The Nation Newspaper

Tag: Shareholders

  • Shareholders approve N100b new capital raising for Access Bank

    Shareholders approve N100b new capital raising for Access Bank

    Shareholders of Access Bank Plc yesterday authorised the board of the bank to raise up to N100 billion in new capital as part of plan to optimise the balance sheet and capital structure of the bank.

    At the 27th annual general meeting in Lagos on Wednesday, shareholders authorised the bank to raise additional debt capital of up to N100 billion through the issuance of non-convertible loans, notes, bonds and any other instruments either as a stand-alone issue or by establishing a debt issuance programme.

    The resolution empowered the board of directors to undertake the new debt issue by way of a public offering, private placement, book building process, reverse call enquirer or any other method or combination of methods, in such tranches, series or proportions and at such dates, coupon or interest rates within such maturity periods and upon such terms and conditions as may be determined by the board of directors subject to obtaining the requisite approvals of the relevant regulatory authorities.

    The board of the bank explained that the new capital issue was in line with the strategic growth objectives and prudent risk management of the bank with the overall goal of enhancing the bank’s funding, capital base and profitability through an efficient capital structure.

    “This need is underscored by the growing scale of regulatory headwinds and economic realities which have further put demands on capital. This is further strengthened by the fact that from 1 July 2016, the Capital Adequacy Ratio for Systemically Important Banks (SIBs) is being increased from 15 per cent to 16 per cent,” the board stated.

    Shareholders also approved payment of a final dividend of N8.68 billion in addition to earlier interim dividend of N7.23 billion, bringing total dividend for the 2015 business year to N15.9 billion. The breakdown of the dividend recommendation indicates that shareholders will receive a final dividend per share of 30 kobo, in addition to interim dividend per share of 25 kobo, bringing total dividend per share to 55 kobo.

    Shareholders who spoke at the meeting generally commended the resilience of the bank in the face of macro and industry headwinds.

    National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu noted that the bank has remained resilient in the face of harsh operating environment.

    He said the performance of the bank was a pointer that the future is promising, urging the bank to improve on the dividend payouts in the coming years as it has all it takes to surpass other lenders in the country.

    Chairman, Access Bank Plc, Mrs. Mosun Belo-Olusoga assured on the prospects of the bank notwithstanding the changes in the macroeconomic environment.

    “The bank is in a position of strength for the future-we have a solid franchise that allows us to continue to succeed during difficult economic times. We have a conservative risk profile that has placed us in a position of advantage amidst the economic storm and we are investing for long-term growth, which will allow us to capitalise on opportunities as we eventually emerge from the downturn,” Belo-Olusoga said.

    Chief executive officer, Access Bank Plc, Mr. Herbert Wigwe said the bank remained committed to delivering value to its shareholders as it continues to maintain and sharpen focus on the execution of its strategy to create a large diversified bank with a strong retail base.

    “We are well-positioned to leverage promising market opportunities in target sectors and to enhance our digital banking capabilities, with the ultimate goal of delivering superior service to customers and sustainable returns to investors. Access bank will cautiously maximize its strong capital position to realise the full value of its network, with the aim of attaining strategic objectives,” Wigwe said.

    Key extracts of the audited report and accounts of Access Bank for the year ended December 31, 2015 showed considerable growth across the key indices. Gross earnings rose by 37.5 per cent from N245.38 billion in 2014 to close at N337.40 billion in 2015. Operating income rose by 39 per cent to N234.8 billion in 2015 as against N168.4 billion in 2014. Profit before tax grew by 44 per cent from N52.02 billion to N75.04 billion. Profit after tax improved by 53.3 per cent to N65.9 billion in 2015 as against N42.98 billion in 2014. Earnings per share thus improved from N1.85 in 2014 to N2.62 in 2015. Return on average equity (ROAE) improved to 20.4 per cent in 2015 as against 16.5 per cent in 2014.

  • Shareholders block Unilever’s bid for overriding stake in Unilever Nigeria

    Shareholders block Unilever’s bid for overriding stake in Unilever Nigeria

    Nigerian shareholders largely shunned a N43 billion share-acquisition bid by Unilever Overseas Holdings, United Kingdom aimed at acquiring a quarter of Unilever Nigeria’s shares to increase the multinational’s majority equity stake in the Nigerian subsidiary to 75 per cent.

    The latest audit of Unilever Nigeria, scheduled to be presented to the company’s general meeting on May 12, indicated that Unilever UK’s total shareholdings in Unilever Nigeria only increased by 8.49 per cent from 50.04 per cent to 58.53 per cent after the conclusion of acquisition bid. Besides, Unilever UK had resorted to mopping up the shares of Unilever Nigeria through the Nigerian Stock Exchange (NSE).

    Unilever UK now holds 58.53 per cent, 16.47 per cent short of the 75 per cent, through two holding companies-Unilever Overseas Holdings BV Holland, which holds 50.04 per cent and Unilever Overseas Holdings BV, which holds 8.49 per cent. Nigerian investors retain 41.47 per cent shareholdings in Unilever Nigeria.

    “The total shareholding of Unilever Overseas Holdings B.V. increased to 321,395,410 following the Tender Offer to other Shareholders of Unilever Nigeria Plc and open market purchases made during closed periods in 2015,” according to the audit.

    The Nation’s check indicated that Unilever UK holds a total of 2.214 billion ordinary shares of 50 kobo each out of Unilever Nigeria’s total issued shares of 3.78 billion ordinary shares of 50 kobo each. A breakdown showed that Unilever Overseas Holdings BV Holland holds 1.89 billion shares.

    Under the extant laws, a 75 per cent equity stake would have given Unilever UK the overriding majority equity stake to undertake several strategic transactions including mergers, acquisitions, new capital issues and other major corporate changes with little or less resistance from Nigerian shareholders.

    A shareholders’ leader who spoke to The Nation said they mobilised against the acquisition bid because Nigerian shareholders felt the bid was not fair and in the best interest of Nigeria. The shareholders’ leader cited shareholders’ resistance to similar move by GlaxoSmithKline UK, which was forced to abandon bid to acquire overriding majority equity stakes in GlaxoSmithKline Consumer Nigeria by acquiring shares held by minority Nigerian shareholders.

    Unilever Overseas Holdings, the United kingdom-based foreign core investor in Unilever Nigeria, had in first half of 2015 sought to increase its majority equity stake in the Nigerian subsidiary from 50 per cent to 75 per cent, citing long-term strategic importance of Unilever Nigeria to its global business.

    In a transaction initially valued at about N43 billion or £144.5 million, Unilever Overseas Holdings sought to increase its equity stake in the Nigerian company from 50.04 per cent up to a maximum of 75 per cent by buying additional shares from minority shareholders. The tender offer sought to acquire about 942.42 million ordinary shares in Unilever Nigeria at a price of N45.50 per share in cash.

    In a statement signed by Richard Hazell, Director, Unilever Overseas Holdings B.V, Unilever had said it was making the additional share acquisition as part of long-term strategic plan by the conglomerate as it believes that Nigeria offers significant growth potential.

    “The Unilever Group has had a major presence in Nigeria for many years and continues to believe that the country offers significant growth potential. This makes Nigeria a strategic long term investment priority for Unilever Overseas. Globally, the Unilever Group is focused on investing in the foods, household and personal care categories and the long heritage and great brands of Unilever Nigeria in these categories in Nigeria make it attractive for Unilever Overseas to increase its holding in Unilever Nigeria, whilst maintaining its stock exchange listing,” Unilever stated in the statement enclosed in the tender offer.

  • Dangote Sugar Refinery’s shareholders get N6b dividend

    Dangote Sugar Refinery’s shareholders get N6b dividend

    Shareholders of Dangote Sugar Refinery (DSR) Plc yesterday approved the recommendation of the board of director to distribute a total of N6 billion as cash dividends for the 2015 business year.

    At the annual general meeting in Lagos, shareholders lauded the performance of the company in spite of the economic downturn noting that the dividend per share of 50 kobo underscored the commitment of the company to shareholders.

    Key extracts of the audited report and accounts of DSR for the year ended December 31, 2015 showed that total turnover rose from N94.86 billion in 2014 to N101.06 billion. Gross profit also improved from N18.63 billion to N20.73 billion. Operating Profit increased to N15.85 billion in 2015 as against N13.59 billion in 2014.

    Also, the company recorded a profit before tax of N16.55 billion in 2015, representing an increase of eight per cent on N15.27 billion recorded in 2014. After taxes, net profit however dropped marginally from N11.64 billion to N11.54 billion. Earnings per share followed the trend, dropping slightly from 97 kobo in 2014 to 96 kobo. Total assets rose to N102.62 billion in 2015 as against N92.80 billion in 2014.

    The highlights of the company’s operations in 2015 showed that season sugar production at Savannah was 6,610 tonnes, up from 6,333 tonnes in 2014. The full year refinery production at Apapa stood at 740,350 tonnes, down from 832,660 tonnes the previous year. Group sugar sales improved from 781,319 tonnes in 2014 to 782,120 in 2015. The company added 100 trucks to the fleet under its management.

    In his address, chairman, Dangote Sugar refinery (DSR) Plc, Alhaji Aliko Dangote, said the company remained committed  to delivering  superior returns to its shareholders as shown with the N6 billion dividend for the year ended December 31, 2015.

    He pointed out that the immediate past business year was a very challenging  year as the political transition and economic slowdown impacted consumer spending and the global oversupply of crude oil weakened the naira, leaving an average Nigerian consumer with less purchasing  power than in the past three to four years.

    He said directors of the company would continue to ensure prudent financial management in view of the company’s investment requirement for the backward integration project(BIP) and building of a sustainable financial future for the company.

    In his remarks, Acting Managing Director, Dangote Su) Plc, Abdullahi Sule said 2016 commenced on a good footing as the company continued to increase its market share while implementing various initiatives and projects towards the actualisation of its target within the next five years.

    “Achievement of the backward integration projects (BIP) targets remains our priority, and this will eliminate our reliance on foreign exchange as well as volatility of raw sugar prices, the highest single driver of our production cost,” Sule said.

    He expressed confidence that DSR can continue to  help Nigeria reach its near-term goal of sugar self-sufficiency by achieving its target of 1.5 million metric tonnes of refined sugar from locally grown sugar cane in the next 10 years.

  • Dangote Cement assures shareholders of better returns

    Dangote Cement assures shareholders of better returns

    Chairman, Dangote Cement Plc, Alhaji Aliko Dangote, has assured shareholders that the company would continue to deploy strategies to increase profitability in spite of the prevailing harsh operating climate. Dangote spoke at the company’s annual general meeting in Lagos yesterday.

    He said with the measures put in place, the foreign exchange volatility would not affect the operations of the company significantly, noting that other African plants of the group are operating maximally and yielding positive results to cushion the effect of the scarce foreign exchange in Nigeria.

    “We have good strategy in place; the volatility of the foreign exchange will not affect our operations. I am not an advocate of devaluation of our currency, even if that had happened; it would not have affected your company,” Dangote said to the applause of excited shareholders.

    He noted that diversification was key to the group’s strategy and that was why it has intensified its expansion.

    According to him, the way the company has gone about its expansion, it would appear it has over invested in capacity expansion in Nigeria given that it has 29 million metric tonnes per annum (mtpa) and another 12 million mtpa capacity plants under construction, but the fact remains that investments can never be enough in Nigeria.

    “The World Bank estimates that Africa needs to invest $337 billion a year on new infrastructure in power, roads, transport, and water and then spend a further $35 billion a year on operations and maintenance. This indicates the size of opportunity for a cement manufacturer operating in Africa,” Dangote said.

    Shareholders approved distribution of N136.3 billion as cash dividends for the year ended December 31, 2015. Breakdown of the dividend recommendation indicated that shareholders would receive a dividend per share of N8 for the 2015 business year, 33.3 per cent increase on N6 distributed for the 2014 business year. The dividend will become payable tomorrow.

    Key extracts of the audited report and accounts of Dangote Cement for the year ended December 31, 2015 showed that turnover rose by 25.56 per cent from N391.6 billion in 2014 to N491.72 billion in 2015. Gross profit increased by 16.63 per cent to N289.92 billion in 2015 as against N248.58 billion in 2014. Profit before tax inched up to N188.29 billion compared with N184.69 billion in the previous year. After taxes, net profit rose by 13.68 per cent from N159.50 billion in 2014 to N181.32 billion. Earnings per share thus increased by 15.2 per cent from N9.42 in 2014 to N10.86 in 2015.

    Dangote Cement grew its total assets to N1.11 trillion in 2015, 12.82 per cent above N984.72 billion recorded in 2014. Total liabilities however rose by 18.68 per cent from N392.84 billion to N466.22 billion. Shareholders’ funds also grew by 8.9 per cent from N591.9 billion to N644.7 billion.

  • Shareholders laud UBA’s 2015 performance

    Shareholders laud UBA’s 2015 performance

    •N22b dividend approved

    Shareholders of United Bank for Africa (UBA) Plc have praised the board and management of the bank for sustaining growth and returns to shareholders in 2015 in spite of the tough operating environment.

    At the Annual General Meeting (AGM) of the bank in Lagos, shareholders approved the bank’s final dividend of 40 kobo per share, bringing the total payout for the 2015 business year to 60 kobo per share or N21.77 billion. UBA had paid an interim dividend of 20 kobo in September 2015.

    National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, praised the bank for growing profit and increasing dividend payment at a time when many other banks recorded lower profit and had to cut dividends.

    He said noted that the dividend payment reinforces the resilience of the bank amidst challenging operating environment and it also shows the quality of the bank’s management.

    Addressing the shareholders, chairman, United Bank for Africa (UBA) Plc, Mr. Tony Elumelu said the bank’s strong performance in 2015 reflected efficiency gains, prudence and best practice in risk management.

    He pointed out that the bank grew gross earnings by 10 per cent to N315 billion in 2015 in spite of relatively weak liquidity in the Nigerian foreign exchange market, which reduced foreign currency related business and income lines.

    “Our bank offset the macroeconomic challenges with improved customer service and balance sheet efficiency,” Elumelu said.

    He added that the bank successfully managed its costs throughout the year, thus preserving earnings to deliver a profit before tax of N68.5 billion, which translates to 22 per cent growth over its performance in 2014.

    Elumelu warned that developments in financial technology were changing the game in the financial industry, lowering operating costs and broad customer reach and becoming major disruptors within the banking industry.

    He, however, assured that UBA is a part of the leading technology change agents,  and thus well positioned to benefit from the brave new world offered by advancements in technology.

    Also Group Managing Director, United Bank for Africa (UBA), Mr. Phillips Oduoza, explained that management identified and eliminated fats in the system and improved on contract negotiations.

    He added that the bank eliminated overlapping functions and structures and continued to leverage technology in its operations, particularly in servicing its over  eight million customers through low cost service channels, which ensured it delivered improved performance to shareholders.

    Shareholders were introduced to recently announced group managing director-designate; Kennedy Uzoka.

    Uzoka assured the shareholders that the bank is committed to sustainably delivering superior returns to shareholders in excess of their expectations.

    He noted that the bank’s African subsidiaries are growing stronger and the group has a target to increase Africa’s contribution to the group’s profit to over 25 per cent in 2016 from 24 per cent in 2015, without undermining the positive outlook on Nigeria, where he expects to see positive growth from imminent implementation of the 2016 budget.

    Uzoka said that UBA market share is increasing in most of its target markets, as it grows loans and deposits in double digits across most of its operations in Africa.

    Key extracts of the audited report and accounts of UBA for the year ended December 31, 2015 showed that gross earnings rose by 10 per cent while profit after tax grew by 25 per cent.

    UBA Group’s gross earnings closed 2015 at N314.83 billion as against N286.62 billion recorded in 2014. Profit before tax rose from N56.20 billion to N68.45 billion. Profit after tax also increased from N47.91 billion to N59.65 billion. Earnings per share thus improved from N1.53 in 2014 to N1.79 in 2015.

  • SEC, shareholders row over shares manipulations

    SEC, shareholders row over shares manipulations

    Shareholders yesterday disagreed with the Securities and  Exchange Commission (SEC) over the cause of the downward trend in the stock market with attendant negative consequences on the economy.

    The stakeholders expressed divergent views even as the House of Representatives Committee on Capital Markets and Institutions, headed by Hon. Tajudeen Yusuf began a two- day public hearing on two motions titled: Downward trend of the Nigerian Stock Exchange and urgent need to address the vexed issue of unclaimed dividends.

    The President of the Renaissance Shareholders Association, Ambassador Olufemi Timothy, who fired the first shot at the hearing, said the Nigerian Stock Exchange (NSE) has lost Integrity because of shares manipulation  and other illegalities.

    He wondered how the shares of dead companies kept rising in the Exchange while that of healthy and vibrant companies were static or degraded.

    On the post-2008 downward trend of the stock exchange till date, he said: “We investors ( retail, institutions) have discovered that the NSE has turned into something else, hence the continued downward trend of the market without being able to recover for eight years, since 2008.

    “Our stock market from our experience as retail investors for two decades now was that the NSE has been turned into gambling centre (Casino Game Market).

  • APR proposes N1.2b dividend for shareholders

    Africa Prudential Registrars Plc has set aside N1.2 billion to be paid to ordinary shareholders of the company if the proposed final dividend of 43 Kobo per share is ratified at the coming Annual General Meeting.

    Its audited results for 2015 released to the Nigerian Stock Exchange (NSE) last week, showed that this final dividend rounds up to 60Kobo total dividend for 2015 financial year, having paid an interim dividend of 17 Kobo on August 31 last year after releasing its half year financial results.

  • Shareholders approve Oando, OER buy-out offer

    Shareholders of Oando Energy Resources (OER) Inc- the Toronto Stock Exchange (TSX)-listed exploration and production subsidiary of Oando Plc, have approved the proposal by Oando Plc to buy out the outstanding minority shareholdings in the exploration and production subsidiary.

    OER announced at the weekend that at a special meeting on February 25, 2016 in Vancouver, British Columbia, a total of 550.46 million votes were cast by shareholders, representing 69.15 per cent of the total issued and outstanding common shares. A 100 per cent of the votes cast were voted in favour of the resolution.

    However, the plan of arrangement remains subject to the final approval of the Supreme Court of British Columbia and subject to satisfaction or waiver of various other conditions specified in OER’s management information circular dated January 19, 2016. The parties have agreed to extend the outside date to March 25, 2016.

    As part of the transaction, OER has notified the TSX and applied for the delisting of the common shares upon completion of the arrangement. In addition, in accordance with Section 720 of the TSX Company Manual, the company has applied to voluntarily delist the common share purchase warrants it issued from the facilities of the TSX upon completion of the arrangement. An exemption from the requirement for security holder approval of such delisting is available pursuant Section 604(f) of the TSX Company Manual because Oando Plc holds more than 90 per cent of the common shares.

    However, the completion of the transaction, including the delisting of the common shares and warrants from the facilities of the TSX, will be subject to, among other things, approval by the syndicate of lenders in OER’s $450 million senior secured facility.

    Oando had entered into a definitive agreement with OER to sell the outstanding minority shareholdings in the OER to another wholly-owned foreign-based subsidiary, Oando E&P Holdings Limited.

    Oando E&P Holdings Limited will also subsequently take over shares held by Oando Plc and other institutional shareholders in OER, making OER a wholly-owned subsidiary of the Oando E&P Holdings Limited, a private company incorporated under the laws of the Province of British Columbia as a wholly-owned subsidiary of Oando Plc.

    Earlier regulatory filing at the Nigerian Stock Exchange (NSE) indicated that Oando E & P Holdings Limited would acquire all the outstanding minority shares under a plan of arrangement for a cash consideration of $1.20 per share.

    Oando holds, either directly or indirectly, 746,107,838 of the common shares of OER, representing approximately 93.7 per cent of the issued and outstanding common shares. Pursuant to the plan of arrangement, Oando E & P Holdings Limited will acquire all of the common shares that are held either directly or indirectly by the institutional shareholders and Oando.

    In consideration for such transfer, Oando and the institutional shareholders shall receive such number of shares of Oando E & P Holdings Limited as reflects the number of their contributed common shares for the purposes of completing the transactions contemplated by the plan of arrangement. The referenced institutional shareholders are M1 Petroleum Ltd, West African Investment Ltd and Southern Star Shipping Company Inc.

    The consideration represents a 177.2 per cent premium to the 20-day volume weighted average price of OER’s common shares on the Toronto Stock Exchange for the period ending December 21, 2015, using the Bank of Canada US$ to CDN$ closing exchange rate of 1.3965 on December 21, 2015. The transaction provides total consideration to holders of minority shares of approximately US$13.7 million and implies an equity value for the company of approximately US$955.3 million.

  • NAHCO assures shareholders continuous of returns

    NAHCO assures shareholders continuous of returns

    The Chairman of Nigerian Aviation Handling Company (NAHCO), Alhaji Suleiman Yahyah, has assured stock market operators that it will  continue to  provide steady returns to shareholders in form of dividends and bonuses.

    Speaking at the Closing Gong Sounding ceremony on the floor of the Nigerian Stock Exchange (NSE) on Wednesday, Yahyah said since the company was privatised and listed on the exchange in 2006, it has remained consistent with dividend payment.

    “I want to assure shareholders that this year will not be different. We will continue to declare healthy dividend in line with our consistent dividend strategy,” he said.

    According to him, since its privatisation, the company has embarked on business diversification programme that cuts across industries and geography. He said  the company  has  developed strategic global alliances through its membership of aviance, the global alliance of 10 reputable airport service providers operating from 112 stations in 17 countries, and The International Air Cargo Association (TIACA), which exists to promote the air cargo industry and world trade.

    Yahyah noted that  from a single business company, NAHCO has grown into a diversified  group that is not only in cargo and passengers handling, but is also into agriculture,  free trade zone and energy.

    He said: “We are ready to go on the investment in the free trade zone. The licence has been secured, the partnership with International Development Ireland,had been signed, management is in place and   market is looking good. We are also investing in our agric zone development ,which is part of  free trade zone, a sub element of  using our platforms in Lagos, Abuja, and Port Harcourt. Already 10 per cent of our earnings  is coming from export. So we want to deepen it  in view of the difficulty now in the forex market. So  we will fast track that investment and hopefully,  that should begin  show in our  performance by the end of  2016. Besides, we are also are moving to other  African countries. We are licensed in Senegal and Cote d I’voire. Now is the time to make those investment decisions active.”

    He disclosed that NAHCO  invested over N10 billion in equipment, saying these equipment made the company to be about 150 per cent   self-sufficiency.

    He said the company has enough equipment and is ready  for the new terminals that are coming  Lagos,  Port  Harcourt, Kano and Abuja Terminals.

    “Our future remains to deepen our market presence, deepen our corporate governance culture and strengthen the board, which is stable and experienced and management to face the challenges in the economy. We also believe that our agric zone and free trade zone will provide continuous sustainability to the investors,” he said.

  • Portland Paints to raise N2b from shareholders

    Portland Paints and Products Nigeria (PPPN) Plc has launched a new capital issue process aimed at raising N1.98 billion new equity funds from existing shareholders.

    A regulatory filing at the NSE indicated that PPPN, a subsidiary of UAC of Nigeria (UACN) Plc, plans to issue 600 million ordinary shares of 50 kobo each to existing shareholders at N3.30 per share. The rights’ shares will be allotted on the basis of three new ordinary shares for every two ordinary shares held as at the close of business on February 9, 2016.

    Shareholders of the company had at the annual general meeting last year approved the rights issue as part of efforts to deleverage the company and enhance its production capacity.

    Chairman, Portland Paints and Products Nigeria (PPPN) Plc, Mr. Larry Ettah, said the net proceeds from the rights issue would be used to reduce existing loans from banks and also to improve plants and equipment of the company.

    According to him, as the company makes efforts to improve returns, there is need to address the high leverage position of the company in addition to implementation of other business expansion plans.

    “We want to improve the way we run this company. If plants and equipments are running well, the cost of sale will reduce and we will be able to pay dividend next year. We already borrowed about N700 million and we intend to raise money to reduce our burden,” Ettah said.

    He said that the company is being repositioned for improved performance noting that the company is currently realigning its portfolio and making strategic shifts where necessary while continuing to focus on innovation and seek opportunities to introduce new offerings into its portfolio of brands.

    Key extracts of the audited report and accounts for the year ended December 31, 2014 showed that profit after tax rose by 159 per cent from N57.3 million in 2013 to N148.6 million in 2014. Operational profit also grew from N174.3 million in 2013 to N304.5 million.