The Nation Newspaper

Category: Equities

  • Nigerian shareholders want judiciary to support market reforms

    Nigerian shareholders want judiciary to support market reforms

    As the Securities and Exchange Commission (SEC) steps up enforcement actions on erring operators, shareholders have urged the judiciary to play constructive and supportive roles to ensure the success of capital market reforms.

    Shareholders said the judiciary should be accord special interests to cases of investors’ protection, market integrity and professional ethics as these are key elements that make up investors’ confidence; the driving force for capital market growth.

    According to them, judges should adjudicate on capital market-related cases promptly and should also not grant unnecessary orders in favour of operators to shield them from punishment after committing infractions in the market.

    National chairman, Proactive Shareholders Association of Nigeria, Mr. Oderinde Taiwo, said the judiciary should give speedy hearing to capital market related cases.

    “The regular courts should also cooperate with special courts such as the Investment and Securities Tribunal (IST) in resolving capital market cases. A situation whereby IST, which is equivalent to a high court, gives an order and another high court gives a counter order is not good for the market,” Taiwo said.

    President, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie, said judges should base their judgements on merits of each case instead of indiscriminately issuing orders.

    According to him, apart from fast-tracking the judgement delivery process, judges should listen to arguments of both parties and deliver their judgements based on merits.

    “When any offender is brought before any court, the court should be able to look at the case dispassionately and ask the defendant to go and face the music rather than delay the case unnecessarily or issue orders preventing the defendant from prosecution,” Okezie said.

    Mr. Moses Igbrude of Independent Shareholders Association of Nigeria (ISAN), said investors had been frustrated and discouraged due to the delay in getting justice.

    “We are now calling on the judiciary that in order to restore investor confidence and as part of their continued contribution to the growth of the market, capital market-related cases should be dispensed with speed,” Igbrude said.

    According to him, in the new dispensation, the judiciary should discourage the issuance of orders to capital market operators, who, after violating rules, will run to the courts for cover.

    “This has been happening and I believe given the high expectations for change in the entire country, the courts should no longer grant orders to those who have deliberately committed offences and when they are asked to face the music, they run to the court for protection that they do not deserve,” Igbrude, who is also the chairman of Consumer Rights Awareness Advancement & Advocacy Initiative (CRAAAI), said.

    The shareholders spoke against the background of recent enforcement actions by SEC. The Investment and Securities Act (ISA), which enshrines investor’s protection as the core mandate of SEC, gives it wide-ranging powers to protect investors from any form of abuse.

    SEC is statutorily empowered to “ intervene in the management and control of capital market operators which it considers has failed, is failing or in crisis including entering into the premises and doing whatsoever the Commission deems necessary for the protection of investors” while it can also “in furtherance of its role of protecting the integrity of the securities market, seek judicial order to freeze the assets (including bank accounts) of any person whose assets were derived from the violation of this Act, or any securities law or regulation in Nigeria or other jurisdictions”.

    In furtherance of the provisions of the ISA, SEC recently came down heavily on one of Nigeria’s leading investment banking groups with the suspension of the BGL Group and its subsidiaries from all capital market activities.

    SEC said its decisions were based on the “report of a detailed investigation into the various complaints received from investors against subsidiaries of BGL Group”.

    SEC had late April intervened in the operations of BGL Group Plc, suspended its board and set up an interim management board for the group. The interim management board, headed by a former president of Chartered Institute of Stockbrokers (CIS), Mr Oladipo Aina, was mandated to conduct full investigation into the operations of BGL Group. Other members of the interim board were Mr. Abubakar Ambursa, Mrs. Hafsat Rufai, Ms. Temitayo Siyanbola and Ms. Tonne Ladipo-Ajayi.

    On the basis of the investigation report, SEC yesterday announced the suspension of BGL Asset Management Limited, BGL Capital Limited and BGL Securities Limited from all capital market activities.

    The Commission also directed that all major officials and sponsored individuals of BGL Asset Management Limited, BGL Capital Limited and BGL Securities Limited whose particulars are contained in the Commission’s record as at December 2014 be suspended from performing any capital market activity.

    SEC particularly cited Mr. Albert Okumagba, the group managing director of BGL Group and directed that Okumagba, who was the president of CIS before the April sack of the board, should cease to be a registered sponsored individual with the Commission following the withdrawal of the registration of BGL Plc as a capital market operator.  With this directive, Okumagba, one of the most influential capital market operators, will therefore no longer be entitled to carry out capital market activities.

    Besides, the apex capital market regulator stated that it has referred what it described as “suspicious transactions” observed in the course of the investigation to the appropriate law enforcement agencies for further investigation.

    According to the statement, BGL Asset Management Limited, BGL Capital Limited and BGL Securities Limited and all individuals involved in the management of the companies have also been referred to the Administrative Proceedings Committee (APC) of SEC for further trial.

    In an affidavit deposed to by SEC, the Commission said BGL was having liquidity problems and has been running at a loss to the tune of over N48 billion as at December 31, 2014.

    SEC stated that BGL is indebted to investors who complained to the tune of N5.769 billion and that the indebtedness has precluded the company from performing its obligations to its clients and investors.

  • Nigerian equities drop by 1.9% over uncertainties

    Nigerian equities dropped by about 1.88 per cent this week as investors continued to wait for the macroeconomic directions of the new government.

    The All Share Index (ASI), the benchmark index that tracks prices of all quoted equities on the Nigerian Stock Exchange (NSE), recorded a week-on-week decline of 1.88 per cent to close the week at 33,664.91 points as against its opening index of 34,310.37 points.

    Aggregate market value of all quoted equities on the NSE declined by N168 billion from N11.659 trillion to N11.491 trillion.

    Analysts said the market performance was moderated by the uncertainties over the macroeconomic policy directions of the new government as President Muhammadu Buhari assembles his economic team.

    “Additionally, foreign portfolio investors whose participation in the Nigerian market accounted for over 55 per cent from 2011 to 2014 appear to have remained on the side line amid uncertainties on exchange rate and economic reforms,” analysts at Afrinvest Securities stated in post market review yesterday.

    Total turnover stood at 1.22 billion shares worth N16.96 billion in 19,847 deals this week in contrast to a total of 1.8 billion shares valued at N22.11 billion that were traded in 17,337 deals two weeks ago.

    Financial services sector remained the dominant sector with a turnover of 935.23 million shares valued at N9.26 billion traded in 11,066 deals; representing 76.58 per cent and 54.58 per cent of the total equity turnover volume and value respectively.

    The trio of Zenith International Bank Plc, Diamond Bank Plc and United Bank for Africa Plc jointly accounted for 357.004 million shares worth N4.03 billion in 3,021 deals, representing 29.23 per cent and 23.77 per cent of the total equity turnover volume and value respectively. Analysis of price trend indicated that 27 stocks appreciated while 47 equities depreciated.

    “With five days since his ascendency, the only noteworthy action taken by the president relates to insecurity and ending insurgency in the country. Nevertheless, we believe the President must set the tone for the market by making a clear pronouncement on critical concerns in the economy. Chief among these include the oil and gas sector and subsidy removal, exchange rate and the framework for monetary policy, addressing the power sector crisis and the future of infrastructure in Nigeria,” Afrinvest securities stated.

    According to analysts, political risk, credit risk, re-investment risk, interest rate risk and exchange rate risk are the main factors that continue to define investors’ actions.

    Analysts noted that recent considerations by the United States of America to raise interest rates may divert funds from the Nigerian capital market, hence a likely reduction in the rate of foreign participation in the bond market.

  • Skye Bank declares 661m bonus shares as total assets hit N1.4tr

    Skye Bank declares 661m bonus shares as total assets hit N1.4tr

    The board of Skye Bank Plc has recommended distribution of a total of 660.9 million ordinary shares of 50 kobo each as bonus shares to shareholders as the bank grew its balance sheet by about 27 per cent to N1.42 trillion in 2014.

    According to the recommendation released yesterday, shareholders would receive a bonus share for every 20 ordinary shares held by the close of register for the scrip issue. The bonus shares indirectly gave some N1.43 billion to shareholders, according to current valuation of the stock.

    Key extracts of the audited report and accounts of Skye Bank for the year ended December 31, 2014 showed that group total assets rose by 26.8 per cent from N1.12 trillion in 2013 to N1.42 trillion in 2014. Total liabilities also rose by 29.6 per cent to N1.29 trillion in 2014 as against N995 billion recorded in 2013. Loans and advances portfolio grew by 18.4 per cent from N549.9 billion to N651.3 billion. Total equity also increased modestly by 8.9 per cent to N132.3 billion in 2014 as against N121.4 billion in 2013.

    However, the bank’s top-line recorded marginal growth of 3.3 per cent from N132.4 billion in 2013 to N136.7 billion in 2014. Profit before tax meanwhile declined from N19.6 billion to N10.5 billion while profit after tax dropped to N9.7 billion in 2014 as against N18.5 billion reported in 2013. The bank meanwhile grew retained earnings by 71.1 per cent to N33.7 billion in 2014 as against N19.7 billion recorded in 2013.

    The bank indicated that the decline in profit was due to some developments during the year, including elevated impairment charges, regulatory payments, and higher operating cost. It however noted that substantial profit retention underlined the group’s pursuit of growth in a stable, strategic and an enduring manner.

    Commenting on the earnings report, group managing director, Skye Bank Plc, Mr. Timothy Oguntayo said the bank braced the challenging operating environment to carefully grow its risk assets portfolio while attaining a 15.7 per cent growth in deposits.

    He described the performance in 2014 as fairly decent adding that the bank has continued to support customers in critical and productive sectors of the economy.

    Oguntayo pointed out that the recent acquisition of Mainstreet Bank Limited, which has resulted into a much larger franchise of over 450 branches, provides the bank with enhanced capacity to provide easier access to its teeming customers, and explore various opportunities in diverse segments of the Nigerian economy.

    He assured shareholders and other stakeholders that the synergies and economies of scale expected from the acquisition will begin to manifest from the current financial year, while promising current and potential customers of consistent quality service on all electronic platforms and in the business locations.

  • Senate confirms Gwarzo as SEC’s DG

    The Senate yesterday unanimously confirmed the nomination of Mallam Mounir Gwarzo as the Director General of the Securities and Exchange Commission (SEC).

    The confirmation yesterday at the plenary of the upper legislative chamber followed consideration of the screening report of the Senate Committee on Capital Market headed by Senator Ayo Adeseun which affirmed Gwarzo as the best candidate for the position.

    The committee had earlier screened Gwarzo and expressed its satisfaction with his nomination and therefore called on the whole house to confirm his nomination by President Goodluck Jonathan. Thereafter, some members of senate including the three senators from Kano State-Gwarzo’s state of origin, Senators Bello Dalhatu Gwarzo, Kabiru Gaya and Bashir Garba Lado also spoke in favour of confirmation of the new DG of SEC.

    Senate Leader Senator Victor Ndoma-Egba and a former Chairman of the Senate Committee on Capital Market, Senator Ganiyu Solomon from Lagos also openly supported his nomination before the Senate President, Senator David Mark put the motion to vote. The motion was then unanimously supported without a single opposition.

    In his comment, Mark described Gwarzo as ‘’a round peg in a round hole’’ and expressed the hope that he would bring his experience to bear on the job.

    In a statement made available by SEC, the Commission said Gwarzo, 52, a fellow of the Chartered Institute of Stockbrokers (CIS), has had the unique opportunity of working as an operator and regulator in both the primary and secondary markets of the Nigerian capital market, and out of his 25 years working experience, 20 were spent in the Nigerian capital market.

    Prior to joining the board of SEC, Gwarzo’s working career spanned various organizations including Ministry of Trade, Kano State, Nigerian Stock Exchange (NSE), Century Merchant Bank Limited, Empire Securities Limited, Securities and Exchange Commission, Federal Mortgage Bank of Nigeria and MTL Global Investment Limited.

    Section 5, subsection 1 of the Investments and Securities Act (ISA), the main body of laws regulating the capital market, stipulates that the Director-General and the three full time Commissioners shall be appointed by the President upon the recommendation of the Minister and confirmation by the Senate.

    The law provides for five-year tenure for director general of SEC in the first instance, renewable for similar term of five years only.

    Gwarzo has attended several domestic and international courses including Securities Market Regulation by the United States Securities and Exchange Commission (US SEC), Development of Bonds Markets in Johannesburg, South Africa, Assets Backed Securities and Mortgage Securitization in Singapore, Operational and Credit Risk Management in Dubai and Advanced Management Programs (AMPS) at INSEAD, Paris as well as at SAID Business School Templeton College, University of Oxford, United Kingdom.

  • Access Bank’s shareholders laud N13.7b dividend payout

    Shareholders of Access Bank yesterday approved the recommendation by the board for a distribution of N13.73 billion as cash dividends for the 2014 business year as the management of the bank assured that the bank is well placed to brace industry headwinds and deliver better returns to shareholders.

    At the annual general meeting in Lagos, shareholders commended the directors’ decision to distribute about one-third of the year’s net profit as cash dividends, noting that the directors balanced the shareholders’ interest with future growth need.

    The board of the bank had recommended distribution of additional N8.01 billion as cash dividends for the 2014 business year, bringing total dividend for the year to N13.73 billion. Accordingly, shareholders would receive a final dividend per share of 35 kobo in addition to interim dividend of 25 kobo paid earlier, totaling a dividend per share of 60 kobo. The company had paid the same rate for the 2013 business year. The final dividend became payable immediately it was approved yesterday.

    President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Farouk Umar, commended the improvement in the performance of the bank in 2014 in spite of industry-wide headwinds occasioned by tight regulatory policies.

    He noted that the total dividend payout of 60 kobo was comparatively better than industry average, expressing optimism that the ongoing growth initiatives including branch expansion and diversification of businesses would increase performance in the future.

    In his remarks, president, Progressive Shareholders Association of Nigeria (PSAN), Mr Boniface Okezie said the 2014 performance was commendable and urged the bank to sustain the growth tempo.

    In his address to the shareholders, chairman, Access Bank Plc, Mr Gbenga Oyebode, assured that the bank would continue to drive its growth by maintaining strong capital and liquidity and ensuring effective risk management to reduce cost.

    According to him, Access Bank remains committed to the goal of reaching the pinnacle in Nigeria and Sub-Saharan Africa financial markets.

    Managing director, Access Bank Plc, Mr Herbet Wigwe, said the bank’s $400 million Eurobond and recent N58 billion rights issue would put the bank in good stead to stay ahead of regulatory changes and implementation of new standards.

    He said the bank was proactive with its capital raising plan in the immediate past year adding that the bank would maintain strong risk management strategy to continue to ensure a healthy financial institution.

    He said the bank would place more emphasis on retail business and continue to improve customer satisfaction across all business lines to enhance stakeholders return on investment.

  • Fidson’s MD wins top 25 CEO awards

    Fidson’s MD wins top 25 CEO awards

    Managing Director, Fidson Healthcare Plc, Dr Fidelis Ayebae was again for the second consecutive year voted as one of the top 25 chief executives of quoted companies in Nigeria at the latest edition of the BusinessDay Top 25 CEO Awards.

    The awards ceremony for the 2014 financial year was held recently in Lagos. Ayebae had earlier emerged winner of the 2013 edition of the awards.

    The awards’ committee picked Ayebae because of his company’s performance in the capital market and contributions to the country’s economy.

    Fidson has sustained appreciable growths and consistent dividend payment over the years, a performance record that has earned the indigenous healthcare company a consistent position in the top league of the highly fragmented industry.

    In his remarks, Ayebae, who was represented by the company’s operations director, Mr. Abiola Adebayo, said the award was an acknowledgment of the company’s commitment to adding value to the lives of Nigerians through the provision of quality healthcare solutions.

    “As a company, we are motivated to up our ante and continue to deliver on these promises,” Ayebae said.

    The Top 25 CEO Awards ceremony, organised by the BusinessDay research and intelligence unit, focuses on the chief executives officers of companies listed on the Nigerian Stock Exchange (NSE), who aroused positive interests in the Nigerian capital market, as well as share price appreciation.

    According to the organisers of the event, the Top 25 CEOs Awards is meant to appreciate the contributions of the 25 CEOs who contributed the most to the growth of the capital market in a particular financial year. Winners of the awards are selected from over 200 listed companies on the NSE after they have successfully met the criteria set up by the Awards Committee.

    In the latest earnings report, shareholders of Fidson will receive a 50 per cent increase in cash dividend this year as the company’s earnings firmed up. The board of directors of the company recommended distribution of N225 million to shareholders as cash dividends for the immediate past business year ended December 31, 2014. Shareholders will receive a dividend per share of 15 kobo as against 10 kobo received in the previous year.

    The dividend increase was directly related to the improvements in the earnings of the healthcare company. Key extracts of the audited report and accounts of Fidson Healthcare for the 2014 business year showed significant growths in key fundamentals.

    The company’s profit before tax rose by 249 per cent from N249.6 million in 2013 to N870.8 million in 2014. Profit after tax jumped by 308 per cent to N631.8 million in 2014 as against N154.9 million recorded in 2013. Earnings per share thus increased from 10 kobo in 2013 to 42 kobo in 2014.

     

     

    Fidson had relied on impressive cost management and improving operating efficiency to drive the bottom-line. While its turnover rose by five per cent from N9.25 billion to N9.73 billion, it moderated cost of sales to four per cent growth and reduced operating expenses by nine per cent.

     

     

  • Vitafoam to distribute N246m, 164m shares to shareholders

    Vitafoam to distribute N246m, 164m shares to shareholders

    Shareholders of Vitafoam Nigeria Plc would receive about N246 million in cash and additional 164 million shares as cash dividends for the immediate past business year.

    The dividend recommendation released by the board of directors of the foam-manufacturing company indicated that shareholders would receive a dividend per share of 30 kobo and bonus share of one share for every five ordinary shares held by shareholders.

    The much-awaited earnings report for the year ended September 30, 2014 triggered a bullish rally on the stock at the weekend. Audited report and accounts for the year ended September 30, 2014 showed that profit after tax rose by 67 per cent to N659 million in 2014 as against N395 million recorded in the previous year. Earnings per share subsequently rose by 69 per cent from 48 kobo in 2013 to 81 kobo per in 2014. Shareholders of the company are expected to meet on the earnings report and dividend recommendation on June 4, 2015.

    Management report indicated that the performance was due to increased innovation and improved internal efficiencies. As part of the strategy to strengthen its African operations, Vitafoam had installed modern equipment in its plant in Sierra Leone, which serves all the neighbouring countries including Guinea and Gambia.

    Only recently, its subsidiary, Vitapur Nigeria Limited acquired modern equipment called SAIT Advanced Polyurathane to boost production of quality pallets and reinforce capacity utilization.

    However, it should be noted that the audited report had been delayed by what the board of the company described as accounting software. The board of directors had earlier indicated that it would consider the accounts and report and make dividend recommendation at its meeting in December 2014.

    According to the company, the delay was as a result of challenges associated with its migration from Sage Line 500 accounting software to the newly acquired Sage ERP X3 Package. Vitafoam stated that the implementation of the new software impacted the timelines previously set for the preparation and audit of the year end accounts.

    However, the release of the audited earnings report came almost simultaneously with the announcement of the retirement of the group managing director and group finance director of the company. The board of directors announced the appointment of Mr. Taiwo Adeniyi as the acting group managing director following the approval of the retirement of Mr. Joel Ajiga. Both Ajiga and Mr. Brabindoh Ogun, the group finance director, are expected to retire on October 23, 2015. Ajiga has since commenced his pre-retirement leave with effect from April 23.

     

     

    Adeniyi holds a BSc Degree (Chemistry) and MSc Degree (Pharmaceutical Chemistry) from the University of Lagos and MSc Degree (Engineering and Logistics) from the University of Warwick, United Kingdom. He joined the Vitafoam Group in 2007 and was appointed to the board in July 2012. Prior to his new appointment, he was the group technical & development director.

     

  • Sterling Bank assures shareholders of better returns

    Sterling Bank assures shareholders of better returns

    The management of Sterling Bank Plc has assured that the bank would continue to build up shareholders’ value in spite of envisaged challenges in the banking industry.

    Managing director, Sterling Bank Plc, Mr. Yemi Adeola, said the bank’s performance in 2014 showed the strengths of its resilient growth model and its ability to continue to deliver value for all stakeholders.

    Addressing shareholders at the Annual General Meeting (AGM) in Lagos, Adeola assured that a proposed multi-currency debt capital of $200m would improve the bank’s fortunes substantially.

    According to him, the 2014 financial performance lays credence to the commitment of the Sterling Bank team to its collective goals and the resilience of its business model.

    He outlined that the bank has invested substantially in the upgrade of its technology infrastructure and re-engineering, centralization and automation of processes to improve customer experience.

    He added that the credit processing engine for the retail and Small and Medium Enterprise (SME) space was re-engineered to streamline the process from origination to disbursement to enhance service delivery noting that various projects are at varying stages of implementation.

    He however pointed out that the full adoption of Basell 11 requirements could drive capital build up and slower loan growth in the banking industry while more efficient management of and slower growth in government revenue would see greater competition for private sector deposits leading to higher deposit rates.

    “While the economic landscape may be challenging, I strongly believe that the bank is on sound financial footing, given its stronger capital position, asset quality and dedicated workforce to advance its growth plans,”  Adeola said.

    Sterling Bank’s shareholders received 6.0 kobo dividend per share. Though the dividend payment reduced by 76 per cent against 25 kobo paid for the previous year, the bank was able to grow its profit by nine per cent in 2014.

     

     

    The bank’s balance sheet also showed that net loans and advances increased by 15.4 per cent to N371.2 billion in 2014 compared with N321.7 billion in 2013, while customer deposits rose by 15 per cent to N655.9 billion as against N570.5 billion just as shareholders’ funds increased by 33.5 per cent from N63.5 billion to N84.7 billion. Total assets closed 2014 at N824.5 billion, representing an increase of 16.5 per cent on N707.8 billion recorded in 2013.

    Chairman, Sterling Bank Plc, Mr. Asue Ighodalo said the bank was very optimistic about future prospects based on the strategic alliances being embarked by the board and management.

     

     

     

    Major highlights showed that net interest income leapt by 20.1 per cent to N43.0 billion in 2014 as against N35.8 billion recorded in 2013. This was driven mainly by an 11.4 per cent growth in interest income to N77.9 billion, which far outweighed the 2.2 per cent increase in funding costs to N34.9 billion. This underlined the increasing cost efficiency of the lender as cost of funds dropped from 6.1 per cent in 2013 to 5.3 percent in 2014. Similarly, non-interest income grew by 18.3 per cent from N21.8 billion in 2013 to N25.7 billion in 2014. This was boosted by an 82.2 per cent growth in net trading income to N6.8 billion.

    Shareholders who spoke at the annual general meeting lauded the bank’s performance, even as they tasked the management on the need to improve on the performance.

     

  • Stock Exchange mulls delisting rules

    Stock Exchange mulls delisting rules

    • Sets court-ordered meeting, 75% approval as new criteria for delisting

    With the number of delisting significantly higher than listing in recent years, the Nigerian Stock Exchange (NSE) is considering new rules and regulations that will equate voluntary delisting from the Exchange to the same level as major corporate changes such as mergers, acquisition and share capital structure.

    The main highlights of a new draft of rules and regulations on delisting from the daily official list of the Exchange include obtaining a court order for the convening of shareholders’ meeting for consideration of any scheme related to the delisting and the requirement of at least 75 per cent approval of the resolution for the delisting.

    According to the new rules, any issuer that intends to delist its shares from the daily official list of the Exchange shall convene a meeting of its board of directors, at which the board shall consider and pass a resolution recommending to the shareholders of the issuer that the issuer should be voluntarily delisted. The board will also pass a resolution on an annual general meeting (AGM) or extraordinary general meeting (EGM) at which the board’s recommendation will be considered by the shareholders for approval.

    Subsequently, the company shall notify the Exchange of its board’s recommendation to delist and shall submit a copy of the board’s resolution in that regard, a copy of the draft notice of the AGM or EGM and the request for approval to publish the notice of the AGM or EGM at which the shareholders will consider the board’s recommendation to voluntarily delist the company in at least two national daily newspapers, at least 21 days before the AGM or EGM.

    After receiving the Exchange’s approval, the company shall convene an AGM or EGM, during which a resolution for voluntarily delisting the issuer will be proposed and passed, if agreeable to the shareholders. The Exchange shall be invited to, and be represented at the AGM or EGM.

    “A resolution to voluntarily delist an issuer shall be validly passed if supported by at least seventy-five percent of members present and voting during the AGM or EGM, in person or by proxy,” the rules stated.

    Besides, the company’s board of directors shall appoint professional advisers who will provide all relevant professional support as well as obtain all relevant approvals with respect to the delisting.

    The company shall also apply for a court-ordered meeting of the shareholders to consider and if thought fit, approve where required, any scheme and other relevant matters. After receiving the court’s order, the issuer shall convene the court-ordered meeting of the shareholders, and the Exchange shall be invited to, and be represented at the meeting.

    After holding the court-ordered meeting, the company shall submit its resolutions passed at the meeting to the Court for sanction.

    At the Exchange, the dealing member concerned shall submit to the Exchange an application on behalf of the company, to delist its shares from the daily official list of the Exchange, and the application shall be submitted with a delisting fee as determined from time to time by the Exchange.

    The company is also required to set aside funds sufficient to purchase the interest of all shareholders who expressed their dissent to the resolution to delist the company, and the funds shall be domiciled with a Registrar or a Custodian duly registered by and in good standing with the Securities and Exchange Commission (SEC).

    “The share price at which the issuer purchases dissenting shareholders’ interests shall not be less than the highest price at which the Issuer traded in the six months immediately preceding the date on which the notice of the AGM or EGM at which the resolution to delist the issuer was issued,” according to the rules.

    The Registrar or Custodian is expected to open and publish a register of dissenting shareholders which shall be kept open for at least three years. The list of dissenting shareholders shall also be published on the company’s website for the same duration, and submitted to the Exchange within three months of the shareholders’ expression of their dissent.

    Thereafter, the entire listed shares of the company shall be delisted from the daily official list upon receipt of evidence from the Registrar or Custodian that the interests of all dissenting shareholders have been purchased by the company.

    However, except a period of three years has elapsed since the initial listing of its shares; the Exchange shall not consider a company’s application for delisting of its shares.

    Also, a delisted company can only seek to list its shares again on the Exchange after three years from the date of its delisting.

     

  • Sterling Bank Plc pays 6 kobo dividend

    Sterling Bank Plc pays 6 kobo dividend

    STERLING Bank Plc shareholders received 6 kobo dividend per share yesterday shortly after the conclusion of the bank’s 53rd Annual General Meeting in Lagos.

    Though the dividend payment reduced by   76%, 0.6 kobo from 0.25 kobo per share paid to investors a year earlier, the bank was able to grow its profit by 9% in 2014.

    The Bank’s Balance Sheet also showed that net loans and advances increased by 15.4 per cent to N371.2 billion in 2014 compared with N321.7 billion in 2013, while customer deposits rose by 15 per cent to N655.9 billion as against N570.5 billion just as shareholders’ funds increased by 33.5 per cent from N63.5 billion to N84.7 billion. Total assets closed 2014 at N824.5 billion, representing an increase of 16.5 per cent on N707.8 billion recorded in 2013.

    While declaring the dividend, Asuen Ighodalo said the bank was very optimistic about future prospects based on the strategic alliances being embarked by the board and management.

    Echoing similar sentiment, the bank’s Managing Director, Mr. Yemi Adeola, said the bank’s performance shows the strengths of its resilient growth model and its ability to continue to deliver value for all stakeholders, even as he assured that a proposed multi-currency debt capital of $200m in the coming year would improve the bank’s fortunes substantially.

    Major highlights showed that net interest income leapt by 20.1 per cent to N43.0 billion in 2014 as against N35.8 billion recorded in 2013. This was driven mainly by an 11.4 per cent growth in interest income to N77.9 billion, which far outweighed the 2.2 per cent increase in funding costs to N34.9 billion. This underlined the increasing cost efficiency of the lender as cost of funds dropped from 6.1 per cent in 2013 to 5.3 percent in 2014. Similarly, non-interest income grew by 18.3 per cent from N21.8 billion in 2013 to N25.7 billion in 2014. This was boosted by an 82.2 per cent growth in net trading income to N6.8 billion.

    Speaking separately, the arrowhead of the shareholders’ group, including Sir Sunny Nwosu, Chief Timothy Adesiyan, Pa Sofunde, Brigadier Ikwe, Oderinde Taiwo, lauded the bank’s performance, even as they tasked the management on the need to improve on their system.