per cent, equivalent to net capital gain of N166 billion at the end of the week.

    Turnover volume and value rose by 22.2 per cent and 16.2 per cent respectively as investors appeared to seek a balanced portfolio of large-cap and penny stocks. The average year-to-date return improved to 32.05 per cent at the weekend.

    Aggregate market value of all quoted equities rose from the week’s opening value of N12.068 trillion to close at N12.234 trillion. The All Share Index (ASI)-the main price index that doubles as Nigerian sovereign equities index, increased from the week’s opening index of 35,005.57 points to close weekend at 35,488.81 points.

    Most sectoral indices closed on the positive side. The positive overall market situation was driven largely by rallies within the large-cap banking and industrial goods companies. The NSE 30 Index-which tracks Nigeria’s 30 most capitalised stocks, rose by 1.03 per cent last week. The NSE Banking Index posted a return of 2.39 per cent. The NSE Industrial Goods Index appreciated by 2.94 per cent while the NSE Insurance Index rose by 1.41 per cent. However, the NSE Consumer Goods Index declined by 0.23 per cent while the NSE Oil and Gas Index slumped by 3.05 per cent.

    There were 25 gainers against 35 losers last week as against 23 gainers and 45 losers recorded two weeks ago. Low-priced stocks dominated the gainers’ list. Linkage Assurance recorded the highest gain, in percentage terms, of 11.86 per cent to close at 66 kobo. Continental Reinsurance rose by 9.79 per cent to close at N1.57. Guaranty Trust Bank appreciated by 7.03 per cent to close at N39.60. C & Leasing rose by 6.72 per cent to close at N1.27. Skye Bank rose by 5.77 per cent to 55 kobo while Unilever Nigeria Plc rose by 5.50 per cent to close at N44.10 per share.

    On the downside, Nigerian Enamelware recorded the highest drop of 16.65 per cent to close at N23.23. Caverton Offshore Support Group dropped by 9.17 to close at N1.09. Neimeth International Pharmaceuticals declined by 8.57 per cent to close at 64 kobo. Transnational Corporation of Nigeria lost 7.52 per cent to close at N1.23. Cutix slipped by 7.33 per cent to close at N2.53 while AIICO Insurance dropped by 6.90 per cent to close at 54 kobo.

    Total turnover improved to 1.096 billion shares worth N17.86 billion in 16,070 deals last week as against a total of 896.618 million shares valued at N15.368 billion traded in 17,048 deals in the previous week. The financial services sector topped the activity chart with 880.597 million shares valued at N13.614 billion traded in 8,994 deals; representing 80.33 per cent and 76.2 per cent of the total equity turnover volume and value respectively. The industrial goods sector staged a distant second position with 69.17 million shares worth N676.25 million in 881 deals while the consumer goods sector recorded a turnover of 49.29 million shares worth N2.87 billion in 3,077 deals.

    The three most stocks were Guaranty Trust Bank Plc, Access Bank Plc, Jaiz Bank Plc, which altogether accounted for 450.567 million shares worth N10.942 billion in 1,834 deals, representing 41.1 per cent and 61.27 per cent of the total equity turnover volume and value respectively.

    Also traded during the week were a total of 58 units of Exchange Traded Products (ETPs) valued at N90,475 executed in five deals compared with a total of 1,265 units valued at N145,720 transacted last week in eight deals.

    A total of 178 units of Federal Government bonds valued at N163, 407 were traded in two deals compared with a total of 5,290 units valued at N5.030 million traded in 15 deals in the previous week.

  • Red Star Express to transit to holding company

    Red Star Express to transit to holding company

    Red Star Express Plc is concluding arrangements to transit from its group structure to a holding company as the leading logistics and courier company seeks to raise new capital to boost its operations.

    Its Chairman, Dr Mohammed Koguna, said the company plans to change its operating structure from group to holding company to reflect its business expansion and other emerging opportunities.

    According to him, the change to holding company is necessitated by the various initiatives the company seeks to explore and the need to have a more structured accounting system.

    “These are part of the company’s expansion plans aimed at taking full advantage of business opportunities,” Koguna said.

    The company has secured shareholders’ approval to raise transit to holding company and to raise additional capital. The new capital raising could be raised through debt issue, equity issue or a combination of both equity and debt.

    Red Star Express Group includes three subsidiaries – Red Star Freight Limited, Red Star Logistics Limited and Red Star Support Services Limited. The group engages in courier services, mail management services, freight services, logistics, warehousing and haulage.

    Koguna, who owns the largest equity stake in the company, said the group has identified some growth platforms that will become full subsidiaries in the years ahead.

    “We will continue to be innovative so as to ensure the steady growth of the company which would bring about sustained progression in terms of returns on investments.

    Our watchword in the management of both our human and capital resources will be to focus on cost efficiency, and concentrate on opening new horizons that will ensure we remain the market leader in our industry,” Koguna said.

    He assured shareholders of improved returns in the years ahead noting that the interests of shareholders and other stakeholders would be given priority at all times.

    Red Star Express earlier this month distributed about N235.8 million as cash dividend for the 2017 business year, representing a dividend per share of 40 kobo.  Key extracts of the audited report and accounts of the company for the year ended March 31, 2017 showed that turnover rose from N6.63 billion in 2016 to N7.3 billion in 2017.

    Profit before tax increased from N572.11 million to N653.2 million while profit after tax improved from N334.43 million last year to N426.76 million in 2017. The group’s total assets also increased from N3.76 billion in 2016 to N4.43 billion in the year.

  • Nigerian Enamelware doles out 12.67m bonus shares

    Nigerian Enamelware doles out 12.67m bonus shares

    Nigerian Enamelware Plc has distributed 12.672 million ordinary shares of 50 kobo each as bonus shares to its shareholders, proportionately increasing the shareholdings of shareholders without any cash payment.

    The bonus shares were issued by the company by capitalising its reserves, drawing about N6.34 million from its retained earnings to pay for the newly issued shares.

    The bonus shares were distributed to shareholders for one new ordinary share for every five ordinary shares held by each shareholder.

    The additional shares have been listed at the Nigerian Stock Exchange (NSE), thus increasing total outstanding shares of the company to 76.032 million ordinary shares of 50 kobo each.

  • Newrest ASL sells Rwandan subsidiary

    Newrest ASL Nigeria Plc, Nigeria’s leading aviation catering and hospitality company, has sold its Rwandan subsidiary, ASL Rwanda Limited.

    In a regulatory filing at the Nigerian Stock Exchange (NSE), Newrest ASL stated that it had disposed its shareholding in ASL Rwanda, formed in 2013 as a major springboard to the East African economy. With the sale of ASL Rwanda Limited, Newrest ASL now has two  subsidiaries.

    The board of Newrest ASL stated that it will continue to seek profitable investment opportunities in furtherance of the long-term growth objective of the company.

    Newrest ASL-formerly Airline Services & Logistics (ASL) Plc had in 2013 floated two subsidiaries to expand its business into oil and gas catering and provision of in-flight catering in Rwanda. In line with this, ASL then entered into a joint venture agreement with third parties to set up ASL Rwanda and ASL Oil & Gas Logistics Limited as a special purpose vehicle for the Rwandan operations.

  • Lafarge Africa’s board meets on N140b rights issue

    Lafarge Africa’s board meets on N140b rights issue

    The board of directors of Lafarge Africa Plc will tomorrow hold an extraordinary meeting to consider the terms of the cement group’s new capital raising. Shareholders of Lafarge Africa had recently authorised the board of directors of the cement company to raise new equity capital up to N140 billion in a major move to deleverage the cement group.

    Company Secretary, Lafarge Africa Plc, Mrs Edith Onwuchekwa, in a statement at the weekend stated that the directors would be considering the terms of the rights issue at the Tuesday meeting.

    Lafarge Africa plans to raise the new equity fund through a rights issue, implying that only existing and qualified shareholders will participate in the new issue. The shares will be pre-allotted to shareholders on the basis of their shareholdings as at a predetermined date.

    Lafarge Africa had planned to launch its rights issue later this month and finalise the offer by the fourth quarter.

    LafargeHolcim, which holds the majority equity stake of 72.59 per cent in Lafarge Africa Plc, has indicated it will subscribe fully to its rights. LafargeHolcim will 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.

    Balogun said the company has been positioned for better performance in the years ahead as benefits of the turnaround plan launched in the third quarter of 2016 were already counting in the fourth quarter of 2016.

    “We have increased local sourcing of critical materials to lower foreign exchange component of our operational costs. Finally, we are working on a new route to market initiative and improvements in logistics with increased vehicle turn-around and size of fleet of third party providers,” Balogun said.

    Group Managing Director, Lafarge Africa Plc, Mr. Michel Puchercos, said the acquisition of Unicem in 2016 was in line with the group’s capacity expansion plans.

    He noted that doubling of the production capacity of the Mfamosing plant in Calabar to 5.0 million metric tons per annum has contributed significantly to Lafarge Africa’s capacity and footprint in Nigeria as it provides an opportunity to increase the group’s share of the cement market in the South East and South regions.

  • Union Bank opens N50b rights issue

    Union Bank opens N50b rights issue

    Union Bank of Nigeria (UBN) Plc yesterday opened application list for its N50 billion rights issue, paving the way for shareholders to pick up their rights. Application list for the rights issue will close on Monday October 30, 2017.

    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 digitalization and optimize customer experience with investments in customer touch points.

    Chief Executive Officer, Union Bank of Nigeria (UBN) Plc, Mr. Emeka Emuwa, has said the new capital raising is 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 sensitize 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.

    Established in 1917 and listed on the NSE in 1971, Union Bank is a household name and one of Nigeria’s long-standing financial institutions.

    Key extracts of the six-month report of UBN for the period ended June 30, 2017 had shown that gross earnings rose by 23 per cent to N73.7 billion in first half 2017 as against N60.1 billion recorded in first half 2016. Profit before tax rose marginally by six per cent from N8.9 billion to N9.5 billion. Customer deposits grew by 15 per cent to N759.3 billion in 2017 as against N658.4 billion in 2016.