The Nation Newspaper

Category: Equities

  • Notore’s shareholders okay N30b new capital

    Notore’s shareholders okay N30b new capital

    By Taofik Salako, Deputy Group Business Editor

    Shareholders of Notore Chemical Industries Plc have authorised the Board of Directors of the company to raise up to N30 billion in new capital to strengthen the balance sheet of the agro-allied company.

    Shareholders authorised the board to raise additional capital through a public offering, rights issue or other methods as the board may deem fit. Besides, the company may issue debt or equity through issuance of shares, convertible or non-convertible securities, loan notes, bonds and any other instruments.

    At their Annual General Meeting (AGM) in Lagos, shareholders also mandated the board to apply any outstanding convertible loan, shareholder loan or loan facility due to any person from the company towards the payment for any shares subscribed for by such person under the capital raise.

    According to the resolutions, where the directors deem fit, the rights issue or any other capital raise may be underwritten on such terms and conditions as the directors may approve while in the event that the company raises the additional capital by way of a rights issue, any shares not taken up by the existing shareholders within the stipulated period, will be determined and offered to interested shareholders of the company. Where the rights issue is underwritten, the shareholders will also waive their pre-emptive rights to enable the underwriter to take up any unsubscribed shares.

    In order to create headroom for the new capital raising, shareholders increased the authorised share capital of the company from N1 billion of 2.0 billion ordinary shares of 50 kobo each to N2 billion of 4.0 billion ordinary shares of 50 kobo each by the creation of additional 2.0 billion ordinary shares of 50 kobo each.

    The Memorandum of Association of the company would now be amended to reflect the new authorised share capital of N2 billion, divided into 4.0 billion ordinary shares of 50 kobo each.

    Notore had grown its top-line by 89.4 per cent to N8.18 billion in the first three months of its current business year as the agro-allied company begun to reap benefits of its production capacity development.

    Notore has expressed optimism on its business outlook noting that there are opportunities for better performance as the domestic fertilizer market is yet to reach its full potential.

    According to the company, the fertilizer market in Nigeria during the period under review was robust as Notore sold all the urea that it produced during the period in both domestic and international fertilizer market.

     

  • Capital market set for greater economic devt

    Capital market set for greater economic devt

     Taofik Salako, Deputy Group Business Editor

     

    MAJOR financiers and decision-makers in the  financial markets on Wednesday reiterated the need for public-private sector partnership and a collective approach that will see the capital market playing the leading roles in national economic development.

    At the investiture of Mr Olatunde Amolegbe as the 11th President of the Chartered Institute of Stockbrokers (CIS) on Wednesday in Lagos, governments, major public and private sectors regulators, self- regulatory groups, trade groups and operators said the COVID-19 pandemic and global economic realities have reinforced the importance of an innovative, liquid and functional capital market in national development.

    Speakers at the investiture, which was conducted as an all-inclusive physical and virtual ceremony, included Chairman, Senate Committee on Capital Market, Senator Ibikunle Amosun; Kwara State Governor, Mallam Abdulrahman Abdurrasaq; Chairman, House of Representatives Committee on Capital Market and Institutions, Hon. Ibrahim Babangida; Director-General, Securities and Exchange Commission (SEC), Dr Lamido Yuguda; President, Institute of Chartered Accountants (ICAN), Dame Onome Adewuyi; President, Chartered Institute of Bankers of Nigeria (CIBN), Mr. Bayo Olugbemi; Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema; Chief Executive Officer, NASD OTC Securities Exchange Plc, Mr Bola Ajomale; and Chairman, Association of Issuing Houses of Nigeria (AIHN), Mr. Chuka Eseka, among others.

    With commendations for the professional competence and integrity of the new CIS president, the governors, regulators and captains of financial institutions pledged their willingness to collaborate with the institute whose members are agents of capital formation and mobilisation to enhance the economic growth and development.

    In his acceptance speech after being sworn in by the Assessor, Disciplinary Tribunal of CIS,  Justice Adesuyi Olagbegi and decorated with the insignia of office,  Amolegbe assured the financial market community and the government of his administration’s determination to work vigorously to enhance the development of the capital market and its contributions to national economic development.

    Read Also: Capital market to raise N1b for COVID-19 response

    He noted that the government and key players in the economy must accept the fact that the capital market holds the key to the long-term economic sustenance of Nigeria as a country and that the capital market has to be given maximum attention and topmost priority to play its natural role of mobilising the necessary financing to close the country’s huge infrastructural development gap and galvanise private sector participation in our economic development.

    “As we have already witnessed, the capital market has proved its resilience and world class structures by carrying on its major day-to-day operational activities unhindered since the pandemic started. It is an easily verifiable fact that many investors have received dividend income and earned capital gain even during the lockdown period,” Amolegbe said.

    Abdulrazak  assured  Amolegbe of his administration’s preparedness to partner with the stockbrokers in the areas of capital mobilisation for economic growth and development.

    El Rufai, represented by the state Commissioner for Business, Innovation and Technology, Mallam Idris Nyam, also assured that the  government would work with the capital market through the institute to address youth unemployment.

    Amosun said the government should use the capital market as the linchpin for its national employment programme, noting that it is only partnership between the government and private sector that can lead to sustainable reduction in unemployment.

    Babangida said the lawmakers were ready to work with the new president and other stakeholders to improve the  capital market.

    Former president of CIS, Mr. Ariyo Olushekun said the current situation requires the  capital market to dig deep to find ways of boosting investors’ confidence while creating new products to raise more funds to enable issuers of securities cope with survival challenges imposed by the pandemic.

     

  • JAIZ Bank, CANs Park, others partner on palliatives

    JAIZ Bank, CANs Park, others partner on palliatives

    Jaiz Bank Plc, in collaboration with CANs Park Limited, and other partners, have created a platform that makes it easy for relief providers to access and grant relief to the most vulnerable people in the society.

    This is part of the bank’s Corporate Social Responsibility (CSR) to provide palliatives as a response to the social and economic effects of the coronavirus pandemic.

    The platform tagged RISE, which stands for Relief Intervention and Symptoms Evaluation, is a web and USSD application, which connects relief providers to relief seekers within their location. It is designed to aid the reduction of mass gathering for relief distribution and support the gathering of data on crisis-related needs and intervention requirements, and help organisations to organise the records of their efforts in one place.

    Relief seekers can request relief materials which can be delivered to them after they have been matched to a relief provider within their location.Through a simple USSD request or requests sent via smartphones of people in need, the platform matches requests geographically to organisations that can fulfil such requests. This takes the guesswork out of relief provision and allows organisations to easily sort, respond, record and refine the relief they provide. These relief-providing organisations are required to do a simple sign up on the platform.

    Using demographic data, the platform connects relief providers with relief recipients that match their location and category of relief provision. Providers can also indicate when they are out of stock or cannot deliver on a request and the platform will automatically rematch the request with an available provider.

     

  • Meristem advises investors on strategies for H2

    Meristem advises investors on strategies for H2

    By Taofik Salako, Deputy Group Business Editor

    Investors seeking competitive returns should consider investing in value stocks in the healthcare, telecommunication and technology sectors.

    In its economic outlook for the second half of the year entitled: ‘Unmasking Value in a Scourge’, leading investment banking group, Meristem Group outlined that while the COVID-19 pandemic has created serious reversals and still pose great threats, investors can leverage on professional advice and good investment strategies to beat the headwinds and make good returns.

    The outlook report thoroughly analysed the position of the global and domestic economy, with a comprehensive focus on trends and activities within various economic sectors that could help avert a prolonged global recession.

    The outlook also highlighted the effect of the COVID-19 pandemic and the  consequences to capital flow reversals, external reserves, exchange rate, inflation and other macroeconomic variables as it relates to the  economy.

    At the onset of the pandemic mid-March, Meristem had offered forward guidance to investors on strategic investment prospects that existed within the capital market, emphasising that  opportunities existed within the fixed income environment.

    In the new outlook report, the investment banking group further extended the scope on valuable strategies that investors could adopt to realise value across various asset classes.

    Deputy Managing Director, Meristem Securities, Sulaiman Adedokun, said the research unearthed insights for clients, investors and the general public, who seek to revise their investment strategies for the remaining part of the year.

     

     

  • Stockbrokers hold new president’s investiture

    Stockbrokers hold new president’s investiture

    By Taofik Salako, Deputy Group Business Editor

    The investiture of the new president and chairman of council of the Chartered Institute of Stockbrokers (CIS), Mr Olatunde Amolegbe, holds on Tuesday, August 11, 2020.

    In line with the institute’s convention, an important aspect of the investiture will be the formal send-off of the immediate past President, Mr Adedapo Adekoje.

    Amolegbe scaled up the corporate ladder, for a two-year tenure, in a seamless transition, typical of the institute’s succession policy, on May 19, 2020, after the virtual Annual General Meeting (AGM), which effectively marked the end of Adekoje’s tenure.

    Amolegbe’s investiture, the 11th in the series, will be done online in line with the COVID-19 protocols, marks the formal handing over from Mr Adekoje, who shall decorate the new President with the paraphernalia of office. The institute’s investiture is a high profile ceremony that attracts top level dignitaries, including heads of state, governors, regulators and other technocrats in the financial market.

    A fellow of the institute, Amolegbe, is an accomplished economist, consummate stockbroker, investment analyst and asset manager, with over 28 years’ experience in the finance industry, covering virtually all aspects of the business at various levels. He was the immediate past first Vice President.

    Also, in pursuit of the institute’s capacity building, the scheduled virtual training for capital market correspondents on scholarship commences on Saturday, August 15, 2020 and will end on Saturday, November 1, 2020.

  • ‘SUNU Assurances on course to meet N10b capital base’

    ‘SUNU Assurances on course to meet N10b capital base’

    By Taofik Salako, Deputy Group Business Editor

    SUNU Assurances Nigeria Plc has assured that it would achieve the minimum capital base of N10 billion in due course.

    At the annual general meeting on Thursday in Lagos, directors of the insurance company reassured shareholders that the company is on course to achieving the N10 billion minimum capital base.

    Chairman, SUNU Assurances Plc, Mallam Kyari Bukar said the company would achieve the minimum capital base of N10 billion as stipulated by the National Insurance Commission (NAICOM).

    The meeting was conducted at the company’s headquarters in Victoria Island, Lagos State, with attendance strictly by proxy, in line with government’s directive on physical distancing and the restriction on the maximum number of people allowed in every gathering due to the COVID-19 pandemic.

    Members entitled to attend and vote at the meeting appointed either Bukar, Managing Director of Sunu Assurances, Mr. Samuel Ogbodu; President of the Nigerian Solidarity Shareholders Association, Chief Matthew Akinlade or representatives from the Lagos Zone Shareholders Association to do so on their behalf.

    In addition to electing members of the company’s audit committee, shareholders ratified the appointment of Mr. Karim-Franck Dione as non-executive director as well as re-elected non-executive directors, Mr. Kyari Bukar as Chairman, Ms. TaizirAjala as Vice Chairman and Mr. Ibikunle Balogun, amongst other approved resolutions.

    Sunu Assurances Nigeria plans to cancel 11.2 billion ordinary shares of 50 kobo each out of its existing issued 14 billion ordinary shares of 50 kobo each as part of a recapitalisation plan aimed at increasing the capital base of the insurance company to the new minimum capital base.

    At an extraordinary general meeting in April 2020, shareholders of the company had approved a proposal by the board of the company to cancel four ordinary shares out of every five ordinary shares held by shareholders.

     

    The company stated that the purpose of the share capital reduction was “to allow for the issuance of new ordinary shares by way of a rights issue and private placement, in order for the company to comply with the recently revised share capital requirement by the National Insurance Commission (NAICOM) for insurance companies”.

    The company explained that the share capital reconstruction was adopted as the more efficient approach to creating room for new equity capital issuances.

    “The share capital reconstruction will lead to the cancellation of 11.2 billion ordinary shares and result in an increase in the share price to N1. This will enable the rights issue, private placement and any subsequent equity capital raising to be priced above the nominal value of 50 kobo,” the company stated.

    NAICOM had in May 2019 released new capital requirements for insurance businesses. The minimum paid-up share capital of a life insurance company was increased from N2 billion to N8 billion, non-life insurance from N3 billion to N10 billion, composite insurance from N5 billion to N18 billion while re-insurance companies were directed to raise their capital base from N10 billion to N20 billion.

  • Nigerian Breweries grosses N151b

    Nigerian Breweries grosses N151b

    By Taofik Salako, Deputy Group Business Editor

     

     

    Nigerian Breweries Plc’s turnover dropped by N18 billion to N152 billion in first half of the year as Nigeria’s largest brewer continued to struggle with macroeconomic headwinds, which were exacerbated by the COVID-19 pandemic.

    Key extracts of the interim report and accounts of Nigerian Breweries for the six-month period ended June 30 showed that turnover declined to N152 billion in first half of the year as against N170 billion recorded in comparable period of 2019. Net profit closed first half of the year at N5.7 billion.

    Directors of the company stated that the half-year results for the 2020 financial year showed a strong balance sheet despite several factors that negatively impacted on the company’s operations.

    They listed macroeconomic headwinds against the company to include in Excise Duty, a rise in inflation, an increase in value added tax (VAT) from five per cent to 7.5 per cent in as well as the impact of the coronavirus pandemic on businesses worldwide.

    “Despite these challenges, the company’s financial position shows stability and sustained profitability,” the board stated.

    The company stated that in support of the fight against the Covid-19 pandemic, the company, during the first half made various donations in cash and kind valued at about N531 million out of a phased commitment of N600 million to the Federal and State Governments’ Covid-19 relief funds.

    The board of directors commended the Company’s management for its efforts to mitigate the impact of the pandemic on the business, as well as the prudent management of its resources as reflected in a 7.0 per cent reduction in expenses incurred on marketing, distribution, and administration.

    “The board expressed confidence that the company is well-positioned to continue to deliver return on investment to shareholders,” the board stated.

    The board assured that the priority of the company management during this pandemic period remains ensuring the health, safety and welfare of employees, customers and partners.

     

  • Airtel Africa, Telkom dump Kenya’s merger deal

    Airtel Africa, Telkom dump Kenya’s merger deal

    By Taofik Salako, Deputy Group Business Editor

     

    Airtel Africa Plc and Telkom Kenya Limited have decided to forego a proposed business combination in Kenya, citing inability to reach a successful closure and lengthy process.

    Airtel Networks Kenya Limited (Airtel Kenya), a subsidiary of Airtel Africa Plc, and Telkom Kenya Limited (Telkom), among other parties, had entered into an agreement dated February 8, 2019 to combine their businesses in Kenya.

    The proposed business combination was meant to create an integrated telecommunications platform with mobile, enterprise, and wholesale divisions.

    However, the completion of the business combination was subject to the satisfaction of various conditions precedent, including regulatory approvals.

    In a regulatory filing yesterday at the Nigerian Stock Exchange (NSE), Airtel Africa stated that despite parties  endeavours to reach a successful closure, the transaction had gone through a very lengthy process which now led the parties to reconsider their stance.

    “Accordingly, Airtel Africa Plc and Telkom have decided to no longer pursue completion of the transaction,” Airtel Africa stated.

    Chief Executive Officer, Airtel Africa Plc, Raghunath Mandava, said Kenya was a large and growing market and reiterated the commitment of Airtel Africa to build a growing profitable business.

    “We serve more than 14 million Kenyan customers, a number that is growing month on month, and in the last quarter our revenue numbers were up double digit in constant currency in Kenya.

    ‘’Our strategy to focus on winning more customers, invest in a best in class voice and data network and progressively expand our mobile money business, will continue to build on these results to deliver against the opportunities the Kenyan market has to offer,” Mandava said.

     

  • Fidson’s net profit hits N407.19m

    Fidson’s net profit hits N407.19m

    Taofik Salako, Deputy Group Business Editor

    Fidson Healthcare Plc grew its bottom-line by 518 per cent to N407.19 million in 2019.

    At the Annual General Meeting (AGM) held at the conference centre, Fidson Towers, Obanikoro, Lagos, shareholders also approved a dividend of 15 kobo per share while commending the company for ensuring that investors continue to get good value on their investments.

    Fidson grew its profit for the year by 518 per cent from a loss of N97.45 million in 2018 to N407.19 million in 2019. This was despite a decrease in revenue by 13 per cent from N16.23 billion in 2018 to N14.06 billion in 2019, which was attributed largely to the impact of the rescheduled national elections on business operations in the first half of 2019 as well as ensuing consumer apathy.

    Chairman, Fidson Healthcare Plc, Mr Segun Adebanji, said the company adopted several cost optimisation initiatives that ultimately led to the increase in profitability. Gross margin improved from 39 per cent in 2018 to 42 per cent in 2019. Administrative and sales expenses reduced by 13 per cent while finance cost dropped by over 10 per cent.

    He said the proceeds from the company’s right issue in July 2019 were used to repay expensive loans, finance capital expenditure and working capital needs.

    According to him, Fidson Healthcare continues to leverage it World Health Organisation (WHO)-compliant factory, introducing 10 new products in 2019, and went into an agreement with GlaxoSmithKline Plc to contract manufacture for them from 2021 onwards.

    “This will, ultimately, drive an increase in output and efficiency, and bring variable costs of production down,” Adebanji said.

    He assured that the board is committed to implementing strategic initiatives like international collaboration and research and development to drive sustainable growth as well as cement its leadership position in the industry.

    “The Covid-19 pandemic has provided opportunities to explore the development of new products and with the increasing support of the government for  the healthcare sector, the company anticipates that it would successfully mitigate some of the shocks caused by the pandemic and emerge successful in the months ahead,” Adebanji said.

     

     

  • Access Bank completes acquisition of Kenyan bank

    Access Bank completes acquisition of Kenyan bank

    By Taofik Salako, Deputy Group Business Editor

     

    Access Bank Plc has  completed its acquisition of Transnational Bank Plc of Kenya (TNB).

    In a statement yesterday, its Company Secretary, Sunday Ekwochi said Access Bank had received regulatory approvals for the completion of the transaction.

    “Access Bank Plc is pleased to inform the investing public and the Nigerian Stock Exchange of the bank’s successful completion of the acquisition of Transnational Bank (Kenya) Plc.

    This follows the receipt of full regulatory approvals and fulfillment of all conditions precedent to completion,” Ekwochi stated.

    Group Managing Director, Access Bank Plc, Mr. Herbert Wigwe, quoted  the LC as saying that with Access Bank  having a solid retail presence across Africa,  the acquisition of TNB would allow the bank to build on its expertise in agricultural financing and deploy its resources to optimise other business segments.

    “We are excited to make an entry into the vibrant Kenyan market. We pledge to put our customers at the forefront of everything we do.

    Through the creation of a world class payment system, we will build and support our wholesale and retail customers using our strong customer insights to deliver beyond their expectations,” Wigwe said.

    He commended the regulators for the confidence reposed in the bank throughout the transaction while also acknowledging the support of its team of world class advisors whose hard work made the deal possible.

    According to him, with a long-publicised vision to be the world’s most respected African bank, the entry into the Kenyan market, a key gateway in East Africa, not only brings the bank closer to that vision, but also enables customers tap into its extensive global network.

    He added that the network would enable such customers to have access to immense business opportunities, robust and efficient digital solutions, competitive products and unrivalled customer experience.