Category: Equities

Digital assets and cryptocurrency will consolidate their record-breaking performance in 2021.

Chief Executive Officer, Eagle Global Markets (EGM), Gbite Oduneye, in his  yearly review, said that while 2020 was a difficult time for businesses across many industries, it brought great upswing to digital assets and crypto-based companies, which grew in popularity last year.

According to him, not only did Bitcoin surge past its previous all-time high of $19,783.21 to a new high of $28,600 and climbing, Ethereum, the second-largest digital asset by market cap, launched its Ethereum 2.0 protocol, which hosts the trading activity for most of over 6000 digital tokens in existence.

He however noted that in spite of these advancements, there were lingering impediments, especially concerning security and regulation.

“As we enter the administration transition in 2021, critical appointments to prominent roles in agencies such as the Securities and Exchange Commission (SEC) will impact digital assets and Cryptocurrency. Most analysts however believe that the only way is up for the world of crypto,” Oduneye said.

He noted that the EGM provides opportunities to traders in all kinds of Cryptocurrency CFDs-Bitcoin, Ethereum, Litecoin and Ripple on its state-of-the-art MetaTrader 4 platform.

“From a financial point of view, there’s been ups and downs. Markets fell fast, the fastest fall in the stock market history since the Great Depression of 1929 all thanks to COVID-19 and the crash it sparked off in February that continued on through April. However, 2020 also brought along unprecedented surplus programs and monetary injections into the global economy that sent some assets to their all-time highs,” Oduneye said.

On January 2nd, 2020 gold prices were $1528.95 and by August 5th prices had broken past the $2000 barrier, the S&P 500 has surged almost 65 per cent since its March low and is on track to finish the year up nearly 14 per cent, Bitcoin also broke its all-time-high and almost quadruped in value.

He noted that because of the extreme volatility the markets, it had been a wonderful year for EGM especially since the lockdowns encouraged a spike in investment interest and new traders, resulting in a surge in trading activity globally.

“We recorded a 40 per cent increase in trading volume and revenue breaking our all-time record. This is mostly thanks to our vast experience in the industry and most importantly, our objective to always bring optimal value to our traders through the smart combination of cutting edge technology and a deep-set interest in their financial freedom,” Oduneye said.

He pointed out that as part of the company’s corporate social responsibility, and in an effort to make a positive impact during the COVID-19 pandemic, EGM partnered with its friends at Kuda Bank and Lagos Food Bank to assist in feeding citizens of Lagos who were going through hardship in these difficult times.

“We reached out to every trader on our platform to chip in and this, combined with a portion of their profits from every trade that was made on their platform, was sufficient enough to put a wide smile on many faces. We are always looking for ways to connect with the community and present a united front of hope, generosity and compassion,” Oduneye said.

He noted that there are so many worthy organizations and charities that need support, assuring that EGM will continue to do its small part to support the local food banks and those suffering from the pandemic.

The council of the Nigerian Stock Exchange (NSE) yesterday announced the chief executives of the emerging companies after the conversion of the NSE from a mutual, member-owned, not-for-profit company to a profit-making, public limited liability company owned by shareholders.

The council stated that the ongoing conversion, known as demutualisation, will lead to unbundling of the NSE into four companies, a non-operating, holding company and three subsidiaries.

Under the demutualisation plan, a new non-operating holding company, the Nigerian Exchange Group Plc (NGX Group) has been created. The group will have three subsidiaries – Nigerian Exchange Limited (NGX), the operating exchange; NGX Regulation Limited (NGX REGCO), the independent regulatory arm; and NGX Real Estate Limited (NGX RELCO), the real estate company – forming the group.

The NSE confirmed that the four entities have been  registered at the Corporate Affairs Commission (CAC).

The Chief Executive Officer of NSE, Mr Oscar Onyema, will lead the Nigerian Exchange Group Plc as Group Chief Executive Officer. Temi Popoola, a Chartered Financial Analyst (CFA) and Chief Executive Officer, West Africa, Renaissance Capital, will lead Nigerian Exchange Limited as Chief Executive Officer. Incumbent Executive Director at NSE, Tinuade Awe, will be the Chief Executive Officer of NGX Regulation Limited.

The appointments are, however, still subject to the approval of the Securities and Exchange Commission (SEC).

Access Bank Plc has strengthened its operations in Zambia with the completion of acquisition of Cavmont Bank Limited.

The Board of Access Bank yesterday affirmed that Access Bank’s Zambian subsidiary, Access Bank (Zambia) Limited has completed the acquisition of Cavmont Bank Limited (Cavmont), following fulfilment of the key conditions precedent, including regulatory approvals.

In a regulatory filing signed by Company Secretary, Access Bank Plc, Sunday Ekwochi, the bank stated that the merger of Cavmont into Access Bank Zambia is expected to take place before the end of this month.

The bank noted that with the merger, Access Bank Zambia will emerge as a stronger and well-capitalised banking franchise with improved scale and capacity to deliver sustainable and best-in-class financial services in the Zambian market.

“Growing our presence in Zambia remains a strategic priority for Access Bank and with the conclusion of the proposed merger with Cavmont, the bank looks forward to realising the synergies from the transaction and achieving further growth of the combined platform to the benefit of all stakeholders,” Access Bank stated.

By Taofik Salako, Deputy Group Business Editor

Shareholders of Union Diagnostic and Clinical Services Plc are scheduled to meet this month to consider and vote on a proposal by a major shareholder in the healthcare company to buy out minority shareholders.

A healthcare investment firm, Cedar Advisory Partners Limited had launched a N492.75 million bid to acquire all equities stakes held by minority shareholders in Union Diagnostic and Clinical Services Plc.

Cedar, which holds 20.04 per cent equity stake Union Diagnostic, is offering to acquire the entire 39.62 per cent equity stake held by sundry minority retail shareholders. Cedar seeks to increase its shareholdings to 59.66 per cent after the transaction, making it the single largest shareholder in the company.

The Board of Union Diagnostic confirmed that it has received a binding offer from Cedar, seeking to acquire a total of 1.408 billion ordinary shares of 50 kobo each held by all minority shareholders at an offer price of 35 kobo.

Cedar holds 711.92 million ordinary shares of 50 kobo each. The transaction is being proposed through a scheme of arrangement.

At a court-order meeting scheduled for Ikeja, Lagos, shareholders are expected to vote on approval of scheme of arrangement dated Monday, December 7, 2020 and authorise the directors to consent to any modifications of the scheme of arrangement that the Federal High Court or any regulatory authority may deem fit to impose or approve.

For the purpose of giving effect to the scheme in its original form or with or subject to such modification, addition and condition agreed between the company and holders of its ordinary shares and approved or imposed by the court, shareholders are also expected to approve that the scheme shares as defined in the scheme document be transferred to Cedar Advisory Partners Limited and as such the holders of the scheme shares shall be paid a cash consideration as defined in the scheme document by Cedar Advisory Partners Limited for the transfer of the scheme shares.

According to the proposal, as consideration for the transfer of the scheme shares, each holder of the scheme shares shall receive 35 kobo per share.

The meeting is also expected to authorise the Board of Directors of Union Diagnostic to take steps and to consent to any modification of the scheme of arrangement that the Federal High Court shall deem fit to impose or approve.

The offer price of 35 kobo per share represented a premium of 75 per cent on the company’s last closing price on March 16, 2020 and 70.1 per cent on 90-day volume weighted average share price.

Directors of Union Diagnostic have said they had  considered the offer and recommended the offer to shareholders for consideration at the court ordered meeting, subject to the approval by relevant regulatory authorities.

By Taofik Salako, Deputy Group Business Editor

Giving.ng, a crowdfunding platform, has introduced a new way to raise funds for social impact projects to the Executive Masters in Business Administration (EMBA) students at the Lagos Business School (LBS).

Chief Executive Officer, Sterling One Foundation, Mrs. Peju Ibekwe, urged Nigeria’s top MBAs to join the effort to reduce poverty and create a better world by becoming part of the movement focused on enabling long-term positive change through crowdfunding.

She spoke at a dinner hosted by the EMBA 24 class in Lagos in honour of EMBA 23 and 24 classes as well as the distinguished faculties of the LBS.

EMBA 24 class chose the theme, A whole new world – Embracing the change & transformation for the annual dinner in view of the pandemic and its impact on the global economy.

Ibekwe invited the LBS community to join the platform as individuals and corporate partners, noting that Giving.ng has been able to raise funds from various partners and donors to assist people grow more food, educate children, help people lead healthy and productive lives while putting an end to poverty.

She explained that the platform crowdfunds for social impact projects and causes that matter.

“It represents a journey to change lives in communities, encouraging talents, promoting entrepreneurship, and supporting economic growth,” Ibekwe said.

She enjoined the new MBA graduates to join the community of Nigerians at home and abroad that are giving a little to change a lot and making a positive impact that brings hope and succour to the underserved.

Giving.ng decided to raise a N1 billion fund to support the healthcare workers who are helping people infected with the COVID-19 to get better.

The fund enabled payments of a hazard allowance of N100,000 to frontline healthcare workers as opposed to their statutory hazard allowance estimated to be N5,000 only.

In his welcome address, President of the EMBA 24 Class, Mr. Olajide Bamigbowu, noted that the class was one of the very few programmes that Covid-19 could not disrupt.

“The year 2020 will go down in history as the end and beginning of a new era. Just like we have dispensations marked by monumental occurrences, there will be many references to the pre and post Covid-19 era for generations to come,” Bamigbowu said.

He said the year witnessed the full-blown impact of the novel virus which has challenged systems and ideologies.

According to him, the virus disrupted all that it could and even those that people assumed it could not before it ushered in a new world.