The Nation Newspaper

Tag: Shareholders

  • Shareholders to access N100b unclaimed dividends

    Shareholders can now reclaim their unclaimed dividends within two days of providing their validated bank account to the company registrar.

    Th value of unclaimed dividend is estimated to be in the region of N100 billion.

    In a major move to tackle the menace of unclaimed dividends headlong, Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), is reviewing new rules and guidelines to make it easier for shareholders to mandate their accounts for automated, electronic-dividend payment, while blocking loopholes being exploited to create unnecessary delay in the account-mandating process.

    Under the new rules, registrars “shall ensure that all mandated shareholder accounts are credited with all outstanding unclaimed dividends within two days”, while Bank Verification Number (BVN) shall be acceptable in replacement for banker’s confirmation of signature.

    Accordingly, where BVN is provided, banker’s confirmation shall not be required before shareholders’ accounts are mandated by the registrars, thus avoiding unnecessary delay in mandating shareholders’ accounts.

    Registrars are also expected to submit a quarterly report on all mandated shareholders’ accounts to SEC in order to enable the Commission monitor the level of compliance with the e-Dividend Mandate Management System (eDMMS).

    At the last count, there were more than 2.55 million mandated accounts under the eDMMS. However, there have been several complaints of registrars not remitting the backlog of unclaimed dividends and in many instances, shareholders have to launch a new separate recovery process to reclaim previous payments.

    The new rules and amendments, SEC said, are part of efforts to increase the rate of compliance by registrars, reduce the quantum of unclaimed dividends and avoid unnecessary delay in mandating shareholders’ accounts.

    According to the rules, any registrar that violates the provisions of the new rules shall be liable to a penalty of not less than N1 million and an additional sum of N20, 000 for every day the violation persists.

    SEC said it stipulates the penalty to serve as a deterrent to registrars who may possibly violate the rule.

    Also, as part of efforts to ensure that shareholders and their heirs receive the benefit of their investments at the stock market, SEC is reviewing rules and regulations for the transfer of shares of a deceased person to the beneficiaries or administrators.

    Under the new rules, registrar shall ensure that shares of a deceased are transmitted within three weeks of receiving the request from the administrators or executors. The executors or administrators shall however, provide letter of introduction from the administrators and executors, introducing themselves as the legal representatives of the estate. The letter should indicate the names, addresses, signatures and BVNs of the individual administrators and executors.

    Also, administrators or executors shall provide original death certificate from the National Population Commission (NPC) for sighting, original probate letter or letter of administration for sighting or the certified true copy (CTC) from a Notary Public, copy of newspaper advert placed by the Court or Gazette, any evidence of ownership of the investment by the deceased such as the statement of shareholding from the Central Securities Clearing System (CSCS), original share certificates, dividend stub or dividend warrants or bank statement showing receipt of dividend into the account of the deceased.

    Where the administrator or executor cannot provide the above requirements, the registrar may require confirmation through insurance, indemnity or interview.

    SEC is also limiting the fees chargeable for transmission of shares by registrars to one per cent of the total value and additional five per  cent Value Added Tax (VAT) for shares of N5million and below and 0.5 per cent of the value and five per cent VAT  on shares above N5million with a maximum chargeable amount of N200,000, excluding VAT. Also, fees chargeable for confirmation of probate or letter of administration shall not exceed N12,000.

    Sources in the know at the weekend said the new rules will be part of discussions at a crucial meeting of capital market regulators and operators this week.  The Capital Market Committee (CMC) meeting, the first in 2019, is scheduled for Thursday in Lagos.

    At the meeting, the CMC will consider reports from many of its technical committees and review the outlook for the Nigerian capital market in the light of emerging developments. During the meeting, issues bordering on implementation of the 10-year capital market master plan as well as others relating to the capital market and the economy would be discussed and the outcome made known to the media.

    The CMC, chaired by SEC Director General, consists of chief executives of all registered capital market operators, including stockbrokers, solicitors, custodians, fund managers, issuing houses, rating agencies, registrars, reporting accountants, trustees and consultants among others.  Other members include chief executives of the Chartered Institute of Stockbrokers (CIS); Nigerian Stock Exchange (NSE), Abuja Securities and Commodity Exchange (ASCE) and Central Securities Clearing System (CSCS).

    The CMC also include two members each from observer groups, which include Asset Management Corporation of Nigeria (AMCON), Central Bank of Nigeria (CBN), Corporate Affairs Commission (CAC), Debt Management Office (DMO),  Federal Ministry of Finance, Federal Mortgage Bank of Nigeria (FMBN), Federal Inland Revenue Service (FIRS), the Nigerian Deposit Insurance Corporation (NDIC), Investment and Securities Tribunal (IST), the Nigerian Investment Promotion Council (NIPC), National Insurance Commission (Naicom), National Pension Commission (Pencom) and FSS2020.

  • Shareholders approve Access Bank, Diamond Bank merger

    Shareholders of Access Bank Plc and Diamond Bank Plc yesterday approved the merger between the two commercial banks, in a transaction that will leapfrog post-merger Access Bank as Nigeria’s largest bank by total assets and one of Africa’s largest retail banks.

    At separate court-ordered meeting in Lagos, shareholders overwhelmingly approved the scheme of merger for the business combination and authorised the directors of the banks to take such actions as may be necessary to give effect to the scheme including listing of the scheme shares on the Nigerian Stock Exchange (NSE).

    Under the terms of the merger, Diamond Bank will transfer all its assets, liabilities and undertakings to Access Bank and the entire issued share capital of Diamond Bank shall be cancelled and Diamond Bank shall be dissolved without being wound up. In exchange, Diamond Bank’s shareholders shall receive a cash consideration of N1 per share and two ordinary shares of the enlarged Access Bank for every seven ordinary shares of Diamond Bank held as at the effective date.

    Directors and management of the banks said the merger will create significant values for all stakeholders, underlining the inherent synergies and value accretion in the business combination.

    The business combination is expected to form a leading Tier 1 Nigerian bank and the largest bank in Africa by number of customers, spanning three continents, 12 countries, 3,100 Automated Teller Machine (ATM), more than 33,000 Point of Sales (PoS) terminals, 27 million clients and more than 10 million mobile customers. Access Bank will be the post-merger entity while its Managing Director, Herbert Wigwe will continue to lead the post-merger management as chief executive.

    Diamond Bank and Access Bank share many of the same areas of focus, including women, youth, entrepreneurs and the financially excluded and will be able to further develop their positioning and market leadership in these growth sectors. Diamond Bank’s corporate customers will also be able to benefit directly from Access Bank’s corporate expertise in trade finance, cash management, treasury and corporate finance.

    Access Bank’s share price rose by 0.84 per cent to N6 yesterday at the Nigerian Stock Exchange (NSE).

    Group Managing Director, Access Bank Plc, Mr Herbert Wigwe, said the two banks share several common values and technologies that make the business combination a seamless one.

    According to him, the merger of the banks will create significant opportunities and benefits to customers, shareholders, staff and other stakeholders.

    He noted that the combination of Diamond Bank’s strong retail customer franchise and Access Bank’s proven risk and capital management expertise will create a post-merger bank with strong value creation potential.

    He pointed out that while the merger will lead to 19 per cent shareholding dilution, the business combination accelerates Access Bank’s plan to become a leading bank in Nigeria and gateway to Africa.

  • Nigerian Breweries to pay N19.4b net profit to shareholders

    The board of directors of Nigerian Breweries Plc has recommended payment of the entire net profit of N19.4 billion recorded in 2018 as cash dividend to shareholders for the business year, despite the decline in the company’s performance.

    Shareholders will receive final dividend of N14.6 billion in addition to N4.8 billion earlier paid by the company. A breakdown showed that shareholders will receive final dividend per share of N1.83 in addition to interim dividend of 60 kobo, bringing total dividend per share for the year to N2.43.

    The dividend payout for the 2018 business year represented 41.2 per cent decline on the payout for 2017, reflecting the decline in the performance of the company. Nigerian Breweries had paid out its entire net earnings of N33.01 billion as cash dividend in 2017, representing dividend per share of N4.13.

    Key extracts of the audited report and accounts of Nigerian Breweries for the year ended December 31, 2018 showed that turnover dropped by 5.8 per cent from N344.53 billion in 2017 to N324.339 billion in 2018. Operating profit declined by 35.3 per cent from N57.13 billion to N36.96 billion. Profit before tax also dropped from N46.57 billion to N29.36 billion.

    After taxes, net profit declined by 41.2 per cent from N33.01 billion to N19.4 billion. Earnings per share consequently dropped from N4.13 to N2.43 while net asset per share slipped by 6.8 per cent from N22.37 in 2017 to N20.84 in 2018.

    Company Secretary and Legal Director, Nigerian Breweries Plc, Uaboi Agbebaku, said the 2018 performance was adversely affected by the increased excise duty rates that came into effect during the year as well as other challenges in the operating environment.

    Nigerian Breweries had explained that its decision to pay out its entire net profit after tax as cash dividend to shareholders demonstrated its strong performance and confidence over its operations.

     

  • SEC advises shareholders to monitor investments

    • Regulator to tackle identity theft

    The Securities and Exchange Commission (SEC) has urged shareholders to monitor their investments in the capital market, assuring that the apex regulator will live up to its responsibilities on investor protection.

    Its Acting Director-General, Mary Uduk stated this in an interview in Abuja yesterday.

    She said the Commission has put in place a number of initiatives to protect investors as well as boost confidence including the e-dividend mandate management system, direct cash settlement, setting up a committee on identity management in the Nigerian Capital Market Regularisation of Multiple Subscription, Complaints Management Framework among others. She however enjoined investors to take ownership of their investments.

    She said: “Investors have to be able to monitor their investments, attend annual general meetings as well as read the annual reports sent out to them. On our part, we protect them through the National Investors Protection Fund (NIPF); risk based supervision that enables us to supervise the operators to ensure that they do not do what they are not supposed to do. And again, the Complaints Management Framework enables investors to know where to complain to and how long it takes for such complaints to be resolved.

    “We advise investors to get their financial advisers to advise them properly on where to invest. In this area, we advise retail investors to invest in Collective Investment Schemes and Mutual Funds because those are managed independently by professionals and they are diversified thereby reducing risks. We are committed to protecting investors in the work we do,” she said.

    Uduk said the Commission is working with other major stakeholders in setting up a committee that will look into to problems around identity management in the capital market.

    “So for instance, to boost the e-dividend mandate and Direct Cash Settlement initiatives, we are engaging NIBSS (Nigeria Inter-Bank Settlement System) on behalf of the capital market community to facilitate identity validation and account validation in an effort to enhance market processes,” she said.

    She also said the electronic distribution of annual accounts by public companies to shareholders continues to record tremendous success, as shareholders have largely accepted the new initiative and are willingly providing their email addresses.

     

  • Neimeth declares 10% bonus shares for shareholders

    The board of directors of Neimeth International Pharmaceuticals Plc has recommended distribution of bonus shares to shareholders as scrip dividend for the 2018 business year after the healthcare company saw a remarkable improvement in earnings.

    Neimeth will distribute about 172.65 million ordinary shares of 50 kobo each as bonus shares to shareholders on the basis of one bonus share for every 10 ordinary shares held as at the close of business on Thursday, January 17, 2019.

    The bonus shares will be credited to the investment accounts of the shareholders after approval of the bonus at the annual general meeting scheduled for February 6, 2019 in Lagos.

    Key extracts of the audited report and accounts of Neimeth for the year ended September 30, 2018 showed that sales rose by 48 per cent from N1.53 billion in 2017 to N2.27 billion in 2018. Cost of sales jumped by 83 per cent from N604.67 million to N1.11 billion. Gross profit thus increased from N929 million in 2017 to N1.16 billion in 2018.

    From a loss before tax of N404.92 million in 2017, Neimeth rebounded with a pre-tax profit of N202.48 million in 2018. After taxes, net loss of N411.48 million in 2017 was replaced with a net profit of N184.04 million in 2018. Earnings per share thus recovered from a loss of 24 kobo in 2017 to 11 kobo in 2018.

    Neimeth recently appointed the Group Executive for International Banking, FirstBank Nigeria Limited, Mrs. Bashirat Odunewu as an independent director in compliance with the statutory requirement for good corporate governance.

     

  • Shareholders approve N90b rights issue for Lafarge Africa

    Shareholders of Lafarge Africa Plc have approved plan by the company to raise about N90 billion in new equity funds as the cement company seeks to deleverage its balance sheet and restructure short-term loans.

    At an extraordinary general meeting in Lagos, shareholders approved resolutions authorising the company to create additional 10 billion ordinary shares of 50 kobo each to increase its authorised share capital to 20 billion ordinary shares.

    Shareholders also authorised the board of the company to raise capital of N90 billion by way of a rights issue of ordinary shares to its shareholders  and that the rights issue be executed at such price, time, for such period and on such other terms and conditions as the directors may deem fit.

    Also, the meeting granted the board the authority to apply any convertible loan, shareholder loan or any other loan facility due to any person, from the company, as may be agreed by the person and the company, towards payment for any shares or rights subscribed for in the rights issue.

    Shareholders also authorised the company to enter into a related party transaction to accept loan facility from LafargeHolcim, the foreign majority core investor which holds 76.32 per cent equity stake.

    Chairman, Lafarge Africa Plc, Mr Mobolaji Balogun, said the additional capital to be raised will further help to deleverage the company’s balance sheet and provide head room for the expansion of its business.

    He said the company foresees a stable pricing environment and favourable economic conditions in its Nigeria market while its South Africa operations are undergoing a turnaround plan.

    Chief Executive Officer, Lafarge Africa Plc, Mr. Michel Puchercos said the company’s refinancing plan is aimed at preparing for future development in Nigeria by improving the company’s leverage as well as strengthening its profitability.

  • Eko Hospital eyes dividend payment to shareholders

    The interim management of Eko hospital has said the success recorded from its transformation programme has put the hospital in a position where it can pay dividends to its shareholders.

    It said the six month duration given to it by the board which started in March, was largely focused on laying a foundation for the transformation and has been done with the automation of operational systems and processes which has started to show results.Chief Executive Officer (CEO), Eko hospital, Chukwuka Monye said the results achieved was because of their adherence to the brief of improving the operations of the organisation by optimising processes, enhancing the financial management systems and improving patient’s experience.

    Monye said this in Lagos at the end of their first phase term to review fundamental operational issues before embarking on the growth agenda so that the implementation of the related strategies are sustained and stakeholders enjoy the benefits.

    He said the automation of systems has led to increase visibility and transparency of financial activities by ensuring online real time daily reporting and proactive interventions when discrepancies occur in transacting with HMOs.

    “The impact of this new system can be seen in the average monthly revenue of the last six months which surpassed that of 2017 by 13 per cent”, he added.

    He said the implementation of a hospital and patient management system and a robust account management system was important to transition the organisation into an operationally efficient one.

    The Chief Medical Officer (CMO) Adegbite Ogunmokun said the hospital is a one stop shop for all situations and wonder why people spend much on medical tourism to services that can be gotten in the country.

    He said advertising what they have might be contrary to laws as the hospital,with over 400 staffs and 30 HMOs is well positioned to treat any case, adding that the automation done during the transformation process will improve patient experience.

     

  • Mutual Benefits assures shareholders

    The board of directors of Mutual Benefits Assurance Plc has assured shareholders that the net proceeds from the ongoing supplementary share issue would be used to deepen the capital base of the company and enhance its ability to create more wealth for shareholders.

    Mutual Benefits Assurance is offering 4.0 billion ordinary shares of 50 kobo each to existing shareholders at 50 kobo per share. The rights issue has been provisionally allotted on the basis of one new ordinary share of 50 kobo each for every two ordinary shares held as at the close of business on November 1, 2017.

    Application list for the rights issue opened on Monday August 6, 2018 and will close on Friday, September 14, 2018.

    Chairman, Mutual Benefits Assurance Plc, Dr. Akin Ogunbiyi, said the net proceeds of the rights issue would be used to finance the company’s growth plan including provision of additional working capital and expansion of information and communication technologies to support the company enlarged operations.

    He said the strategic goal of the company is to become the number one insurance company in Nigeria in terms of growth and profitability.

    He assured that new investments in technologies would help the company to eliminate delay in its processing and focus more on customer satisfaction.

    Addressing shareholders recently, Ogunbiyi reassured shareholders of the commitment of the board and management of the company to sustainable growth, in line with its five-year strategic plan.

    Mutual Benefits Assurance had in 2017 started implementation of a five-year strategic plan aimed at repositioning it for future opportunities and challenges.

    The five-year plan focused on four key areas of the group’s business including deepening market penetration and customer acquisition, customer service delivery excellence, transformation of it people and culture and operational effectiveness.

    Ogunbiyi noted that the 2017 business year showed the resilience of the company with 15.6 per cent growth in gross premium to N14.04 billion in 2017 from N12.14 billion in 2016, which placed the company among the top Nigerian insurance companies. Net benefits and claims grew by 53.9 per cent while the company recovered from a loss of N1.35 billion in 2016 to a profit of N1.02 billion in 2017.

    According to him, the significant growth in gross premium and better management of resources made 2017 a turnaround year for the company.

    He pointed out that the company has demonstrated its commitment to shareholders through the payment of N160 million dividend for the 2017 financial year, assuring that the latest dividend would mark the beginning of consistent dividend payments to shareholders.

  • Shareholders: don’t sell 9mobile over $43m debt

    Some shareholders of Etisalat (now 9Mobile) have cautioned against the sale of the firm in view of a pending case before the Federal High Court in Abuja.

    The Central Bank of Nigeria (CBN) and others are involved in a negotiation to sell the telecommunication firm.

    The shareholders – Afdin Ventures Limited and Dirbia Nigeria Limited – warned the CBN and others of the legal consequences of selling Etisalat, despite a subsisting court order halting further activities regarding the sale of the firm.

    Afdin and Dirbia, promoted by businessman Dahiru Barau Mangal, issued the warning yesterday in letters written by their lawyer, Mahmud Magaji (SAN) to the six parties involved in the transaction,who are also defendants in the pending case.

    The parties are:: the CBN, Etisalat International Nigeria Limited and Nigerian Communication Commission (NCC), Karlington Telecommunications Limited, Premium Telecommunications Holdings NV and  First Bank of Nigeria Plc.

    Afdin and Dirbia said their letters were informed by recent media report, credited to Boye Olusanya (CEO, 9mobile) to the effect that “9mobile’s board was pleased with the progress made thus far and expects the acquisition process to be concluded as soon as possible.”

    Shortly after Afdin and Dirbia filed the suit, Justice Binta Nyako, on April 17, gave an order, directing “the maintenance of status quo as at today.”

    In the suit, Afdin and Dirbia, who claimed to be major investors in the telecommunication firm, said they were left out in the firm’s decision-making and want a refund of their invested funds estimated at $43,330,950.

    Part of one of the letters by Magaji reads: “Recall that Hon. Justice Binta Nyako of the Federal High Court No. 4, Abuja made an interim order in suit: FHC/ABJ/CR/288/2018, Afdin Ventures Ltd & 1 other v. Karington Telecommunications Ltd & 6 others, restraining your office andother defendants from selling Etisalat Nigeria Ltd (now 9mobile) pending the outcome of the suit.

    “Upon service of the enrolled order on you, your office entered appearance and filed a statement of defence to the suit. Ogunmuyiwa Balogun, Esq made several appearance on behalf of your office in court.

    “Unfortunately, despite being aware of the subsisting court order, your office and the other defendants herein went ahead and concluded plans to sell off Etisalat Nigeria Limited (now 9mobile) in fragrant disregard to the subsisting order of court.

    “We have our clients’ further instructions to write and warn you of the consequences of disobeying lawful orders of court.

    “You are implored to put a hold on the transfer of ownership of 9mobile to any other investor pening the determination of the suit, failing which we shall be compelled to issue and serve you with Forms 48 and 49 with a view to commencing contempt proceedings against you in accordance with our clients’ instruction.”

  • Oando’s N8.5b profit excites shareholders

    Oando PLC’s shareholders passed a vote of confidence in its management at its 41st Annual General Meeting (AGM) in Lagos at the weekend.

    The shareholders were happy that the company recorded N8.5 billion half-year profit-after-tax.

    They applauded the management team for restoring market confidence by maintaining a track record of growth over the last 18 months.

    Speaking at the AGM, Adebayo Adetunji Adeleke, an Oando shareholder, commended management for transforming Oando from a downstream company to a dollar earning upstream focused business.

    He said: “The profit declared in H1 2018 has given us hope, I am optimistic that with hard work the company will continue in this stead.  I want to commend Oando on the impact of our Corporate Social Responsibility activities, we are touching lives, hundreds of thousands of lives and these same people are praying for the company therefore we will not go down.”

    The company’s profits swelled as oil prices increased. An analysis of Oando’s financials shows that the company’s turnover grew by 11% to N297.3 billion from N267 billion (H1 2017); gross profit increased by 53% to N51 billion compared to N33.4 billion (H1 2017); and profit-after-tax increased by 86% to N8.5 billion compared to N4.6 billion (H1 2017). In its upstream business, Oando recorded a net profit of N27.1 billion ($75.2 million) compared with N16.3 billion ($53.2 million) in the comparative period of H1 2017.

    According to the company’s statement, the increase in net income between the quarters was primarily due to higher revenues as a result of a general increase in the price of  oil and gas commodities.  Oando picked up on the industry recovery witnessed in 2017. Brent prices averaged $69.87 per barrel, resulting in a 38% increase in realized crude selling price compared to the same period in 2017. Oando’s performance was further buoyed by sale price increases of 19% for NGL and 13% for natural gas deliveries.

    Tunde Badmus, another shareholders, said: “Oando has survived all odds and is still strong. I am confident the journey of the company will lead to victory for all. I commend the management for being prompt to respond to issues concerning the business operations. We pledge to continue to support you.”

    All resolutions passed at the AGM were approved, including the re-appointment of Ernst and Young as auditors, the Directors were authorised to fix the auditors remuneration; appointment of Alhaji Bukar Goni Aji and Mr. Muntari Zubairu to the Board of Directors; election of audit committee members, and approval of the remuneration of non-Executive Directors.

    Sola Abodurin, a shareholder,  spoke on the efforts being made by management in reducing the company’s debt. He said: “I thank the Board of Directors for the efforts they’ve made to face challenges. About two years ago, if you looked at our debt profile, you’d wonder how the company would survive. But today, we’ve not only survived, we have drastically reduced our debt by over 50%. I appreciate the Board for the restructuring initiatives put in place when oil prices fell to keep the company going. If there are other initiatives you can embark on to keep the company growing from success to success, I urge you to take them on. Thank you for giving hope to the hopeless with the adoption of schools across Nigeria and the various CSR projects you’ve embarked on.”

    Oando PLC Group Chief Executive Wale Tinubu assured the shareholders of management’s commitment towards creating value for and protecting the interest of all shareholders: “We are pleased that your Company has shown resilience during the difficult times and is now on track for sustained growth. We will continue to evolve in the energy space to ensure that even when today’s energy products become less attractive, we have already made the investment for tomorrow. The interest of you, our esteemed shareholders, is paramount to us and we remain focused on growing profitability to ensure adequate returns accrue to you.