Category: Investors

By Taofik Salako, Deputy Group Business Editor

Investors yesterday at the Nigerian Exchange (NGX) Limited struck a deal for block divestment of shares of BOC Gases Nigeria worth N1.37 billion.

Under the deal, a total of 249.75 million shares of BOC Gases Nigeria was transferred under negotiated cross deal at N5.50 per share.

The Nation’s check indicated that shares were 60 per cent majority equity stake held by BOC UK in BOC Nigeria. The deal was crossed by Stanbic IBTC Stockbrokers, a stockbroking firm known for trading for foreign investors.

Linde Plc, the parent company of Linde Group, had in 2018 became the indirect beneficial ownership in BOC Gases Nigeria Plc.

The beneficial ownership arose from the merger between Linde AG, a company registered in Germany and listed on the Frankfurt Stock Exchange and Praxair Inc, a company registered in the United States of America and formally listed on the New York Stock Exchange.

With the merger, Linde Plc, a company registered in Ireland and listed on the Frankfurt and New York Stock Exchanges, became the parent company of Linde AG and Praxair Inc.

As a result of the merger, which was concluded in October 2018, Linde Plc through its 92 per cent majority equity interest in Linde AG now holds an indirect beneficial interest in BOC UK and also an indirect beneficial ownership in BOC Gases Nigeria.

The Linde Group is a world leading supplier of industrial, process and specialty gases with products in more than 100 countries. It is reputed as one of the most profitable engineering companies.

The NGX had in June 2021 upgraded BOC Gases from low-priced stock to medium-priced stock following recent appreciation in the share price of the industrial gas company.

In a regulatory circular, the Exchange stated that the reclassification, which took effect from June 16 2021was after a review of share price of BOC Gases  over the most recent six months.

According to the NGX, the review of BOC Gases  ’s price trade activity over the most recent six month period provided the basis for reclassifying the security from the low priced stock group to the medium priced stock group.

The reclassification also necessitated the attendant change in the tick size change from one kobo to five kobo, in line with Rule 15.29: Pricing Methodology, Rulebook of the Exchange, 2015.

“ BOC Gases Plc stock price appreciated above the N5 price level on 16th November 2020 and traded above N5 up till close of business on 17th March 2021. This indicates that BOC Gases Plc stock price has traded above N5 in at least four months out of the last six months,” NGX stated.

The NGX classifies quoted companies into three categories-high-priced, medium-priced and low-priced stocks, based on their market price. A company must have traded for at least four out of the most recent six month period within a stock price group’s specified price band to be classified into the category.

The high-priced stocks consist of large-cap equities that are priced at N100 per share or above for at least four of the last six trading months, or new security listings that are priced at N100 or above at the time of listing on the Exchange.

The medium-priced stocks  consist of medium-priced equities that are priced at N5 per share or above but less than N100 per share for at least four of the last six months, or new security listings that are priced at N5 per share or above but less than N100 per share at the time of listing on the Exchange.

The low-priced stocks, where majority of listed companies fall, consist of equities that are priced at one kobo per share or above but below N5 per share for at least four of the last six months, or new security listings that are priced at one kobo per share or above but below N5 per share at the time of listing on the Exchange.

Africa’s richest man, Aliko  Dangote has significantly moved up in the World billionaires’ list as his fortune increased to $17.8 billion as against last year’s $14.8 billion to emerge as the only Nigerian in the Bloomberg’s yearly top billionaire lists.

Other Africans on the lists are three South Africans. They are Johann Rupert and family, worth $10.1 billion; Nicky Oppenheimer with a worth of $7.80 billion and Natie Kirsh who is reputed to worth $7.15 billion. Nassef Sawiris from Egypt is also among African billionaires with a worth of $6.93 billion.

The Bloomberg Billionaires Index is a daily ranking of the world’s richest people. In calculating net worth, Bloomberg News strives to provide the most transparent calculations available, and each individual billionaire profile contains a detailed analysis of how that person’s fortune is tallied.

The index is a dynamic measure of personal wealth based on changes in markets, the economy and Bloomberg reporting. Each net worth figure is updated every business day after the close of trading in New York. Stakes in publicly traded companies are valued using the share’s most recent closing price. Valuations are converted to U.S. dollars at current exchange rates.

Dangote, who remains the richest man in Africa for the 8th year running, was the only Nigerian on the list of the top 120 billionaires, as released on Monday by Bloomberg in its yearly billionaires list.

Ellon Musk and jeff Bezos are the richest in the world with $194 billion in their respective kitty while Bernard Arnault and Bill Gates followed respectively with $174 billion and $148 billion. Mark Zuckerberg was the fifth richest with $135 billion on the world’s billionaires chart.

Bloomberg is a global information and technology company, that connect decision makers to a dynamic network of data, people and ideas – “accurately delivering business and financial information, news and insights to customers around the world” Bloomberg L.P. provides financial software tools such as an analytics and equity trading platform, data services, and news to financial companies and organisations through the Bloomberg Terminal.’

Africa’s richest man, with his improved worth of $17.8 billion, controls Dangote Industries, a closely-held conglomerate. The Lagos, Nigeria-based company owns sub-Saharan Africa’s biggest cement producer, Dangote Cement. It also has interests in sugar, salt, fertiliser and packaged foods.

It would be recalled that Aliko Dangote, was also recently named as the sixth most charitable man in the World byRichtopia, a digital periodical that covers business, economics, and financial news, based in the United Kingdom. This recognition came after he endowed his foundation, the Aliko Dangote Foundation (ADF) to the tune of $1.25 billion.

Aliko Dangote started his Foundation in 1981, with a mission to enhance opportunities for social change through strategic investments that improve health and wellbeing, promote quality education, and broaden economic empowerment opportunities.

Aliko Dangote Foundation was however incorporated in 1994 as a charity in Lagos, Nigeria. 20 years later, the Foundation has become the largest private Foundation in sub–Saharan Africa, with the largest endowment by a single African donor. The primary focus of Aliko Dangote Foundation is health and nutrition, supported by wrap-around interventions in education, empowerment, and humanitarian relief.

Infrastructure Bank Plc has listed shares worth N3.2 billion on the NASD OTC Securities Exchange, paving way for investors to buy and sell shares of the development bank.

Infrastructure Bank, formerly  Urban Development Bank of Nigeria Plc, dematerialised 6.206 billion ordinary shares of 50 kobo each at 52 kobo per share on the NASD.

Infrastructure Bank joined 11 Plc, formerly Mobil Oil Nigeria Plc, and Capital Bancorp Plc, which also recently listed their shares on NASD OTC Securities Exchange.

The NASD OTC Securities Exchange is the government-approved over-the-counter (OTC) platform for trading in unlisted public companies.

NASD has assured companies and investing public of an orderly and transparent market for shares to be traded noting that once there is transparency, investors have some comfort in the type of transactions taking place.

“NASD can also, by its structure and rules open securities to trade between 24-48 hours, with its only requirement being that the securities being introduced are registered at Securities and Exchange Commission (SEC) and complies with the capital market regulations,” NASD stated.

NASD pointed out that OTC platform has been created for securities that are not listed on any other securities exchange providing a secure regulated platform for Investors to trade on them.

Infrastructure Bank also joined several other companies on the NASD included Dufil Prima Foods Plc, the manufacturer of Indomie Noodles; Friesland Campina Wamco Nigeria Plc, manufacturer of Peak Milk brand; and Fan Milk Plc, popular manufacturer of Fan Yoghurts, NIPCO Plc, Air Liquide Nigeria Plc Industrial & General Insurance Plc, Central Securities Clearing System Plc, the clearing and depository arm of the Nigerian Stock Exchange; Nigeria Mortgage Refinance Company, Jaiz Bank Plc, the Islamic bank; Acorn Petroleum Plc, Arm Life Plc, Afriland Properties Plc, BGL Plc, Consolidated Breweries Plc and Food Concepts Plc.

Others included Geo-Fluids Plc, Golden Capital Plc, Niger Delta Exploration & Production Plc, Partnership Investment Company Plc, Resourcery Plc, Riggs Ventures West Africa Plc, Swap Technologies & Telecomms Plc, Vital Products Plc, Fumman Agric Products Industries Plc, Free Range Farm Plc, FAMAD Plc, AG Mortgage Bank, Trustbond Mortgage Bank Plc, Mass Telecom Innovation (MTI ) and Providus Bank among others.

Inaugurated in July 2013, NASD is registered by the Securities & Exchange Commission (SEC) as a Self-Regulatory Organisation (SRO). The NASD OTC provides the platform for trading of a broad range of instruments over-the-counter, including equities, bonds and securities not listed on the NSE.

The Board of Directors of Seplat Energy Plc has approved distribution of 2.5 cents as interim dividend per share after the energy company recorded appreciable growths in sales and profit in the first half of the year.

The six-month report for the period ended June 30, 2021 showed that profit before deferred tax grew by 143 per cent to $62.1 million in first half 2021 while total revenue went up by 32 per cent to $308.8 million in first half 2021 as against $233.5 million in first half 2020. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at $178.9 million.

The operational highlights showed that working-interest oil and gas production was within guidance at 50,786 barrels of oil equivalent per day (boepd) with liquids production of 30,028 barrels of oil per day (bopd).

Other highlights included gas production that rose by 21 per cent to 120 million standard cubic feet per day (MMscfd); Oben-50 and 51 gas wells completed in the period and producing; safety record extended to more than 20.5 million man hours without LTI on Seplat-operated western assets while first liftings from Amukpe-Escravos Pipeline expected by fourth quarter 2021.

Seplat also successfully issued $650 million 7.75 per cent senior notes to redeem existing $350 million 9.25 per cent senior notes and repay $250 million drawn on $350 million Revolving Credit Facility (RCF); Refinanced $100 million Westport RBL facility; raised a $50 million offtake linked to the RBL in July; and total capital expenditure of $57.5 million.

The exchange rate for the naira or pounds sterling amounts payable to shareholders will be determined by reference to the relevant exchange rates applicable to the dollar on August 11, 2021 and will be communicated by the company on August 12, 2021. On or around September 13, 2021, the interim dividend will be paid electronically to shareholders whose names appear on the register of members as at August 12, 2021, and who have completed the e-dividend registration and mandated the registrar to pay their interim dividend directly into their bank accounts.

Shareholders holding their shares on the Nigerian Exchange Limited without a valid Nigerian Certificate for Capital Importation (CCI) will be paid their dividend in naira as the default currency. Shareholders holding their shares on the Nigerian Exchange Limited with a valid CCI will be paid their dividend in dollars as the default currency.

However, shareholders may instead elect to receive their entire dividend payment in naira as no such partial payment is permissible.

Evidence of the CCI must be provided to the registrars while shareholders holding their shares through depository interests on the London Stock Exchange will be paid their dividend in dollars as the default currency. However, those shareholders may instead elect to receive their entire dividend payment in pounds sterling.

Shareholders who have a dividend currency option, must make the election to the company’s registrars by August 27, 2021, otherwise the dividend will be paid in the default currency. The election form will be sent out to the relevant shareholders and can also be found on the company website.

Wema Bank Plc recorded impressive growths across major performance indices in the first half of this year with pre-ta profit rising by 149 per cent to N4.30 billion in six months.

Key extracts of the unaudited interim report and accounts of the oldest surviving indigenous bank for the half-year ended June 30 2021 showed gross earnings of N39.82 billion in first half 2021 as against N37.95 billion recorded in first half 2020.

Net fee and commission income had increased by 71.7 per cent to N5.40 billion in first half 2021 compared with N3.1 billion in comparable period of 2020. Profit before Tax rose from N1.72 billion to N4.30 billion while profit after tax increased from N1.49 billion to N3.70 billion.

Further analysis showed that total assets rose from N979.5 billion recorded by the end of 2020 to cross the milestone of N1.02 trillion by first half 2021. Capital adequacy ratio (CAR) improved from 11 per cent in first half 2020 to 13.2 per cent in first half 2021, well above regulatory minimum of 10 per cent.

Cost of funds declined to 5.3 per cent in first half 2021 from 6.4 per cent in first half 2020. Non-performing loans remained below regulatory benchmark of five per cent at 3.55 per cent.

Managing Director, Wema Bank Plc, Mr. Ademola Adebise said the performance in first half showed the spirit of resilience that runs through the bank as it has strongly bounced back from the COVI-19 impacted performance of the same period in 2020.

“As the economy opens back up fully, we expect to see a stronger performance for full year 2021,’’ he said.

Over the course of the second half of 2021, the bank will continue its strong focus on the digital business, pushing for further gains in customer acquisition, consumer lending and transaction volumes while on the commercial side of the bank, we will continue to aggressively grow our commercial lending business alongside trade and other revenue lines,” Adebise said.

Chief Finance and Strategy Officer, Wema Bank Plc, Tunde Mabawonku said the first half perforane was a delight as it showed growth in key financial metrics despite the challenging macro-economic environment arising from the COVID-19 pandemic.

“The key measure of success for us is growth in customers and customer activity – and we are glad that we are reporting strong growth here,” Mabawonku said.

He added that rating agencies including Fitch, Global Credit Rating (GCR) and Agusto reaffirmed Wema Bank’s National Long-term rating at BBB-during the period.

The bank also recently appointed Mr. Emeka Obiagwu as an executive director while Prince Olusegun Adesegun and Adeyemi Adefarakan were appointed as non-executive directors.

FMDQ Securities Exchange listed 82 securities worth N2.07 trillion in the 2020 business year. The group also planned to start listing and trading in equities.

Speaking at the group’s Annual General Meeting (AGM), Chairman, FMDQ Holdings Plc, Dr. Kingsley Obiora, said the group recorded significant achievements during the year despite the challenges posed by COVID-19 pandemic.

Obiora, who was represented by Mr. Jibril Aku, the Group Vice Chairman, noted that despite the challenges in 2020; it was a landmark year for FMDQ as it reorganised into a group structure, with FMDQ Group becoming a non-operating holding company registered by the Securities and Exchange Commission (SEC), with three SEC-registered capital market subsidiaries.

These regulated subsidiaries include FMDQ Securities Exchange Limited (FMDQ Exchange), FMDQ Clear Limited (FMDQ Clear) and FMDQ Depository Limited (FMDQ Depository), all further consolidating the group’s business model and transforming FMDQ into Africa’s first vertically integrated financial market infrastructure (FMI) group.

According to him, the restructuring also helped to de-risk the markets across the full capital market value chain, from pre-trade, trade to post-trade while two new subsidiaries, FMDQ Private Markets Limited and iQx Consult Limited, were operationalised in 2020 to extend the opportunities in the capital market to private companies and to ensure operational efficiency and build resilience in the FMDQ entities through technology and digitisation.

He outlined that the group activated its equity market development project during the year, with relevant activities commencing in earnest towards full operationalisation of the market as well as its FMDQ Exchange-Traded Derivatives (ETD) Market Development Project, following significant financial markets developments, such as the long-awaited introduction of netting and other relevant laws in the Companies and Allied Matters Act (CAMA) in 2020.

He said the group plans to launch its FMDQ ETD Market with introduction of pioneer fixed income products later in the year.

Speaking on FMDQ Clear, Obiora said the receipt of an approval from the SEC has positioned FMDQ Clear for the actualisation of the company’s vision of becoming a globally accepted CCP by 2025.

“FMDQ Depository was not left out of the mix, as it also achieved considerable growth as evidenced in the admission of a total of 21 securities valued at N411.00 billion in 2020, driven by the activation of its market penetration strategy for its securities-related services, despite the downturn in the operating environment,” Obiora said.

Chief Executive Officer, FMDQ, Mr. Bola Onadele.Koko  while speaking to the group’s outlook for 2021 and beyond, said the group would continue to work assiduously to deliver innovative and critical market development initiatives, with the support of and in collaboration with its stakeholders.

He outlined some of the initiatives market participants can look forward to in the near-term to include the launch of FMDQ Exchange’s fixed income futures products, having received the SEC’s approval for the FMDQ Exchange Derivatives Market Rules in February 2021, and the activation of the repo market with collateral management service; FMDQ Clear’s activation of CCP services for financial market transactions-cash and derivatives having received the SEC’s approval for its clearing member rules in April 2021; FMDQ Depository’s extension of its services to new asset classes and customer segments, and further digitisation of its participants interfaces and services.

According to him, the group will also soon activate its FMDQ Private Markets’ Startup Accelerator and Liquidity Ecosystem (SCALE) product, supported by the Oxford Foundry, the entrepreneurial centre of the University of Oxford, UK, which will extend much-needed opportunities to market segments that are currently poorly served by capital providers and drive an inclusive growth and development of the Nigerian economy.

“Despite the lingering effects of the pandemic on the economy and the minimal recovery recorded thus far in 2021, FMDQ Group assures its stakeholders of a renewed commitment to channel adequate resources towards achieving the set objectives for the markets under its purview, while continuing to work assiduously towards the swift activation of robust and thriving derivatives and equity markets, as well as consolidating the group’s debt markets leadership position,” Onadele.Koko said.

By Taofik Salako, Deputy Group Business Editor

Vitafoam Nigeria Plc is a major sponsor of the just-concluded inter-Primary Schools’ Competitions on Pillow Art and Business Plan Challenge.

The competition was instituted to nurture creativity among children in the elementary schools.

The contest, which was under the auspices of ‘I-Create’ Club, had over 700 submissions from pupils and 50 schools in Lagos State.

The contest provided an opportunity for pupils in primary three across the participating institutions to deploy imagination to create thematic designs that express their thoughts, using paints and colours, while the Business Plan Challenge enabled primary six pupils to conceptualise ideas of a workable business.

First prize winner for the Pillow Art Competition emerged from the University of Lagos’ Women Society School, first runner up from Sunnydale School and Second runner from Scholars Crest School.

Chrisland Schools emerged winner of the Business Plan Challenge, Corona School came Second, and Basil International School took the third position.

A range of Vitafoam products were given to the winners of the Pillow Art Challenge while cash prizes were also given to the winners of the Business Plan Challenge.

Founder, ‘ I-Create’ Club, Mrs Eniola  Afolayan, expressed gratitude to Vitafoam for its sustained support for the competition and pledged her organisation’s determination to uphold its ideal by ensuring that every year brings a new value.

“We have been doing this since 2015 and Vitafoam has consistently supported us throughout the journey. We appreciate Vitafoam , pupils and participating schools for their continuous support. We promise to keep up the good work,” Afolayan said.

Addressing the participants, Commercial Director, Vitafoam Nigeria Plc, Mr Sola Owoade commended the pupils for their creativity noting that Vitafoam as a family brand is committed to excellence which the pupils have demonstrated in creativity.

According to him, as a responsible organisation, the company is proud to associate with these educational  initiatives that nurture future generation.

Brand and Communications Manager, Vitafoam Nigeria, Busola Onamusi congratulated  the competition’s winners and assured that Vitafoam is always delighted to inspire and nurture young minds.

She noted that creativity is enhanced with a well-rested body which is why Vitafoam is rewarding the winners with products that enhance good sleep and wellness.

By Taofik Salako, Deputy Group Business Editor

Authorities at the Nigerian Exchange (NGX) Limited have suspended trading in the shares of Rak Unity Petroleum Plc as the downstream oil company begins  voluntary winding up.

Shareholders of Rak Unity Petroleum Plc had at their Annual General Meeting (AGM) on June 4, 2021 authorised the board of the company to commence the winding up.

RAK Unity Petroleum was incorporated as a private limited liability company in December 1982. It converted to a public limited liability company in November 1987.

Citing Section 622 of Companies and Allied Matters Act (CAMA)  2020 which states: “A voluntary winding-up shall be deemed to commence at the time of the passing of the resolution for voluntary winding-up”, while NGX Regulation Limited (NGX RegCo) stated that it has placed full suspension trading in the shares of RAK Unity with effect from July 26, 2021.

According to the NGX, the suspension was to ensure a smooth winding up.

The NGX noted that the suspension was in line with Section 624 of CAMA 2020 which provides that “A transfer of shares, not being a transfer made to or with the sanction of the liquidator, and any alteration in the status of the members of the company, made after the commencement of a voluntary winding-up, shall be void”.

The winding up comes barely four years after the Board of Directors of Rak Unity Petroleum Company assured shareholders that its proactive strategies would sustain improvements in the operations of the company in the years ahead.

The board had assured that company would maintain its strong customer base by adhering to its four key pillars of quality assurance, innovative approach to meeting customers’ demands, great customer service and consistent on-time product delivery.

RAK Unity had recorded a turnover of N8.27 billion and gross profit of N460.45 million for the nine-month period ended December 31, 2016. The petroleum-marketing company had reported a turnover of N6.68 billion and gross profit of N448.70 million for the 12-month period ended March 31, 2016.

The board of directors then stated it decided to pay a dividend of 10 kobo per share to shareholders for the period ended December 31, 2016 after considering future growth and expansion of the company.

The retained earnings were to be reinvested in order to ensure sustainable growth, expansion and stability.

By Taofik Salako, Deputy Group Business Editor

Ecobank Transnational Incorporated (ETI) Plc- the holding company for Ecobank Nigeria and others – grew its profit after tax by 29 per cent to N62.6 billion in the first half, showing a steady outlook across the top-line and the bottom-line.

Key extracts of the interim report and accounts for the six months ended June 30, 2021 showed that the group grew its net profit by 29 per cent to N62.6 billion in 2021 as against N48.535 billion in comparable period of 2020. Gross earnings increased by 13 per cent to N 442.9 billion from N392.013 billion while revenue rose by 15 per cent to N334.9 billion in 2021 as against N290.313 billion in 2020.

Operating profit before impairment charges rose by 33 per cent to N138.3 billion in first half 2021 compared with N104.246 billion in first half 2020. Loans and advances to customers stood at N3.634 trillion while deposits from customers grew by seven per cent to N7.861 trillion.

Total equity closed first half at N803.2 billion while total assets stood at N11.022 trillion, representing an increase of six per cent from N10.384 trillion recorded by December 31, 2020.

Group Chief Executive Officer, Ecobank Transnational Incorporated (ETI) Plc, Ade Ayeyemi, said the group was focusing on achieving execution momentum in its payment business and the sustained reliability of all its platforms.

He said the group is also focused on driving increased adoption of its products and services, bringing non-performing loan ratio down and exceeding the expectations of its customers to truly be the pan-African bank that Africa trusts.

“These, together with all our investments and achievements to date, will enable us collectively grow revenues and generate long-term return of capital to our shareholders, despite the near- term challenges from COVID-19,” Ayeyemi said.