The Nation Newspaper

Category: Equities

  • International Breweries opens N164b rights issue

    Taofik Salako

    International Breweries has opened application list for its N164 billion right issue, in a major recapitalisation that will see the Belgian core investor investing some additional N123 billion in the Nigerian subsidiary.

    International Breweries is raising N164.39 billion through a rights issue of 18.266 billion ordinary shares of 50 kobo each at N9 per share. The rights issue is pre-allotted on the basis of 17 new ordinary shares of 50 kobo each for every eight ordinary shares of 50 kobo each held as at the close of business on November 6, 2019.

    Application list will run till Tuesday December 24, 2019. The opening of application list followed final approval of the offer by the Securities and Exchange Commission (SEC). The Nigerian Stock Exchange (NSE) and shareholders of the company had earlier approved the rights issue.

    The Nation had reported that Anheuser-Busch InBev (AB InBev), the majority core investor in International Breweries, may be investing more than N123 billion in the Nigerian business in a major capital injection expected to consolidate Anheuser-Busch InBev’s push for the greater share of the Nigerian and Sub Saharan African markets.

    Anheuser-Busch InBev holds the majority equity stake of 75.1 per cent in International Breweries Plc. With the pre-allotment ratio, about 13.72 billion ordinary shares of 50 kobo each have been pre-allotted to AB Inbev.

    Sources in the know had said AB InBev was in support of the rights issue and had committed to participating fully in the new capital raising exercise.

    The N164.39 billion recapitalisation exercise, one of the largest indirect capital injections in the Nigerian capital market, came on the heels of the consolidation of AB InBev’s Nigerian operations under a single corporate entity.

    AB InBev had in 2017 merged its three indirect Nigerian subsidiaries-International Breweries Plc, Intafact Beverages Limited and Pabod Breweries Limited. The merger was done through a scheme of merger with International Breweries subsisting as the post-merger company. The merger was seen as a major strategic move by Anheuser-Busch InBev to upend competition and consolidate its Nigerian base for further expansion into the Sub-Saharan Africa (SSA).

    With the 2017 business combination, AB InBev’s majority equity stake in International Breweries increased to 75.1 per cent. A total of 5.302 billion ordinary shares were issued for the merger. With the supplementary listing of 5.302 billion ordinary shares, the total issued and fully paid up shares of International Breweries had increased from 3.294 billion to 8.596 billion ordinary shares.

    The merger was believed to be a major competitive move by AB InBev to give its operations a major nationwide push to increase its market share. International Breweries is located in Ilesa, Osun State in the South West region. Intafact Beverages’ brewery is situated in Onitsha, Anambra State in the South-East region while Pabod Breweries is located in Oginigba, Port Harcourt, Rivers Sate in the South-South region.

    Prior to the merger, AB InBev held 72.17 per cent majority equity stake in International Breweries through its subsidiary-Brauhaase International Management GMBH. SABMiller Nigeria Holdings BV-another subsidiary of AB InBev had held 75 per cent and 82.81 per cent majority equity stakes in Intafact and Pabod respectively.

  • University Press alerts investors on profit decline

    Taofik Salako

    University Press (UP) Plc has alerted investors that its performance may fall short of projection as the printing and publishing company struggles with declining demand and piracy.

    In a profit warning, directors of University Press stated that their review by the period ended November 30, 2019 already showed a shortfall of N800 million between the projected and actual turnover for the third quarter ending December 31, 2019.

    According to the company, preliminary review showed a turnover of N1.8 billion at the end of November, lagging considerably behind N2.6 billion projected for the period ending December 31, 2019.

    “The drop in revenue will directly affect the company’s profit which may lead to the non realisation of the company’s revenue budget and by extension its projected profit,” the company stated.

    Directors of the Ibadan, Oyo State-based company attributed its inability to achieve projected results to increased erosion of its revenue by pirates, noting that many of its products had been pirated.

    The company also blamed its declining performance on what it described as “economic realities in the country”, which led to low demand for its products.

    UP added that expected purchase of books from the company by the various tiers of government and their agencies did not materialise.

    The company, however,  expressed optimism on its future, pointing out that the board and management are committed to measures and strategies that will ensure long-term growth.

  • Fed Govt opens application for new savings bonds

     Taofik Salako

     

    THE Federal Government has opened application list for two new sovereign savings bonds, the last set of savings bonds to be issued this year.

    The Debt Management Office (DMO), which oversees government’s debt issues, is offering two new tranches of the Federal Government of Nigeria Savings Bonds (FGNSBs). The first issuance is a two-year bond with a coupon of 9.091 per cent with a maturity date of December 11, 2021. The second issuance is a three-year bond with a coupon of 10.091 per cent and maturity date of December 11, 2022.

    Application lists for the two issues opened Monday December 02, 2019 and will run till Friday, December 06, 2019 while the settlement date is fixed for Wednesday December 11, 2019.

    The bonds will be listed on the Nigerian Stock Exchange (NSE) and FMDQ Securities Exchange, which allow bondholders to trade their holdings before maturity.

    Minimum subscription to the FGNSB is N5,000 while the bond pays coupon or interest rate on a quarterly basis. The FGNjSB was introduced in 2017 as a mass instrument for nationwide mobilization of savings and investments.

    Read Also: Nigeria’s debt profile hits N25.7 tr, says DMO

    Bondholders will have their holdings credited into their investment accounts at the Central Securities Clearing System (CSCS) within three working days after the closure of application on Friday.

    GTI Securities Limited, one of the authorised distribution agents for the FGNSB, noted that the savings bonds would help to deepen national savings culture while providing opportunity to all Nigerians irrespective of income level to contribute to and benefit from national development.

    According to the stockbroking firm, FGNSB enables all Nigerians opportunity to participate in and benefit from the favourable returns available in the capital market.

    GTI Securities noted that the savings bonds are acceptable as collateral for loans by banks and can be sold for cash in the secondary market before maturity.

    “The bond will be listed on the Nigeria Stock Exchange for trading and provides liquidity for investors who want to exit before maturity,” GTI Securities stated.

    It noted that the savings bonds are good for savings towards retirement, marriage, school fees and house projects among other targets while assuring on its safety as the bonds are backed by the full faith and credit of the Federal Government of Nigeria.

     

     

  • Alumni honour UBA’s GMD, others

    Taofik Salako

     

    UNIVERSITY of Benin Alumni Association, Lagos Chapter has honoured the Group Managing Director of United Bank for Africa (UBA) Plc, Mr. Kennedy Uzoka.

    The honour which was conferred at a dinner in Lagos was in appreciation of Uzoka’s ‘hardwork, diligence and continuous commitment to the values of excellence’ as a banker and head of the Pan-African financial institution with presence in 20 African countries.

    Honoured along with Uzoka were Emeritus Professor, Osato Giwa-Osagie, a renowned professor of Obstetrics and Gynaecology and Founder of OMNI Medical Clinic, Dr(Mrs) Rametu Omamegbe Momodu, Deputy Director, National Agency for Food and Drug Administration and Control (NAFDAC), among others.

    Responding to the honour, Uzoka expressed his delight at being honoured by the university he holds in high esteem.

    “I am very proud of this great university which was very instrumental in moulding me to what I have become today, driving a financial institution with strong commitment to the development of the African continent,” Uzoka said.

    He reiterated his personal commitment and that of the bank to continue to support the development of UNIBEN, adding that UBA has been showing deep interest and support to the institution, for instance, it recently built an ultra-modern ICT Centre at the Ugbowo Campus through the UBA Foundation among other things.

    Chairman of Occasion, Gen. Felix Edafioghor said the dinner was in honour of the alumni of the university who have contributed immensely to the development of the society and that of the university.

    Read Also: British Airways, UBA reward customers

    He encouraged the alumni to show deep interest in the affairs of their alma-matter by giving back to the university that contributed to their successes.

    Also speaking, Pharm. Stephen Onojomete, Chairman, UNIBEN Alumni Association, Lagos Chapter, noted that the award provides an opportunity to showcase and celebrate great mean and women who by hardwork, diligence and a continuous commitment to the values of excellence; have recorded major strides in their chosen profession thus contributing to national growth and development in general and projecting the good image of UNIBEN.

    Kennedy Uzoka is a distinguished African business executive, with vast experience in banking, business development, financial and business advisory, strategic planning and execution as well as human resource management. He is an advocate of disruptive technology and has led many game-changing innovations in the African banking industry over the past two decades of his career.

    Uzoka holds a BSc. in Mechanical Engineering from the University of Benin is also a Fellow of the Chartered Institute of Bankers in Nigeria (CIBN). He is an alumnus of the Advanced Management Program (AMP) of the Harvard Business School, Boston USA, the International Institute of Management Development (IMS) in Lausanne, Switzerland, and the London Business School, United Kingdom.

     

  • Access Bank excites customers with yuletide rewards

    Taofik Salako

    ACCESS Bank Plc has unveiled series of exciting rewards for its customers to celebrate the yuletide season. The campaign tagged ‘More Xtravaganza’, will run from November 21 to December 31, 2019.

    Speaking at the launch of the campaign in Lagos, Executive Director, Retail banking, Access Bank Plc, Victor Etuokwu said Access Bank is passionate about its customers and everything we do is centred around giving them more.

    “This season, we have decided to launch this campaign to end the year on a high note in celebration of our customers. We appreciate them for their loyalty and support and this is our own way of saying thank you to them,” Etuokwu said.

    He said the ‘More Xtravanganza’ campaign further demonstrates the bank’s promise to provide customers with the best banking products and services whilst rewarding them for banking with it.

    “We will be rewarding 50 active and inactive Diamond Business Advantage customers with one-month free advert broadcast and production for signing up to the Ebony Life Access to Market package or reactivating their accounts respectively,” Etuokwu said.

    Commenting further on the campaign, Head, Insights and capabilities, Access Bank Plc, Robert Giles, said customers were the reason the bank is in business and they will always come first in its products, processes and services.

    Read Also: ‘Access The Stars’ talent hunt heads to Lagos

    He added that to show appreciation for customers’ patronage, the bank is going to feature three different DiamondXtra draws; Senior citizens draw, Women’s draw and the National quarterly draw this December.

    “We will reward 19 senior citizens who are 50 years old and above, 10 Women in which one of them will win a shopping allowance of N100,000 per month for one year and 9 others will win N300,000 each and of course 1,016 lucky customers will emerge winners from our quarterly draw,” Giles said.

    In an interview with newsmen, Head, Consumer Banking, Access Bank Plc, , Adaeze Umeh said the bank will in the spirit of the yuletide season be rewarding first 100 premium savers with daily airtime when they maintain their account balances for 30 days.

    “We are also going to reward the first 200 transfers on the mobile app with airtime. XclusivePlus customers who refer 3 new customers of their subscriber type will win one monthly/yearly plan. This reward will be for the first 200 customers. We will also reward our Early Savers with 20% bonus of their 13th savings for maintaining consistent savings over 12-month period.

    To join our winning train, all you need to do is to dial *901#, or walk into any Access Bank branch close to you to reactivate or open new account and start enjoying the More Xtravaganza benefits,” Umeh said.

    She assured that Access Bank is committed to delivering products and services tailored to suit the lifestyles of every Nigerian irrespective.

     

  • Equities continue decline with N23b loss

    Taofik Salako

     

    NIGERIAN equities continued on the decline on Tuesday as widespread selloffs across the sectors shaved off N23 billion from stocks’ market values.

    With decliners outstripping advancers for the second consecutive trading session, benchmark indices for the Nigerian stock market dipped further to push the negative average year-to-date return to -14.27 per cent.

    The All Share Index (ASI)- the common value-based index that tracks share prices at the Nigerian Stock Exchange (NSE), declined by 0.17 per cent from its opening index of 26,990.59 points to close at 26,944.32 points.

    Aggregate market value of all quoted equities dropped from its opening value of N13.028 trillion to close at N13.005 trillion.

    Sectoral Indices showed mixed performance. The NSE Insurance Index declined by 0.37 per cent while the NSE Industrial Goods Index dropped by 0.25 per cent. On the positive side, the NSE Banking Index appreciated by 0.38 per cent. The NSE Consumer Goods Index rose by 0.05 per cent while the NSE Oil and Gas Index closed flat.

    Guinness Nigeria led the 19-stock losers’ list with a drop of N2 to close at N29. Stanbic IBTC Holdings followed with a drop of N1.35 to close at N36.80. MTN Nigeria declined by N1 to close at N119. CAP dropped by 30 kobo to close at N24 while Lafarge Africa lost 15 kobo to close at N13.85 per share.

    Read Also: Equities dip on new pricing rule

    On the positive side, Okomu Oil Palm led the 13-stock gainers’ list with a gain of N4.90 to close at N54.55. Unilever Nigeria and Flour Mills of Nigeria followed with a gain of 75 kobo each to close at N18.45 and N19 respectively. E-Tranzact International appreciated by 23 kobo to close at N2.61 while UAC of Nigeria and Zenith Bank added 20 kobo each to close at N7.50 and N18.80 respectively.

    Total turnover dropped by 23.2 per cent to 189.01 million shares valued at N2.88 billion in 3,314 deals. Banking stocks dominated activities chart with Access Bank emerging the most active stock with a turnover of 35.41 million shares worth N324.55 million. Guaranty Trust Bank followed with 34.61 million shares worth N 1.05 billion while Zenith Bank placed third with 18.37 million shares valued at N342.41 million.

    “We maintain a bearish outlook on the market in the near term as investors’ book profit following gains in the prior weeks,” Afrinvest Securities stated.

  • Niger Insurance sets 15kobo bottom price for N15b capital raising

    By Taofik Salako

     

    Niger Insurance Plc has set a base price of 15 kobo for its planned capital raising of N15 billion in anticipation of competitive pricing being orchestrated by price depreciation at the secondary market and competing offers.

    Niger Insurance’s share price closed weekend at the Nigerian Stock Exchange (NSE) at 20 kobo per share, 60 per cent below its nominal value of 50 kobo.

    The company has received shareholders’ approval to provide as much as a discount of 70 per cent to its nominal value in consideration for the N15 billion capital raising.

    Shareholders authorised the board of the company to issue shares of the company “either at premium or a discount” provided that in the event of a discount, it shall not be more than 70 per cent discount to the nominal value.,

    Shareholders had approved and authorised the board to take all necessary steps to raise additional capital of up to N15 billion by way of rights issue, private placement or not negotiate merger and acquisition or any other form of business combinations.

    Shareholders also mandated the board of the company to restructure the company’s share capital by either of share consolidation, division, cancellation or redenomination of the shares of the company.

    The National Insurance Commission (NAICOM) had in May 2019 released new capital requirements for insurance businesses with a 13-month compliance period for operators to shore up their minimum capital base to the required level. 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. Insurance companies are required to comply fully with the new minimum capital base by June 30, 2020.

    Meanwhile, Niger Insurance at the weekend announced the appointment of Mr Edwin Igbiti as its substantive managing director. The announcement followed approval of the appointment by NAICOM. Igbiti was the immediate past managing director of AIICO Insurance Plc, another quoted insurance company.

  • May & Baker Nigeria, Sanofi Nigeria sign manufacturing agreement

    May & Baker Nigeria Plc has signed  a manufacturing agreement with Sanofi Nigeria Limited, a subsidiary of the French pharmaceutical giant Sanofi.

    Under the agreement, May & Baker Nigeria will use its World Health Organisation (WHO)-certified manufacturing facility to produce four product brands of Sanofi for sale in Nigeria and the West African market.

    The products which May & Baker Nigeria will manufacture for Sanofi include Flagyl tablets and Suspension and Tarivid tablets, anti-infective medicines and Malareich tablets, an anti-malaria drug.

    Industry analysts saw the agreement as  a direct response to the call by the National Agency for Food and Drugs Administration and Control (NAFDAC)  for pharmaceutical brand owners to localise their production by using locally available capacity to produce quality products in Nigeria.

    The agreement was signed by Sanofi’s General Manager and Country Chair Nigeria – Ghana, Mrs. Folake Odediran and Managing Director, May & Baker Nigeria Plc, Mr. Nnamdi Okafor.

    The signing ceremony was witnessed by Ms. Valeria Saviano, Sanofi’s Head of Supply Chain Africa, Mr. Sam Ohuabunwa, President, Pharmaceutical Society of Nigeria (PSN), Prof. Mojisola Adeyeye, Director General of NAFDAC represented by Dr. Monica Eimunjeze, a director in NAFDAC, Mr.  Femi Soremekun President of NIROPHARM, and Mr. Frank Monumeh, Executive Secretary, Pharmaceutical Manufacturing Group of the Manufacturers Association of Nigeria (PMG-MAN), among other dignitaries in the healthcare industry.

    Speaking at the signing ceremony, Okafor said  May & Baker Nigeria invested heavily in setting up its internationally standard production facility and obtain WHO Good Manufacturing Practice (GMP) certification to enable her  extend services to other  products owners who  might wish to heed the call to localise their medicine production in Nigeria.

    He noted that May & Baker Nigeria’s WHO-certified complex, known as The Pharma Centre, has capacity to produce 6.0 billion tablets and 37.5 million 60ml liquid medicines annually.

    “At the moment, we are only able to utilise 50 per cent of this capacity, leaving a large room for other products owners who may want to use the facility,” Okafor said.

    In her remarks, Odediran said Sanofi was satisfied with the quality of May & Baker Nigeria’s facilities and handling of their products.

    According to her, building strategic partnership with May & Baker Nigeria Plc to support local manufacturing ambition is based on May & Baker Nigeria’s rich history of producing high quality medicines in Nigeria.

    “It also follows rigorous due diligence exercise and successful compliance outcomes in line with local laws and our global policies,” Odediran said.

    Commenting on the agreement, Adeyeye said the May & Baker Nigeria and Sanofi partnership was a synergy that would promote the localisation policy of NAFDAC and eventual attainment of medicine self-sufficiency.

  • Stock Exchange suspends trading on Continental Reinsurance

    By Taofik Salako

     

    The Nigerian Stock Exchange (NSE) has placed full suspension on trading in the shares of Continental Reinsurance Plc. The suspension was in furtherance of the bid by the majority core investor to acquire minority shareholdings in the reinsurance company.

    Head, Listings Regulation Department, Nigerian Stock Exchange (NSE), Godstime Iwenekhai said the suspension was to prevent further trading in the shares of the company beyond the effective date of the acquisition. The effective date is the day the certified true copy (CTC) of the court sanction will be registered with the Corporate Affairs Commission (CAC), which brings into force the Scheme of Arrangement by which CRe African Investments Limited (CRe Investments) will acquire all the shares of Continental Reinsurance.

    Shareholders had at the court-ordered meeting approved the take-over bid launched by the majority core investor in the Nigerian reinsurance company to buy out retail minority shareholders and turn Continental Reinsurance into a wholly-owned subsidiary.

    The board of Continental Reinsurance had announced that it had received an offer from CRe African Investments Limited (CRe Investments), a major investor in the Nigerian company, to acquire all the outstanding and issued shares of Continental Reinsurance.

    According to the board, CRe Investments is making the offer in order to initiate a much needed restructuring exercise for Continental Reinsurance, with a view to consolidating its operations and repositioning it for enhanced competitiveness in the global insurance market.

    The acquisition is being executed through a Scheme of Arrangement under Section 539 of the Companies & Allied Matters Act Cap C20 Laws of the Federation of Nigeria 2004 and other applicable rules and regulations.

    CRe Investments had initially offered N2.04 per share for the 10,372,744,314 ordinary shares of 50 kobo each or one ordinary shares of $1 each in the capital of CRe Investments for every 176 ordinary share of 50 kobo each held in Continental Reinsurance. However, the scheme consideration was revised upward from N2.04 to N2.10 per share, with the new price representing 51.08 per cent premium on the share price of Continental Reinsurance as at the close of trading on October 5, 2018 which was the last business day prior to the date on which the proposal was received from CRe African Investments Limited.

  • FMDQ Exchange lists N500m SFS Fixed Income Fund

    By Taofik Salako Capital Market Editor

     

    FMDQ Securities Exchange has listed 500 million units of N1 each of SFS Fixed Income Fund.

    The SFS Fund is structured as an open-ended fixed income investment scheme, duly authorised and registered in Nigeria as a unit trust scheme under section 160 of the Investment and Securities Act 2007.

    The Fund, which targets investors, including individuals and institutions with low risk appetite and who are averse to high fluctuation in investment returns, amongst others, will be invested in interest-bearing investments through any Central Bank of Nigeria (CBN)-approved Bank.

    In addition, the fund may also be invested in high quality short-term securities such as Commercial Papers and Bankers’ Acceptances.

    From global visibility to governance, the SFS Fund joined a host of other securities listed on the FMDQ Exchange.

    FMDQ Exchange stated that as a systemically important financial market infrastructure positioned to drive innovation, collaborative relationships and technology, it strives to foster development in the Nigerian financial market through its exchange, clearing and depository infrastructures, thereby providing a seamless process and value-chain for the markets to execute, clear and settle their transactions.