The Nation Newspaper

Tag: acquisition

  • GNI confirms acquisition, clarifies status of new investors

    Great Nigeria Insurance (GNI) Plc at the weekend confirmed earlier exclusive reports by The Nation that  a new core investor had acquired 75 per cent majority equity stake in the insurance company.

    The Nation had reported that Insurance Resourcery and Consultancy Services Limited (IRCSL) had acquired 75 per cent equity stake previously held indirectly by Wema Bank in a deal valued at N3.24 billion. A total of 2.87 billion ordinary shares of 50 kobo each of GNI were crossed in a single deal to Insurance Resourcery at N1.13 per share through the negotiated cross deal window of the Nigeria Stock Exchange (NSE).

    At N1.13 per share, the transaction cost represents 126 per cent increase on the current market value of GNI, which has stagnated at its nominal value of 50 kobo per share. GNI currently has total paid up capital of 3.827 billion ordinary shares of 50 kobo each with a market capitalisation of N1.91 billion.

    In a regulatory filing at the weekend, which confirmed the conclusion of the acquisition, GNI clarified that IRCSL is a special purpose vehicle representing a consortium of investors. The insurance firm did not however disclose the identities of the new investors.

    GNI said the transaction value underscores its inherent value citing the company’s attractive real estate portfolio, debt-free balance sheet and long history as one of Nigeria’s oldest insurance companies.

    Managing Director, Great Nigeria Insurance (GNI) Plc, said the conclusion of the acquisition would enable the company to focus on further unlocking its vast potential with a view to delivering better returns to shareholders.

    According to her, the directors of the company would focus on consolidation of its market share in identified niche markets, excellent customer service, prompt claims payment and aggressive investment income to in the overall strategy to improve the company’s performance and increase shareholders’ return.

    Apparently referring to its inability to meet the 20 per cent free float for its category of listing on the NSE, GNI stated that IRCSL was committed to maintaining the listing of the company on the Exchange, adding that there are ongoing discussions with appropriate regulatory authorities.

    A report by the Exchange indicated that GNI currently has 16 per cent of its issued shares in the hands of the general investing public as against the minimum requirement of 20 per cent for its category of listing.

    Following Central Bank of Nigeria (CBN)’s banking regulatory regime that required banks to either divest from non-core banking subsidiaries or form a holding company to hold those subsidiaries, Wema Bank had opted to divest from its non-core banking businesses including GNI. The bank had since divested from Wema Insurance Brokers Limited, Wema Registrars Limited, Independent Securities Limited and Whyte Cleon Limited. It also integrated operations of four subsidiaries into its core banking business including Wema Asset Management Limited, Wema Securities and Finance Plc, Wema Homes (Savings and Loans) Limited and Wise Properties Limited. Wema Bank had 100 per cent equity stakes in the trio of Wema Registrars, Wema Insurance Brokers and Whyte Cleon Limited while it had 94.7 per cent stake in Independent Securities and 75 per cent in GNI.

  • Bayelsa sets up task force on illegal acquisition of govt land

    Bayelsa State government has constituted a special task force to retrieve all government land illegally acquired by individuals, communities and companies within and outside Yenagoa, as part of efforts to create a planned modern city.

    Speaking at the inauguration ceremony of the task force in the Government House, Yenagoa, Governor Dickson charged its members to commence the process of recovering all such land from trespassers in the next two weeks.

    The governor, who condemned individuals and communities who take over government land within and outside Yenagoa, even after compensation has been paid, noted that the development has contributed to making the capital city a slum.

    He directed the Committee for Urban Development, Board of Physical Planning and Development Control, the Ministry of Lands and Housing and their agencies, to notify owners of buildings that failed to conform with the state’s Master plan for such structures to be demolished.

    Governor Dickson, however, noted that the team responsible for recovering government land and property would carry out an assessment for structures already built on government land, and that if the development attracts a waiver, an appropriate levy would be paid.

    He said land developers were expected to follow due process by acquiring approved building plan from the Ministry of Lands and Housing and other relevant agencies, adding that it is the standard practice in any modern city.

    According to Governor Dickson, his administration is creating land for development purposes in the new Yenagoa city, Agbura and Ayama for low, medium and high density planned areas, which he said will be unveiled soon.

    To enable members of the task force carry out their duties effectively and successfully, the governor said security agencies would support them to deliver on their assignment.

    Responding, the Chairman of the Special Task Force, Mr. Bobolayefa Woupele, expressed gratitude to the governor for finding the members worthy for the task ahead and promised to work with all the stakeholders to meet government’s expectations.

  • Institute, club sign pact on skill acquisition

    The Federal Institute of Industrial Research, Oshodi (FIIRO), has signed a Memorandum of Understanding (MoU) with the International Association of Lions Club, District 404B1, Nigeria, on skill acquisition and training of youth and women in the district.

    The institute will educate them capital needed for the project. The Bank of Industry (BOI) will also fund participants’ businesses and technology plans.

    The agreement was reached in Abeokuta during the investiture of Waheed Kadiri as the District Governor of Lions 404B1.

    Senator Adegbenga Kaka, who chaired the event, commended the institution and the club for the initiative, which he noted will go a long way in diversifying the economy.

  • ‘Skills acquisition among youths’ll curb cultism’

    A House of Representatives member of the All Progressives Congress (APC),  Wale Raji, has said acquisition of skills and youth empowerment will reduce cultism and other social vices.

    Raji, who is representing Epe, addressed reporters yesterday in Lagos on his plan to ensure that youths in his constituency get the requisite skills and empowerment to take many of them from the streets.

    The lawmaker said his Youth Empowering Scheme, in partnership with the Lagos State Technical and Vocational Education Board (LASTVEB), had been training about 300 youths in his constituency.

    Raji said the participants would be given tools in their areas of skills and empowerment to be self-sufficient.

    He said: “Nobody can make them rich but an opportunity can be created for them to acquire vocational skills that will always put food on their table and make them financially independent. About 129 participants will soon graduate and the rest will be assisted to upgrade their businesses.”

  • Sterling Bank dumps Keystone acquisition plan

    Sterling Bank dumps Keystone acquisition plan

    Sterling Bank Plc has withdrawn its bid to buy Keystone Bank Limited over the price sought for the lender rescued bridge bank.

    “We felt we wouldn’t get it at the price we are willing to pay,” Abubakar Suleiman, the Chief Financial Officer for Sterling Bamk, told Bloomberg, adding: “Keystone also didn’t fit in with the lender’s “current strategy.” He, however, did not give more details.

    Keystone Bank Limited is the last of the three bridged lenders bought by the Asset Management Corporation of Nigeria (AMCON), set up by the government to buy bad loans after a debt crisis in 2009 threatened to cause the industry to collapse.

    Keystone has assets of N318 billion ($1.1 billion) and operates two international units, according to Amcon, which appointed Citigroup Inc.’s Nigerian unit and FBNQuest, a unit of FBN Holdings Ltd., as advisers on the sale.

    “Sterling Bank will focus on growing its existing businesses, unless “another opportunity comes for inorganic expansion,’’ Suleiman said. According to him, the lender plans to raise N65 billion in Tier 2 capital with 20 per cent of the first tranche of N35 billion of bonds to be sold this month.

    “The bank expects loans to rise by 20 per cent this year following the devaluation of the naira,” Suleiman said. That compares with an earlier projection of less than 10 per cent.

    Sterling Bank Chief Executive Officer (CEO), Yemi Adeola, had at a meeting with journalists in Lagos late last year, said six commercial banks are likely to seek mergers and acquisitions this year. The mergers, he predicted, are triggered by the shock created in their assets and balance sheet sizes in the face of declining oil prices.

    Adeola said he envisaged possible shrinking in the number of local banks this year. “There are already moves suggesting that trend,” he said, but did not name any bank. The bank chief said two international banks were discussing with local lenders on possible acquisition.

    Adeola said the Nigerian banking industry was the most regulated sector in the country, thereby affecting banks’ performance.  “To say that everything will be rosy in 2016 will be deceiving ourselves. I think if the opportunities arise for banks to pursue further consolidation, we could see two or three,” he said.

  • ‘Housing man’s most expensive acquisition’

    The real sector has been identified as the first casualty in the event of a fall in any country’s currency. This is because the sector is a highly capital intensive one. This view was expressed by the managing director of Interstate Architects Limited, Mr. Olusegun Ladega, in a chat with The Nation.

    Ladega, expressing concerns over the crashing naira against other currencies and its effect on the real estate sector, regretted that when situations of a crashing local currency persists in an economy, then most potential investors in real estate are usually compelled to make a downward review of their budget, which in the overall, takes a toll on the industry.

    “Construction has never been cheap, so when the economy gets bad, then people will naturally make some form of adjustment in order to suit their pockets. It may interest you to know that the real estate sector had for long been feeling the heat of the downward trend in the economy, except that it got more pronounced this year as a result of the drastic fall in the value of the local currency- the naira,” Ladega disclosed, adding that the most expensive acquisition of any individual is the building of his own house, no matter how simple the house may be.

    Decrying the current financial position of the country, Ladega posited that the situation should serve as a wakeup call to the government to now look beyond crude oil as the country’s major source of income. The real sector, notwithstanding its challenges, he agreed, can significantly contribute to the economy if it is properly positioned and its potentials harnessed. Indeed, the sector has had its fair share of challenges especially the spate of building collapse, and the absence of good policies like the National Building Code (NBC).

    Ladega cautioned that the absence of the NBC should not be misconstrued as the reason for the incessant building collapse being experienced across the country. Rather, he argued, every single activity that is undertaken in the process of bringing about a building in the country has regulatory body that contributes either as a regulator or policy formulator. The problem, he further said, is that failure of regulations’ enforcement has always been the bane in the industry. “When there is enforcement by the regulatory bodies assigned to monitor these developments, the incidences of collapse would be greatly reduced to the barest minimum,” he assured. This he explained can be achieved by certification of construction personnel, monitoring and inspection of buildings from conception

  • Etisalat sues MTN over Visafone acquisition

    Etisalat sues MTN over Visafone acquisition

    Etisalat Nigeria has sued MTN Nigeria and Visafone Ltd, challenging MTN’s use of the 800megahertz (MHZ) spectrum following the acquisition of Visafone.

    MTN sued the Nigerian Communications Commission (NCC) over the imposition of N780billion fine on it by the regulator for harbouring some 5.2million pre-registered subscriber identity module (SIM) cards on its network in violation of extant rules.

    Etisalat said it considered the action necessary to prevent the use of the spectrum by MTN at this time, as it will entrench the dominance of MTN in the retail data services market.

    “You will recall that MTN Nigeria was declared dominant by the Nigerian Communications Commission (NCC) in 2013 and remains dominant in the wholesale leased line and retail voice markets.

    “The use of the 800MHz spectrum to deploy broadband services ahead of its competitors, particularly those who prior to MTNs purchase of Visafone, held similar spectrum bands as MTN, will further entrench MTN’s dominance in the Nigerian telecommunications sector,” Etisalat said in a statement confirmed by its Head of Media, Chineze Amanfo, yesterday.

    The telco said it had, in addition to the legal action and in line with Sec tion 86 of the Nigerian Communications Act, 2003, engaged the NCC to understand the basis of its decision to approve the acquisition. “As you are aware, the matter is already in court as such, we are restrained from commenting further on the matter,” the telco added.

  • Benin DisCo votes N2.7b for meter acquisition

    The Benin Electricity Distribution Company (BEDC) has set aside N2.7 billion to acquire smart meters for the over 741,000 customers in its network, The Nation has learnt.

    The Chief Executive Officer, (BEDC), Mrs. Funke Osibodu, stated this during an interaction session with reporters in Lagos. She said the company will start with installation of over 100,000 customers in the first instance.

    She  said the firm is aggressively addressing the operations, maintenance, and human resources challenges it inherited from the defunct Power Holding Company of Nigeria (PHCN). She listed some of the operations and maintenance issues BEDC inherited to include, aged and poorly maintained system, unreliable and overloaded system, low demand side management (DSM) initiative, corporate governance challenges, lack of technology intervention to curb revenue leakage and lack of skilled manpower.

    She noted that since takeover of the utility in November 2013, several upgrades have been carried out, and still ongoing, while reliable energy audit figures are unknown. Revenue Assurance Unit commenced with 250 feeder check meters in place for energy accounting, while enumeration and customer regular energy audit have commenced, she added.

    Osibodu stated that major improvement in safety practice has also begun to address the poor safety practices and unsafe network for the public, caused by non-abidance to standard safety procedures and regulations before undertaking network maintenance work, adding that improvement in safety standards and equipment are impressively in progress.

    On manpower challenges the company inherited, according to Osibodu, include untrained manpower to handle preventive and breakdown network maintenance, indulgence in unethical activities by the field force leading to customer mistrust in the DisCo, de-motivation amongst employees leading to lack of will to perform, lack of performance oriented culture, and large workforce with inadequate skill set, among others. The BEDC chief, however, said large scale training has commenced at all levels, and commercial disciplinary process put in place while performance-oriented culture has been entrenched with recruitment of over 500 skilled workforce.

    Osibodu said the BEDC has 741,376 customers and to give top service to them, the firm has recruited 250 young graduates, adding that the recruitment was carried out in two batches. The first batch consisted of 100 young graduates who have since completed their training, while the second batch of 150 young graduates are currently undergoing training.

    She expressed confidence that the N2.7 billion investment in metering project will adequately address customers meter challenges. She lamented that the BEDC took the blame for every problem in the power sector because it directly interfaces with the power consumers, adding that the customers don’t know that the distribution company doesn’t have control over the generation and transmission companies.

    “We don’t have control over generation and transmission. We are like collection agents for the entire power industry. Across the power supply value chain in the Nigeria Electricity Supply Industry (NESI), we collect the entire money but just get 25 per cent of the total collections.

    “Once we collect the billing from the customers, the generation companies (GenCos) get 60 per cent and pays the gas suppliers, Transmission Company of Nigeria (TCN) gets 11 per cent, while the regulator, bulk trader and market operator get the remaining four per cent.

    “We are directed to meter all our customers within one year, but we are constrained by the limit of capital expenditure (capex) that we can invest. We at BEDC cannot spend above N4 billion per year as capital expenditure and if we invest above that, we won’t be able to recover our investment due to the present tariff structure,” she added.

  • NGO establishes skills acquisition, diabetic care centres

    The Centre for Edo Delta Development Initiative is renewing its effort to tackle diabetes, as well as provide skills training programmes for the people of the Niger Delta.

    Speaking in an interview with Niger Delta Report, Nosasu Omoregbee Edigin, explained that the initiative has been in existence since 2012 but was crystallised to be Centre for Edo Delta Development initiative and registered as a nongovernmental organization in 2014 by the founding Grandbeacons led by Chief Sam Igbe, who is the Iyase (Prime Minister) of Benin Kingdom.

    He said: “Our aim is to eradicate poverty and tackle the debilitating effects of diabetes on the inhabitants of the Edo and Delta states.

    “The initiative is also involved in human capital development of the inhabitants in these states through periodic empowerment training programmes. The initiative has successfully empowered over 5,000 persons in seven local government areas in Edo state in Plaster of Paris (POP) ceiling board design and moulding, liquid soap, sanitizer, insecticide, air freshener making and mobile fish farming. A percentage of the beneficiaries are funded by the initiative to enable them kick-start the new business the initiative has empowered them with.

    “There is also a special focus on the physically challenged persons to make them self-employed and positively useful to the society.

    “On the eradication of diabetes, the initiative reaches out to the nooks and crannies of Edo and Delta states region with well-planned networks of diabetes awareness campaign programmes through testing and dispensing of free drugs to sufferers. We have successfully done diabetic testing for over 10,000 persons and commenced treatment for over 1,000 persons diagnosed by our medical personnel during our awareness campaign programmes.”

    On the modus operandi of the initiative, Edigin explained that CEDDI Head Office is located at the Unity Bank Towers on Mission road, Benin City, Edo state, while its Publicity Office at Urubi street, Iyaro, Shop 30, Ero Shopping Mall Benin city-Edo state and he Delta Publicity office is at Jakpa road, Effurun.

    “We are opening our skills acquisition and diabetic care centre at 15 Sapele road, opposite Federal High Court, Benin City.

    “The initiatives grand structure is led by Chief Sam Igbe, who is called the General Grandbeacon. Other grandbeacons are Engr. Chris Ogiemwonyi and yours truly. The initiative is structured to also have body of Partners, body of Financial Supporters, body of Voluntary Supporters, Executives and Beneficiaries.

    “The body of Grand beacons with the Initiative Coordinator gave birth to the initiative and is responsible for the formulation and preparation of the policy action of the initiative stating its style, aims and objectives. They also establish the initiatives body ethics and supports the initiative with funds to kick-start the agreed programmes by their body.

    “The body of  partners are persons or bodies that annually support the initiative with funds, while the body of Financial Supporters are persons or bodies that have supported the initiatives programmes with funds but are not annual financial supporters. We also have the body of Voluntary Supporters, who are persons that offer their voluntary physical support to the initiatives aims and goals and the body of Executives are workers of the initiative,” he added,

    Meanwhile, Edigin dispelled rumour that the body was formed to further the governorship ambition of one of its leaders, Engr Chris Ogiemwonyi, stressing that nothing could be farther from the truth.

    He maintained that Ogiemwonyi had been involved in the initiative long before he aspired to become the Governor of Edo state, adding, “The initiative was created to serve the people of Edo and Delta state region with a core mission to eradicate extreme poverty.”

     

     

  • Power institute, firm partner on skills acquisition

    The National Power Training Institute of Nigeria (NAPTIN), has partnered TE Connectivity, to improve the skills of workers in the sector.

    TE Connectivity prided itself as a global leader in connectivity, with expertise in fusing  solutions together in order to bring about the desired growth  in an organisation.

    NAPTIN, in a statement signed by its Director-General, Reuben Okeke, said, the sector has experienced setbacks due to problems such as inadequate  infrastructure and poor output of energy efficiency, adding that the development informed the decision of  NAPTIN to partner with TE Connectivity,   in order to develop solutions that would help  in improving the skills of workers in the power sector.

    He said:  “The sector needs skilled technicians, and this partnership with TE is meant to help achieve sufficiency in power supply, which is one of the steps taken to encourage industrialisation and further improve the economy.

    “This is very important at this time, as the sector needs to develop its talent base to improve electricity supply in Nigeria.’’