The Nation Newspaper

Tag: Investor

New Mauritius core investor takes over Nigerian German Chemicals

Mauritius fund-management company, Advanced Finance and Investment Group (AFIG Funds) has fully taken over as the new core investor and manager of Nigerian German Chemicals (NGC) Plc. The takeover led to major changes in the board and management of NGC, including the resignation of the chairman, executive vice chairman and a non-executive director.

AFIG Funds, through one of its funds-Atlantic Coast Regional Fund (ACRF), had in December 2014 reached agreement with shareholders of NGC to invest $14 million in the Nigerian company. The parties to the transaction then followed through the approval process with relevant regulatory authorities including the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE).

A source in the know said the takeover of the board and management was sequel to receipt of all necessary approvals from the Nigerian regulatory authorities. In a terse regulatory filing, NGC said its chairman, Mr. Babatunde Savage; executive vice chairman, Mr. Adeboye Shonekan and a non-executive director, Mr Olusegun Oshinowo resigned their appointments on September 4, 2015.

The new core investor promptly immediately appointed Mr. Stephane le Bouder, a director of AFIG Funds, as the acting chief executive officer and Mr. Samson Osewa, a director of NGC, as acting chairman of the company. Both appointments took effect on September 4, 2015.

Based in Mauritius, AFIG Funds is an investment fund management company with $ 122 million under management. It is one of the premier fund managers dedicated to private equity investment in Africa. AFIG Funds has offices in Dakar, Washington DC and Johannesburg. Atlantic Coast Regional Fund LLC (ACRF), the maiden fund of AFIG Funds, is a regional fund focused on 29 countries in West and Central Africa. ACRF considers investments in all sectors, and targets strong growth companies, preferably with a regional scope, in its target region.

AFIG Funds’ investment would provide NGC with the means to embark on its next phase of development, which includes the completion of new and more modern production facilities with expanded production capacity.

Besides, AFIG Funds would also enable the company to add an intravenous fluids plant, further cementing its position as a local leader in the manufacture of critical healthcare products. The investment will also support the company’s continued expansion and diversification of its brand offerings under its own name, and under license from global pharmaceutical leaders such as Johnson & Johnson.

Shonekan had hailed the investment from AFIG Funds as the much-needed catalyst to accelerate the growth of the company.

“The partnership with AFIG Funds represents a unique opportunity for NGC. AFIG Funds brings not only capital to accelerate the company’s growth and expansion, but also support to management and international experience that is already helping to strengthen the company’s ability to seize new market opportunities. NGC has a long and proud history as a leader in Africa’s largest market, and we look forward to building on this legacy to help strengthen the Nigerian healthcare sector, as well as facilitate access to world-class medicines for the people of Nigeria,” Shonekan said.

Chief executive officer, AFIG Funds, Mr. Papa Ndiaye, said the investment in NGC was as a result of a painstaking selection process over a six year period and involving several companies across the regions.

“We are pleased to invest in NGC. Over the past six years, we have evaluated a number of pharmaceutical companies in West, Central and East Africa, and found NGC to present one of the best investment opportunities in the sector, in terms of local leadership and strong brands,” Ndiaye said.

He described NGC as a resilient company that is poised to capture the tremendous market opportunities in Nigeria.

NGC produces and distributes its own brands of medicines, as well as several brands under license from major international pharmaceutical companies. It produces liquid and tablet medicines and also has a beverage production facility, subdivided into water and soft drinks. In the company’s 50 years in the market, it has built a portfolio of brands, including household brands such as Abidec, Daga, Gluformin and Valgin. Other products included Sparwasser, a brand of bottled, and Vimto and Sunkist, flavored and carbonated drinks which it produces under license for the Nigerian market.

The new chief executive, Mr. le Bouder holds both French and American citizenships and had prrior to joining AFIG Funds, served as Deputy Assistant Secretary for International Affairs at the US Treasury Department Office of Legislative Affairs in Washington DC. As a political appointee, he had worked with senior Treasury and White House officials to advance the Obama Administration’s international financial and development agenda in Congress.

He had earlier worked for the US Congress as Staff Director for the House Financial Services Subcommittee on International Monetary Policy and Trade. As senior committee staff, under the leadership of Chairman Barney Frank (Massachusetts), Stephane helped draft the landmark Dodd-Frank Wall Street Reform Act. Under the leadership of Subcommittee Chairman Gregory Meeks (New York), he was responsible for congressional oversight of US engagement with multilateral institutions.

Prior to working for the US Government, he worked for MyC4, a Danish technology startup building an online peer-to-peer microfinance lending platform dedicated to Africa. Mr. le Bouder also worked for Chatham Financial, in Pennsylvania, advising regional and community banks across the US on identifying, modeling and trading interest rate risks. He started his career at the Corporate Executive Board in Washington DC, advising Fortune 500 clients on Treasury function best practices. He holds a BA and MA in Economics from McGill University, and an MBA from Harvard Business School.

Osewa, a pharmacist and member of the Pharmaceutical Society of Nigeria, had served as Director of Pharma Production and Director of NGC. He joined NGC in 1982. He is a former president of National Association of Industrial Pharmacists.

September 16, 2015
Bankers’ conference to boost investor’ confidence

The Chartered Institute of Bankers of Nigeria (CIBN) has said that its ninth Annual Banking and Finance Conference that will take place in Abuja between September 8 and 9 will boost investors’ confidence in the economy.

In a statement, the institute said top bankers and other professionals will be at the event to set a realistic and value driven agenda for the economy.

The theme of this year’s conference is “The Financial Services Industry Agenda for a New Nigeria” with sub-themes to address specific critical issues in the economy such as “The imperative for National Rebirth for Economic Development: The Role of Nigerian Financial Services Sector”; “The Financial Services Sector and Security Challenges in Nigeria”’; “Financing Infrastructural Development in the New era”; and “The Financial Services Sector and the Challenge of Corruption in Nigeria”.

Top on the list of high profile and seasoned experts drawn from the key sectors, who will examine issues at the conference include President-elect of the African Development Bank and former Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina; Inspector General of Police,Mr. Solomon Arase; Chief Executive Officer Geometric Power/former Minister of Power, Prof. Barth Nnaji, among others.

The programme is designed to provide a platform for policy makers, key regulators and operators in the financial services industry to share experience and exchange ideas on relevant contemporary issues affecting the sector.

President Muhammadu Buhari will be the distinguished guest of honour, while the CBN Governor, Mr. Godwin Emefiele will deliver the keynote address and the President/Chairman of Council, CIBN, Otunba (Mrs.) ’Debola Osibogun, will be the chief host.

August 17, 2015
Investor acquires major stake in Multiverse

A new investor might have purchased a major stake in Multiverse Plc as almost five per cent equity stake of the quarry and natural minerals company was swapped in premeditated deals.

A total of 210 million ordinary shares of 50 kobo each of Multiverse worth N105 million were swapped in five deals on Friday. The transactions, traded at 50 kobo, the company’s nominal value, represented about 4.93 per cent of the company’s total outstanding shares of 4.26 billion ordinary shares of 50 kobo each.

A market source said the transactions were done through cross deals, referencing that the buyer and seller had previously agreed on the transfer and merely formalised the transaction at the Nigerian Stock Exchange (NSE).

The Multiverse’s transactions were the largest deals at the stock market during the trading session, accounting for 44.2 per cent of the total turnover at the market.

Multiverse was a subject of a similar major cross deal in May 2014 as investors swapped about 2.5 per cent equity stake of the company. The cross deal then for 105 million ordinary shares of 50 kobo each valued at N52.5 million was also the largest deal, by volume, during the trading session.

Multiverse, one of the companies that had stagnated at their nominal value in recent years, had been involved in many strategic partnerships in over the past 24 months. A leading Chinese Lead and Zinc mining company, Anhui Huishang Metal Corporation Limited, had in 2014 committed to investing 0 $111 million, in a joint venture business with Multiverse Plc.

Multiverse and Anhui Huishang Metal Corporation (AHMCL) created a Special Purpose Vehicle (SPV) to explore, develop and mine the huge deposit of Lead and Zinc ores at Multiverse’s Exploration License EL 16879 in Abuni, Awe Local Government of Nasarawa State. Both companies also signed a Joint Venture Agreement with AMHCL becoming the technical partner to Multiverse.

AHMCL committed to spending about $111 million in terms of equipment, exploration and mine technology over a period of four years, starting from this year.

They had contracted the Geological Institute of China to conduct a resource study to determine the reserve estimate of lead and zinc at the mines.

Multiverse had earlier entered into a joint quarry production agreement with Unicontinental Engineering Company Limited, an international Chinese quarry company. The long-term joint production agreement involved granite stones in Multiverse’s entire quarry sites. The strategic arrangement covered technical, financial, equipment and production assistance.

July 15, 2015
Foreign investor divests from Julius Berger Nigeria

Bilfinger SE, the majority core investor in Julius Berger Nigeria Plc, would sell its entire equity stake in the Nigerian company this month, it was learnt yesterday.

A regulatory filing obtained yesterday by The Nation indicated that Bilfinger SE, which holds 33.4 per cent in Julius Berger Nigeria, has decided to sell its equity stake and exit the company.

Bilfinger SE has already informed the Nigerian directors of Julius Berger Nigeria of the decision to dispose the equity stake on or before the end of this month.

The equity sale, according to the emerging details, will be offered to long-term Nigerian investors and will lead to the exit of the representative of Bilfinger SE from the board of Julius Berger Nigeria.

The equity sale might not be unconnected with Bilfinger’s strategic realignment from a construction company to an engineering and services group in the last decade which saw Bilfinger SE divesting totally from its construction activities.

Julius Berger Nigeria, in a confirmation, the board and management of Julius Berger Nigeria yesterday said they strongly believed that the exit of Bilfinger SE will not impact negatively on the company.

According to the company, ongoing strategic business directions being undertaken by the board and management would sustain and increase Julius Berger Nigeria’s efficiency and responsiveness as well as set basis for a future of long lasting success.

In 2011, Bilfinger, which then held 49.87 per cent equity stake in Julius Berger Nigeria, had sold down its equity stake. Julius Berger Nigeria then had 1.2 billion ordinary shares of 50 kobo each with market capitalisation of N56.59 billion out of which Bilfinger Berger held 598.4 million ordinary shares of 50 kobo each. Other substantial shareholders in Julius Berger Nigeria included the Lagos State and Benue State, which hold 6.99 per cent and 5.27 per cent respectively through their investment companies.

In order to strengthen its corporate independence, Julius Berger Nigeria had enhanced its on shore and off shore technical and logistic capacities by the establishment of a newly incorporated subsidiary, Prime Technology Design and Engineering Nigeria Limited for the provisions of design and engineering support services to the company.

The company also acquired a controlling majority share of the technical and logistic business and operations of Bilfinger Berger Nigeria GmbH, Wiesbaden, Germany, which assures Julius Berger Nigeria Plc of total control of all required services such as planning, procurement, recruitment and capacity building.

The share price of Julius Berger Nigeria remained unchanged at N52.39 per share.

June 19, 2015
Foreign core investor sells Nigeria’s Beta Glass

Frigoglass S.A.I.C, the Athens, Greece-based foreign core investor in Nigeria’s Beta Glass Plc has entered into an agreement to sell the Nigerian company and related business in Dubai, United Arab Emirates (UAE) to a new investor.

Frigoglass S.A.I.C is the parent company of Frigoglass Nigeria Limited, which holds the majority shareholding in Beta Glass Plc. Beta Glass is the leading supplier of glass packaging in Nigeria and other West African markets and its customers included blue chips such as Nigerian Bottling Company (NBC) and Seven-Up Bottling Company Plc.

A regulatory filing at the weekend indicated that Frigoglass has agreed to sell its glass operations to GZI Mauritius Limited, the holding company for GZ Industries Limited. GZ Industries has manufacturing operations in Nigeria and it is reputed as the largest beverage can manufacturer in West Africa. The acquisition of Beta Glass is a major expansionary drive for GZ, which had earlier started expanding its operations into Kenya. Major shareholders of GZI included Standard Chartered Private Equity.

According to the transaction details, Frigoglass would receive a net cash consideration of $225 million for the sale of the glass operations. The enterprise value was put at $403 million. Frigoglass will receive $200 million in cash immediately after the completion of the transaction and will subsequently receive $25 million in two tranches over the following two years.

The glass operations being sold included Frigoglass’ glass container operations in Nigeria and Dubai as well as the complementary plastic crates and metal crown businesses in Nigeria. Frigoglass has also reached agreement to acquire the minority interest in its Frigoglass Jebel Ali business in Dubai, which will also be part of the transaction.

As part of the deal, the glass operations management team in Nigeria and Dubai will also be transferred with the business. The business has 1,588 employees in Nigeria and Dubai.

The transaction is expected to be completed in the second half of this year. Frigoglass is expected to use the gross proceeds from the transaction largely to reduce its debt. Greece had suffered enormous economic meltdown and still wriggling in the aftermath of the 2009 global economic recession.

Chief executive officer, GZI Mauritius Limited, Motti Goldmintz, said the acquisition represents an important step in the long-term strategic ambition.

According to him, together with the company’s strong aluminium can business, the acquisition of Frigoglass glass, plastic crates and bottle crowns businesses, allow it to provide its beverage customers with a complete range of packaging solutions.

“We are excited about this landmark transaction, enabling us to capitalize on the strong long-term container glass opportunities, a critical building block for establishing a leading pan-African packaging materials platform,” Goldmintz said.

May 25, 2015
‘Lack of investor confidence affecting economy’

Dele Sotubo is the CEO of Stanbic IBTC Stockbrokers, Nigeria’s largest stockbroking firm in value and volume of transactions handled at the Nigerian Stock Exchange. In this interview with Bukola Aroloye, Sotubo speaks on the capital market, the company’s efforts in attracting interest in the market through stakeholder engagements, provision of quality investment advisory services as well as value added services, among other issues. Excerpts:

The exchange traded fund is a relatively new product in Nigeria, barely three years old, with only three listings including the Stanbic IBTC ETF 30.Do you think the market is sufficiently mature to appreciate this product?

The market is growing gradually and the exchange traded fund (ETF) will help deepen our market as well as diversify investors’ portfolio and risk. ETF represents baskets of stocks and a simplified method of investment whereby investors have a stake in many companies tracked by the ETF. More awareness towards its benefit will give room for growth. The market will definitely support this product.

There have been calls for multinational oil and gas companies and telecoms giants to list on the Nigerian Stock Exchange in order to further boost the capital market’s contribution to the GDP. What efforts are market operators like yourself making to encourage telecoms and multinational oil and gas companies to list on the Nigerian Stock Exchange?

The listing of these companies will help deepen the capital market. The regulators and operators are currently in discussions with the government on the best way to ensure that these companies list on The Exchange to help deepen the market.

Beyond that, we will continue to play an active role in listing such companies on the NSE. The listing of SEPLAT, an oil and gas company, on the NSE, is a clear example of our contribution as financial services group to deepening the NSE.

Since the 2008 market recession, investor confidence has been undermined. Reports suggest that over N793 billion was pulled out of the market by foreign investors in 2014. What needs to be in place to build the interest of local retail investors?

Restoring confidence in the market after the global melt down will be a gradual process as activities in the equities market is cyclical. Foreign investment withdrawal from the market in 2014 was largely as a result of Macros fall in oil prices and currency devaluation and exchange rate instability.

Improved macro-economic situation will galvanise investors’ interest and boost retail investors’ confidence in the market.

The increase in the number of more sophisticated domestic investors such as pension and asset management and insurance companies should drive participation in the medium to longer-term. We believe that the increase in retail investment products such as ETFs will also encourage retail investors participation.

Your bank won the NSE CEO award as the best dealing member firm, both in volume and value terms, in the capital market in 2014. What do you think inspired this award?

The award reinforces Stanbic IBTC Stockbrokers Limited as the largest stockbroking firm in Nigeria in both volume and value of total transactions executed in 2014. Market data for the year under review showed that Stanbic IBTC Stockbrokers Limited achieved a turnover in excess of 24billion units of shares, which represented 11.42 per cent valued at over N472 billion or 17.55 per cent to lead both the volume and value tables. Stanbic IBTC Stockbrokers was also the largest stockbroking house in Nigeria in 2013.

We were able to provide flows and market intelligence to our clients, which helped us generate trades, coupled with our participation in major primary market transactions.

We uphold integrity, standard operating processes and professionalism in our dealings. These continuously drive client patronage and great ethical standards.

We also leveraged on the expertise of our research team in providing value added insights for our numerous clients.

Lack of adherence to corporate governance remains hotly debated issue in the market. How compliant has your staff at Stanbic IBTC Stockbrokers been thus far?

Stanbic IBTC Stockbrokers Limited is known for integrity and professionalism, which comes from strong corporate governance. We have a robust compliance and monitoring team that ensures all rules and regulations are adhered to.

We will continue to uphold standard operating procedures, actively participate in the market without compromising our values and have every staff understand the company’s position at all times. We have zero tolerance for non-adherence to rules and regulations by staff members.

Personal account trading rule and code of conduct are in place, which guide the activities of staff.

The current reforms in the economy, particularly in power and agriculture, have helped to position Nigeria as an investment haven. Are investors showing strong appetite for opportunities in the aforementioned sectors?

With the recent GDP rebasing and the reforms around the power sector, we see strong appetite from investors, perhaps not on the stock market now. However, investors have shown increased interest in partnering with Nigerians on power projects and to a large extent agricultural transformation.

The challenging macro-economic environment is likely to slow down the pace of investment on that front as many players wait on the sidelines until the elections are well out of the way and the uncertainty around the fiscal operations of the government has been eased.

Technology has continued to redefine the operations of the capital market. For instance, the Nigerian Stock Exchange has introduced the X-issuer and X-Gen, which enables remote and mobile trading, among other transformation initiatives. How far do you think technology can shape the stockbrokerage business in the coming years?

The interesting thing about technology is that it fosters efficiency and productivity. It also drives transparency in the capital market. This can also be a mode through which retail investors can be attracted into the market.

Many Nigerians using mobile devices can now have access to put their trades through the market. With the introduction of Direct Market Access (DMA) and other similar initiatives, we expect that this will help to improve participation of investors in the capital market.

There seems to be a general disposition by pension fund administrators to federal government securities, about 40 per cent of PFA’s investments are skewed in that direction, followed by money market instruments. Investment in the capital market is considerably less. Which factors, in your opinion, other than regulation, determine these investment decisions?

Apart from the perceived low risk appetite of PFAs, which is understandable when we consider the adverse effects of the 2008 stock market crash on portfolio investors, we also believe that the limited number of high quality liquid stocks reduces their options.

Lack of depth in the Nigerian market makes the available options limited. The preference for capital preservation and guaranteed money market yields also contribute to the low risk appetite for equities.

Part of the regulation also requires pension funds to report returns on an annual basis, which discourages them from taking the long term view on investments.

We expect the listing of more quality companies as reforms in sectors such as the power, oil and gas, telecommunication and agriculture increase demand for capital.

What can investors expect from the capital market in 2015?

We expect continuous volatility in the equities market as macro concerns linked to the falling oil price and currency drive investor sentiment. The passive position of domestic investor has not helped the situation.

Despite the bearish outlook, we expect trading opportunities to continue to emerge for short-term investors while longer-term investors take advantage of the falling prices to increase exposure in quality stocks. We also expect the political risk as we approach the general elections to weigh on investor sentiments in the short-term.

However, we expect to continue to see investors interest in quality names.

March 8, 2015
Investor Protection Fund to compensate fraud victims

The Investor Protection Fund (IPF) of the Nigerian Stock Exchange (NSE) may compensate investors who are victims of fraudulent activities by unscrupulous stockbrokers.

The NSE on Monday said it has referred unresolved complaints against an expelled stockbroking firm to the IPF. The IPF rules allow the NSE to submit complaints made to it to the IPF while investors can also directly petition the IPF.

The Nation had on Monday reported exclusively that the Exchange had revoked the licenses and expelled two stockbroking firms- Gosord Securities Limited and Lakesworth Investment & Securities Limited over fraud.

While confirming the news report, the Exchange stated that the unresolved issues of settlement and restitution of investors who were victims of Gosord Securities has been referred to the IPF.

“The unresolved complaints against Gosord which were either brought to the Exchange by complainants or referred to The Exchange by the Securities and Exchange Commission have been referred to the Investor Protection Fund,” the Exchange stated.

The Nation had recently reported that IPF may soon begin payment of compensations to investors as the board of trustees of the scheme was finalizing operating groundwork to ensure smooth and continuous operations.

An impeccable source in the know of the activities of the IPF had told The Nation that the board of IPF was rounding off operating structures and framework for the scheme and would roll out its maiden compensation soon to announce the commencement of effective operations.

According to the source, after the approval of the IPF rules by the Securities and Exchange Commission (SEC), the board of trustees of IPF had gone back to the drawing board to ensure that it fashioned effective operating structure and framework that will sustain the scheme.

SEC had in January, this year approved the rules for the NSE’s IPF. The rules empower the board of IPF to make payment of compensation based on the claim submitted to the NSE and verified by the NSE or claim submitted to the board of IPF and verified by it, according to relevant sections of the ISA.

The IPF rules empower the board of IPF to have at anytime a written policy on the maximum compensation payable to an investor who has suffered a loss. The board can review this maximum compensation limit from time to time according to prevailing circumstances at the market.

Compensation would be paid subject to conclusive decision of the board on the basis of evidence that the investor has a claim against a dealing member, duly applied for settlement of its claim from the dealing member; the dealing member was unable or likely to be unable to satisfy the claim within a reasonable period and the investor then, duly applied for compensation from the Fund.

The board of IPF is also empowered to invest the funds with a view to grow the capital base of the IPF.

Part XIV of the Investment and Securities Act 2007 requires the Exchange to establish and maintain an investors protection fund to compensate investors with genuine claims of pecuniary loss against dealing member firms resulting from insolvency, bankruptcy or negligence of a dealing member firm of a securities exchange or capital trade points; and defalcation committed by a dealing member firm or any of its directors, officers, employees or representatives in relation to securities, money or any property entrusted to, or received by the dealing member firm in its course of business as a capital market operator.

The IPF rules indicates that an investor whose claim is within the maximum limit may be paid the full amount of the loss, after deduction of any amount or value of all monies or other benefits received or receivable by the investor from a source other than the Fund in reduction of the loss.

Besides, where the board is satisfied that in principle compensation is payable but considers that immediate payment in full would not be prudent having regard to other applications for compensation, or to any uncertainty as to the amount of the investor’s overall net claim, the draft empowers the board to pay an appropriate lesser sum in final settlement or to make a payment on account.

The board may also determine to make a payment on account or to pay a lesser sum where the investor has any prospect of recovery in respect of the claim from any third party or through an application for compensation to any other person or authority.

Compensation would be paid subject to conclusive decision of the board on the basis of evidence that the investor has a claim against a dealing member, duly applied for settlement of its claim from the dealing member; the dealing member was unable or likely to be unable to satisfy the claim within a reasonable period and the investor then, duly applied for compensation from the Fund.

According to the rules, an application for compensation may be rejected if it is not promptly made and in any event within the periods stipulated in the ISA or where the investor is responsible for, or has directly or indirectly profited from, events relating to the dealing member firm’s business which gave rise to the firm’s financial difficulties.

In the event of multiple claims, person who claims in a double capacity for himself and as the personal representative of a deceased investor will be treated in respect of the representative claim as if he were the deceased investor without prejudice to his own personal claim.

Also, where a person claims for himself and as a trustee, he will be treated in respect of the latter claim as a different person.

But where two or more persons in partnership have a joint beneficial claim, the claim will be treated as the claim of the partnership; otherwise each of them would be taken to have equal shares in the claim unless the contrary is proved to the satisfaction of the board.

According to the rules, where an agent has a claim for one or more principals, the principal or principals are to be treated as having the claim, to the exclusion of the agent.

According to the Exchange, the two expelled stockbroking firms, which were indicted for “unauthorized sale of clients’ shares”, failed to restitute the shareholders as directed by the disciplinary committee, which investigated the two firms.

Head, Legal and Regulation Division, Ms. Tinuade Awe explained that of all the penalties, expulsion and revocation of dealing license is usually viewed as a last resort where a dealing member fails to engage in conduct to rectify wrong doing or comply with the directives of the National Council of the Exchange.

“NSE is committed to restoring investor confidence in the Nigerian capital market. NSE will not hesitate to bring the full weight of its regulatory powers to bear on any dealing member that commits regulatory infractions and does not take steps to address them as appropriate even after being given sufficient time to do so,” Awe said.

NSE had received several complaints of unauthorized sale of clients’ shares against Gosord. The National Council among others found that Gosord breached Article 59(v) of the Rules and Regulations Governing Dealing Members of NSE by engaging in unauthorized sales of clients’ shares; Gosord failed to buy back clients’ shares and resolve all complaints against it, as directed by the Disciplinary Committee and that Gosord’s conduct was dishonorable, disgraceful, unprofessional and detrimental to the interests of NSE by destroying investors’ confidence in the market and eroding the goal of NSE to operate a fair, transparent and orderly market.

NSE also received one complaint of unauthorised sales of a client’s shares against Lakesworth. The National Council found that Lakesworth breached Article 59(v) of the Rules and Regulations Governing Dealing Members of The Exchange by engaging in unauthorized sales of a client’s shares while the firm also failed to buy back the client’s shares and resolve all complaints against it, as directed by the Disciplinary Committee.

“The general public should not deal with the expelled firms in relation to any transactions on NSE. Investors who hold stockbroking accounts in Gosord or Lakesworth should transfer their stocks to any active licensed stockbroking firm that is a Dealing Member of NSE,” the Exchange stated.

The Exchange urged investors or clients of either of the two expelled firms who may have deposited funds or securities such as share certificates with Gosord or Lakesworth to go and collect such assets directly from the expelled firm.

November 12, 2014
Investor seeks better incentives for printing industry

The chairman of Academy Press Plc, Chief Simeon Olusola Oguntimehin, has called for better incentives for the printing industry to remain afloat, noting that the company generated a revenue worth of N2.347billion in the year 2014 as against revenue in the previous year which was N2.286billion.

Oguntimehin made the declaration during the company’s 50th Annual General Meeting, held at the company’s premises in Lagos.

He lamented that, the greatest threat to the survival of the printing industry in Nigeria is the importation of print products from abroad for Nigerian consumption, stressing that it has continued to affect the skills and capacity in the country.

“The operating import tariff regime which made importation to be more economically viable for print product buyers to the detriment of local partners has been responsible for this.

“We therefore wish to commend government on its recent pronouncement on measures to encourage industrialization and job creation by amending tariffs that have constituted barriers to these objectives.

We can only hope that the steps being taken in this direction will be sustained to the benefit of the printing industry,” he said.

He maintained that the printing industry in the country has demonstrated that it can sustain the economy if the enabling condition is created.

October 19, 2014
New core investor bids for majority stake in MTI

Directors of Mass Telecommunication Innovation (MTI) Plc and a new core investor have opened exploratory talks on possible acquisition of the majority equity stake in the telecommunication infrastructure company.

On the heels of exclusive report yesterday by The Nation on the ongoing restructuring at MTI, a reliable market source in the know of the talks said the new core investor and directors of MTI have met to initiate discussions on the potential acquisition.

According to the source, the new core investor has indicated interest in acquiring majority equity stake of some 51 per cent in MTI.

The new core investor was said to have been impressed by the ongoing restructuring at the telecommunication company.

This initial expression of interest by a new core investor came on the heels of unsuccessful attempt by Tingo Mobile, a Nigerian mobile phone manufacturer, to launch acquisition bid for similar majority stake of 51 per cent in MTI.

Chief executive officer, Tingo Mobile, Dozy Mmobuozi, had said Tingo will acquire 51 per cent of MTI for about N4 billion to develop rural broadband in Nigeria.

According to him, MTI will be rebranded and remain listed on the NSE.

“We’re using the acquisition to reach out to the mass market,” Mmobuozi said. Lagos-based MTI’s “assets from base stations to license and goodwill and other things, will help penetrate rural Nigeria.”

However, a source close to the company said the Tingo’s bid was inconclusive and MTI is looking up to the new core investor for a potential deal.

The Nation had reported yesterday that MTI and four other companies had filed in for restructuring exercise at the Nigerian Stock Exchange (NSE), a process that might see significant changes in the operating, governance and shareholding structures.

September 4, 2014
Why investors are yet to pay 75% balance for PHCN

The preferred bidders who have made the initial 25 per cent payment for the purchase of the unbundled Power Holding Company of Nigeria (PHCN) are yet to pay the 75 per cent balance, which is obligatory before the handover that is scheduled for July ending, because of the pending labour issues, it was learnt yesterday.

According to an insider source at the Bureau of Public Enterprises (BPE), none of them (the investors) had paid the balance of 75 per cent.

The source also explained that even if the investors had paid the balance, the Federal Government would not hand over the entities to them until the labour issues are resolved.

“None of them has paid yet. They are waiting for the labour issues to be resolved. Even if they finish paying, they won’t be handed over until the workers’ issues are resolved,” said the reliable source.

The Nation also gathered from another source that the July ending handover date which the BPE has proposed is also dependent on the settlement of the PHCN workers issues.

It will be recalled that the Minister of Power, Prof. Chinedu Nebo, had on May 1 this year disclosed that the Federal Government would pay the workers’ severance package with PHCN privatization proceeds next month. Although it was not clear whether the proceeds, which he said would all be used to pay the staff, included the 75 per cent that the investors are yet to pay.

President Goodluck Jonathan approved N348 billion for the payment of severance package, although only N45 billion was appropriated for that purpose in this year’s budget.

But according to Nebo, government would raise funds to take care of the deficit from the PHCN privatization proceeds.

Although it is not clear whether the 25 percent the investors have already paid is enough for the deficit, the investors, it was learnt yesterday, are are also waiting for the government to sort out the labour issue before releasing the balance of 75 per cent to the appropriate financial authorities for the BPE.

Despite this waiting game from both sides, the Minister of State for Power, Hajiya Zainab Kuchi, on Thursday told journalists in Abuja that the fund required for the payment of the workers was available.

She added that the data computation was already ongoing.

Her words: ”We have taken over all the problems. We have addressed all the issues. The funding is there for the payment of labour. All they are doing is data computation and as soon as we are done with this, the handing over processes will take place.”

May 25, 2013