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Tag: Investor

  • World’s investor week focuses on sustainable investments

    World’s investor week focuses on sustainable investments

    Investment regulators and stakeholders across the world yesterday began a week-long campaign to promote sustainable investment and enhance investors’ protection amidst changes in the global securities market.

    The 7th annual World Investor Week (WIW) is focusing on three main themes of investor resilience, crypto assets and sustainable finance. Additional themes explore frauds and scams prevention, basics of investing, technology and digital finance. Also, countries have identified other topics relevant to their local campaigns.

    Chairman, Board, International Organisation of Securities Commission (IOSCO), Mr. Jean-Paul Servais, said WIW campaign is a key practical initiative through which IOSCO is supporting investor education and protection.

    According to him, the main themes of WIW 2023 are an integral part of the IOSCO priorities regarding investor protection and sustainable and digital finance.

    “The WIW theme on sustainable investment in the field of investor education builds on IOSCO’s achievements regarding sustainable finance, such as the recent endorsement of the ISSB’s global sustainability reporting standards,” Servais, who is also Chairman, Financial Services and Markets Authority, Belgium, said.

    He outlined that the WIW also focuses on crypto-assets, where IOSCO will deliver a global policy handbook to address key risks to investor protection and market integrity.

    Read Also: NGX tightens brokers’ rules to enhance investors’ protection

    He noted that the WIW’s key messages are a reminder of the importance of good financial education for investors, pointing out that financial education is a complementary tool to regulation and supervision to enhance investors’ awareness, critical sense and rational behaviour.

    IOSCO explained that given the increasing participation of retail investors in capital markets in recent years, these investor issues have risen to the top of the WIW agenda. As in previous years, the G20, under the India Presidency, is supporting the WIW campaign.

    “Financial innovation is impacting the financial system, bringing with it new business opportunities for the industry and potential benefits for investors, but also posing challenges and risks that need to be addressed in an effective way.

    “Financial education has an important role to play in conjunction with investor protection measures taken by regulators and the industry,” IOSCO stated.

    Chairman, IOSCO Committee 8, Pasquale Munafò said new jurisdictions and stakeholders, from both developed and emerging markets, are joining the WIW campaign this year.

    “This interest underscores how financial education and investor protection have become top priorities for regulators and market participants around the world. The WIW welcomes the participation of new supporters in this global effort,” Munafò, also of Consob, Italy, said.

  • Safetrust Bank: we’ve made full refund to investor

    Safetrust Mortgage Bank Limited yesterday said it has given financial support to Macbosh Properties Limited to fully refund the investment made by Mr. Kunle Ogunmefun in Safetowers.

    In a statement by its Marketing and Corporate Communications head  Mr. Maurice Ibie, the bank affirmed that Macbosh Properties entered into a commercial transaction with Ogunmefun on Safetowers located along the Lekki-Epe Expressway.

    The statement said: “Safetowers consists of three high-rise blocks of flats, and penthouse duplexes.

    “Mr Ogunmefun indicated interest in the project and subscribed to a block which has 16 units of three bedroom apartments and two units of five bedroom penthouse duplexes.

    “The estimated construction and delivery time was for a period of 24 months at a total price of N710,000,000.00.”

    Ibie said Ogunmefun previously bought some units in “Safecourt Apartments” financed by Safetrust Mortgage Bank, which was more than twice the size of Safetowers in monetary terms, and that the project was successfully developed and delivered.

    According to bank, it was agreed with Ogunmefun under the terms of Memorandum of Understanding (MoU) executed with Macbosh Properties that on receipt of the full N710million, Macbosh Properties would complete the property within 24 months.

    The bank said contrary to the MoU, the total sum was not paid up-front, and that Ogunmefun paid N550million in tranches through Currant Limited.

    The bank maintained that despite the alleged breach, Macbosh Properties in good faith, commenced the construction of the property in line with its obligation in the MoU.

    It said the 2015 economic crisis led to hike in construction costs, adding that had Ogunmefun paid at the agreed time, the delay would not have led to the increase in construction price.

    The bank stated that while it was not normal practice to make refund without selling any property or getting a new buyer, Macbosh Properties had proposed that a refund of payment be done in two instalments.

    Safetrust said it made an initial refund of N275million to Ogunmefun despite not having resold the units.

    It noted that this was still not acceptable to Ogunmefun, who petitioned the Economic and Financial Crimes Commission (EFCC).

    The bank said with its support, Macbosh Properties had fully refunded the outstanding balance of N275million to Ogunmefun, which completes his N550million investment.

    “This payment brings the transaction to an end,” the statement added.

  • Council partners investor on CSR

    An entrepreneur, Mr. Ola Folorunsho, has concluded plans to partner Amuwo Odofin Local Government Area of Lagos State in drainage clearing at the Mile 2 axis of the area.

    Folorunsho, who is the Chief Executive of Western Concrete, spoke when he visited the local government chairman, Valentine Buraimoh, in Festac Town.

    He said: “As part of my corporate social responsibility (CSR), I will like to inform you, sir, of my intention to clear the drains at Ward AI and AII.

    “We all know that there is a shortfall in IGR and the government cannot do it alone; hence, my resolve to complement the efforts of the council.”

    The investor, who is also a Lagos State House of Assembly aspirant for Amuwo Odofin Constituency I, hinted that the clearing of the drains would begin next Monday.

    Buraimoh thanked the entrepreneur for his initiative.

    The council chief sought the assistance of other investors and corporate bodies to partner the local government in other areas of development.

     

  • Foreign core investor seeks to buy out 7-Up’s minority shareholders

    Affelka SA, the foreign majority core investor in Seven-Up Bottling Company Plc, has launched a bid to buy all outstanding shares held by minority shareholders in the company, in a move reminiscent of a similar decision by its competitor, Nigerian Bottling Company (NBC).

    Regulatory filing yesterday showed that Affelka SA has secured initial regulatory approval to acquire all the “outstanding and issued shares of seven-Up Bottling Company that are not currently owned by Affelka”.

    Affelka is offering N112.70 per share for the 171.54 million ordinary shares of 50 kobo each held by the minority shareholders, representing 26.78 per cent of Seven-Up Bottling Company’s issued share capital. The bid price represents 15 per cent premium on the last traded share price of the company on August 9, 2017, the last business day prior to the date the proposal was received from Affelka SA by Seven-Up Bottling Company’s board.

    According to the proposal, the acquisition would be carried out through a scheme of arrangement under Section 539 of the Companies and Allied Matters Act (CAMA) and other applicable rules and regulations.

    Already, Seven-Up Bottling Company has received the “No Objection” approval of the Securities and Exchange Commission (SEC). However, the scheme is still subject to the approval of the shareholders at a Court-Ordered Meeting as well as the approval of the Federal High Court.

    The NBC had acquired minority shares and delisted from the Nigerian Stock Exchange (NSE) amidst protests by Nigerian retail shareholders.

    The Nigerian Stock Exchange (NSE) had in October 2017 downgraded Seven-Up Bottling Company Plc from its special pricing status category following the depreciation in share price of the company.

    The “high-priced stocks”, according to the NSE categorization, are stocks with share prices of N100 and above and regular and pre-determined level of activities. In 2012, the NSE had alongside the introduction of market-making introduced a pilot programme under which stockbrokers could move prices of “high priced stocks” with 10,000 shares as against the general operating rule of 50,000 shares for the movement of share prices of other stocks.

    The NSE indicated that it downgraded Seven-Up Bottling Company from a “high-priced stock” category to the general stock category with effect from today, Monday October 23, 2017.

    With the reclassification of Seven-Up Bottling Company from the “high-priced stocks” list, stockbrokers will only be able to move the share price of the company with 50,000 shares.

    “We bring to your notice that 7up Bottling Plc has qualified to be reclassified from a high-price stock to a medium-priced stock, as the company’s shares hit below the N100 mark on 30 May 2017, and trades below N100 up till the close of business on 17 October 2017. This indicates that 7up Bottling Plc has traded below N100 in at least four out of the last six months. The stockbrokers will be able to move the price of 7up Bottling Plc with 50,000 units with effect from 23rd, October 2017,” the NSE stated.

  • Investor holds Topping Out for Cornerstone Towers

    Investor holds Topping Out for Cornerstone Towers

    Cap Phoenix Cornerstone, a joint venture between African Capital Alliance and Cornerstone Insurance Plc, last week, held a topping out to celebrate the completion of Cornerstone Tower, a 12-floor office project, adjacent to the Four Points by Sheraton Hotel in Oniru, Lagos. With this, the Cornerstone Tower has now reached its full height and is scheduled to open for business in the second quarter of next year.

    With lettable space of 12,040 square metres, once completed, this Grade A, ultra-modern office building will boast of eight floors of flexible office space and meeting rooms; four floors of multi-level parking; a reception area and a ground floor café. Besides, the building, which has been certified as a “Green Building,” will rank as one of the country’s real estate developments to be proud of, considering its high technical specifications for installed building services, security and state-of-the-art finishes.

    Capital Alliance Chief Executive Officer, Mr. Obi Nwogugu, revealed that the office spaces are designed with high efficiency and flexibility, and are built with raised floors and suspended ceilings with impressive natural lighting and ventilated spaces, allowing for modular spaces ranging from 200 square meters up to 1,400 square meters on each floor. Besides, he noted that the building’s central location on Victoria Island will provide convenient private and public transport access with direct links to Lekki, Ikoyi and the Lagos Mainland.

    Describing the building’s features further, the Project Consultant, Mr. Roti Delano, said it boasts of secure parking for over 203 cars across the four multi level floors; this is aside the surface parking space, while drivers room is also provided for on every floor.

    Other features of the building, he noted, include two 1000 KVA and one 600 KVA Cummins diesel engine generators; 81 solar panels of 250 W each; two 1000 kva 11/0.415kv 3-phase indoor dry type cast resin step-down transformer with off-load automatic tap changer; energy efficient pumps; sensor motion  lights; four passengers Lifts; 14 passengers high speed elevators; including fire lift. The structure is also equipped with fire fighting systems like sprinklers, wet riser, fire hose reels; fire extinguishers; FM-200, and smoke detectors, among others.

    Also, Cornerstone Towers is fitted with modern security systems, which include 24/7 control centers; IP Closed Circuit Television System (IP CCTV); IP Access Control System and Building Management System (BMS).

    Similarly, in terms of information technology, the building is not lacking. For instance, BCL Construction and Civil Engineering Managing Director, Mr. Roda Fadlallah, explained that to service its telecommunications facility, a well structured cabling system is provided with general services network, including connectivity to the building services like IP CCTV, IP Access control, and Voice communication, Roof Aerial. The IT facilities, he noted, include fiber optic cable for fiber backbone across the various office spaces.

  • NNPC chief: investor soon for Benue bio-fuel plant

    NNPC chief: investor soon for Benue bio-fuel plant

    Plans are underway to get investors for the bio-fuel plant in Benue State, it was learnt yesterday.

    Group Managing Director of Nigeria National Petroleum Corporation (NNPC) Dr Maikanti Baru spoke after a meeting with a delegation, led by Deputy Governor Benson Abounu.

    In a statement by the Group General Manager, Public Affairs Division, Ndu Ughamadu, Baru,  said the investor would be named soon.

    Represented by the Chief Operating Officer, Ventures Directorate, Dr Babatunde Adeniran, Baru explained that the core investor will provide 70 per cent funding, with the state and NNPC providing the balance.

    According to him, the plant will generate about one million jobs, and will link the energy as well as agricultural sectors, through commercial production of bio-fuels from selected energy crops.

    The NNPC boss listed other components of the project as sugarcane feedstock plantation of about 20,000 hectares; cane mill and raw/refined sugar plant producing 126,000 tonnes annually.

    The plant also includes a fuel-ethanol processing plant, with a capacity of 84 million litres annually.

    His words: “The bio-fuels projects will also help to establish the bio-gas cogeneration power plant, which will generate 64mw; carbon dioxide recovery and bottling plant that will produce 2,000 tonnes annually, as well as animal feed plant that will produce 63,000 tonnes annually.”

    Abonu said: “Benue State is offering 20,000 hectares of irrigable land space along the bank of River Benue as its equity contribution to the project in addition to a yet-to-be specified tranche of funds to shore up its stake to the level of directorship in the yet-to-be constituted board.”

  • Ajaokuta Steel investor debunks minister’s dispute resolution claim

    A director of Global Steel Holdings Limited (GSHL), Dr. S. O. Nwanbuokei, an engineer, has debunked a claim by Minister of Mines and Steel Development Dr Kayode Fayemi that the protracted litigation surrounding Ajaokuta Steel has been resolved.

    In his speech at the Second Annual Nigeria Mining Week, the minister said the signing of a ‘Modified Concession Agreement’ between Nigeria and Global Infrastructure Nigeria Limited effectively resolved the protracted litigations surrounding the ownership of Ajaokuta Steel.

    “The implication of the signing is that ownership of Ajaokuta Steel Company Limited has now reverted to the Federal Government of Nigeria, and we can now proceed to engage a new core investor with the financial and technical capacity to run the steel complex.”

    But, Nwanbuokei, whose firm is a party to the dispute said in a statement that he was not aware of the resolution, nor has a settlement been reached.

    “Although the company expects to be party to the resolution so referred to, we are not aware that the Ajaokuta Steel Company issue has been resolved. We are aware, however, that the delay in resolving the matter is not caused by GSHL. The company has been open to and cooperated in all the requisite terms precedent to an amicable resolution of the matter.

    “We put in all our efforts to conclude the Due Diligence process in the NIOMCO Itakpe with the conviction that the next phases of compliance with the terms of the International Court of Arbitration would be speedily determined. We regret that this has not been the case.

    “We are afraid that a message of a similar incorrect formulation may grossly mislead stakeholders both in Nigeria and abroad. We, therefore, request the statement to be removed from the official website address of the Ministry of Steel.

    “We need to emphasise that GSHL and the FGN are still in mediation claim on assets which is still binding and therefore no investor can come in until this is finally determined. We are also convinced that the over three years of this mediation is more than enough time to have all the associated issues of the Ajaokuta Steel company and indeed the Nigerian steel dream concluded.

    “We, therefore, beseech mediators to eschew extraneous interferences and distractions in order to realise the set objectives of this process,” he said.

  • Stakeholders call for concerted efforts on investor education

    Stakeholders at the Nigerian capital market have called for increase in investor education and development of attractive and innovative products to enhance domestic participation in the Nigerian stock market.

    At an Investor Clinic organized by the Securities and Exchange Commission (SEC) in Lagos as part of activities to mark the world investor week (WIW), stakeholders noted the need for continuous campaign to enlighten Nigerians on the benefits of savings and investments with a view to deepening the stock market with retail investors, especially the youth.

    Director General, Securities and |Exchange Commission (SEC), Mr. Mounir Gwarzo, pointed out that the world investor week was a week set aside for educating investors on their rights.

    Gwarzo, who was represented by the executive director, market development of SEC, Mr. Eddy Rowlands said that the Commission would continue to embrace initiatives that would move the market forward.

    According to him, the WIW was a week set aside primarily for educating investors to let them know what their rights are. Concentrating or notifying investors what the market regulators and operators are doing in protecting their investments.

    He noted that there is low participation of investors within the age of 25 years investing in the capital market, and this call for more enlightenment to the younger generation.

    He added that the Commission had established financial inclusion programmes to increase market participation and as well boost collective investment scheme among market women and men.

    Founder, Independent Shareholders Association of Nigeria (ISAN), Mr Sunny Nwosu said that there was need for friendly policies and regulation by the capital market regulators.

    Nwosu said lack of proper compensation to investors that lost their funds during the market meltdown contributed to poor investor confidence in the market.

    He also decried the move to invest the unclaimed dividend funds into special funds noting that this initiative will not be supported by shareholders.

    Nwosu said that the proposed issuance of electronic annual report should not be made mandatory but optional, noting that extant law stipulated that annual reports must be posted to shareholders 21 days before the annual general meeting.

    Chief Executive Officer, AFEX Commodities Exchange, Mr. Deji Balogun commended the Commission for taking the capital market to the younger generation.

    Balogun also tasked market operators on the need for introduction of new products that would appeal to the younger generation.

    He said that opening of stockbroking accounts for new investors should be done through smart phones in line with present realities.

    Registrar, Institute of Capital Market Registrars, Dr. David Ogogo, said that the issue of the unclaimed dividends would soon be an issue of the past as registrars would continue to work with market regulators and operators to ensure effective implementation of the 10-year capital market masterplan.

  • New major investor acquires 4.4% stake in Livestock Feeds

    A new major investor acquired 4.4 per cent equity stake in Livestock Feeds Plc in pre-arranged deals valued at about N133 million.

    The transactions saw exchange of 132.96 million ordinary shares of 50 kobo each of Livestock Feeds at above-market price of N1 per share. The transactions represent 4.4 per cent of the total issued shares of Livestock Feeds.

    The above-the-market price of the pre-arranged deals also appeared to impact positively on the market price of Livestock Feeds, which rose by 4.94 per cent to close at 85 kobo per share.

    The deals were done through the off-market, negotiated cross deals window of the Exchange and as such was not subjected to the dynamics of price discovery for the particular period. Off-market trade implied that the deal was sealed outside the floor of the NSE.

    The negotiated cross deal platform of the Exchange is a special-purpose trading platform that is meant for voluminous transaction. By the cross deal, it implies that the buyer and the seller had been prearranged and the transfer at the stock market was a mere perfection of the agreement between the two. The negotiated cross deal allows the parties to the deal to close the deal at reduced cost.

    While the details of the new major investor are still unknown, market analysts said UAC of Nigeria might be selling stake to special investor with technical capability.

    Livestock Feeds recently launched a bid to raise about N750 million new equity funds from existing shareholders through a rights issue of 1.0 billion ordinary shares of 50 kobo each at a price of 75 kobo per share. The rights issue was pre-allotted on the basis of one new ordinary share for two ordinary shares already held by the shareholder.

  • $1.2b Etisalat debt: Banks consider legal action against core investor

    $1.2b Etisalat debt: Banks consider legal action against core investor

    The 13 banks that raised $1.2billion loan for mobile operator Etisalat Nigeria may press criminal charges against directors of Mubadala Development Company of the United Arab Emirates (UAE).

    This is the latest option the banks are considering to recover the outstanding part of the facility.

    It was gathered that the banks held a meeting at the weekend to consider engaging  a London-based counsel to assemble a team of lawyers to press charges against Directors of Mubadala for abdicating their contractual obligations.

    A source close to the meeting said the banks explored the legal option to save Etisalat Nigeria which they still see as a viable business. They are also said to be interested in ensuring the continuity of Etisalat Nigeria.

    The source said: “The banks have a different position now. The first thing considered at the meeting is the legal option to compel Mubadala through a Mareva injunction to honour its obligations to the consortium. This is because other than this loan crisis, Etisalat is a viable business. The banks have access to theirs books and they can see that despite the crisis, Etisalat’s business value has not diminished. That is why the banks took that position that they are not interested in a takeover of the business. They are in fact more sympathetic to the Nigerian investors led by Hakeem Belo-Osagie and are willing to work with him to steady the ship and keep Etisalat business going while searching for new investors.”

    The source said the lenders also felt that there was no need dissipating needless time and energy on the option of hostile takeover considering that the law is sacrosanct on that. “They realised the licence is not transferrable. So, they alternatively opted to pursue Mubadala for a recovery of the outstanding sum of money from the loan. The banks are said to be convinced of this option considering what they perceived to have been a trend with Mubadala. In each of the country where Mubadala had exited, it left behind burdens of unpaid loans,” the source added.

    Another source close to one of the lenders who corroborated the development, said: “The banks rose from their weekend meeting with a strong resolve that Mubadala may have tried this trick with the wrong customers this time around. Yes, I can confirm they will press charges.

    A leading Investment Analyst who works as External Consultant to the Central Bank of Nigeria (CBN), speaking on condition of anonymity, has advocated a stronger involvement of the Federal Government at the diplomatic, economic and trade relations levels as options to save Etisalat Nigeria.

    According to him, government needs to reach out to the Abu Dhabi government to rein in the Directors of Mubadala and compel them to respect a contractual loan obligation they entered into in Nigeria with the consortium of banks. At the economic level, the government must provide all necessary support under its “Ease of Doing Business” policy to new investors the Emerging Markets Telecommunications Services’ team led by Hakeem Belo-Osagie may be reaching out to. Key members of the nation’s Economic Management team such as the Minister of Industry, Trade and Investment, Minister of Finance and the Central Bank Governor can be directed to join the NCC to provide all necessary concessions to enable the new investors make their decision and settle in quickly,” he counseled.

    “The second leg of the proposed economic intervention is for the government to direct the Sovereign Wealth Fund to invest in Etisalat considering its continued viability as a business. Telecom is a critical national infrastructure that represents the backbone of business, economic development and even national security. The intervention of the Sovereign Wealth Fund will not only preserve the jobs of thousands of Nigerians directly employed by Etisalat Nigeria but that of scores of other Nigerians indirectly employed in the entire value chain of the Etisalat business,” he said.