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Tag: stake

  • Investors stake N1.27tr on equities in 2017

    Turnover at the Nigerian equities market rose by 121 per cent to N1.27 trillion as quoted equities rebounded from a three-year consecutive downtrend with average return of 42.3 per cent.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, gave the overview of the market in 2017 and outlook for 2018 at his annual briefing yesterday in Lagos. Onyema used the occasion to brief the stockbroking community, analysts, media and other stakeholders, on the performance of the market in the preceding year and give prognosis for the market for 2018.

    He noted that equity market activity skyrocketed from 2016 levels, as market turnover increased by 121 per cent to N1.27 trillion from N0.58 trillion.

    According to him, the Nigerian equities market recovered from the macroeconomic overhang of the commodity downcycle to become the third best performing market in 2017 globally, with a 42 percent return in the NSE ASI index. However, The Nation’s check indicated that Nigeria was not the third best performing market, as other countries such as Venezuela, Ghana, Turkey, Argentina and Jamaica outperformed the Nigerian market.

    He attributed the impressive performance, in part, to Central Bank of Nigeria (CBN)’s monetary policies that resulted in increased liquidity in the foreign exchange market.

    “IPO activity in the year remained mute, however, there were several other positive indicators including the revival of supplementary listings and the return of new issuances. The value of supplementary listings increased by 27 per cent, bringing the total value of equity issues in 2017 to N408 billion,” Onyema said.

    In the debt market, Onyema noted that the NSE fixed income market recorded mixed performance as new bond issuances increased over the previous year, while bond yields gradually moderated from 2016 levels amidst easing inflation and greater foreign exchange stability.

    He pointed out that yields across various tenors declined between 0.4 per cent and 1.5 per cent, and market turnover declined by 24 per cent in 2017, as investors sought higher returns in alternative product classes. However, supplementary issuances by the Federal Government saw bond market capitalization increase by 34 per cent year-on-year.

    “The NSE’s Exchange Traded Funds (ETF) market witnessed increased activity across key metrics in 2017, recording a 272 per cent year-on-year growth in trade volumes, 33 per cent growth in turnover and a 40 per cent year-on-year increase in market capitalization to close the year at N6.69 billion,” Onyema said.

    He added that the NSE made steady progress on its strategic focus areas set out at the beginning of 2017 pointing out that demutualization remained a key strategic focus in the year under review as the Exchange, through targeted engagement efforts with its members, Securities and Exchange Commission (SEC), the National Assembly (NASS), NSE members including Association of Stockbroking Houses of Nigeria (ASHON), Corporate Affairs Commission (CAC) and other key stakeholders, achieved the broad-based support required to secure approval for demutualization from the Exchange’s members.

    He said the Exchange successfully progressed the Demutualization Bill through the first and second reading and public hearing stages of the law making process.

    “In 2017, we amplified our efforts to establish West Africa’s first derivatives market and achieved a number of key milestones during the year. These include the completion of draft rules; development of product specifications; and market-wide trainings on derivatives and Clearing Counterparty (CCP) transactions. We also worked to create and enhance legal and regulatory frameworks which support derivative instruments, and have made significant progress towards securing approvals to operationalize these frameworks,” Onyema said.

  • COP 23: What is at stake for Africa?

    COP 23: What is at stake for Africa?

    Delegates from about 196 countries have gathered in Bonn, Germany for what looked like a yearly ritual – the 23rd conference of parties (COP23) to the United Nations Framework Convention on Climate Change (UNFCCC).

    The conference, which began last Monday, will end on November 17,  under the leadership of Fiji, the first small island developing state to hold this role. The COP is coming at a time extreme weather events such as floods, hurricanes and fires have destabilised millions of people in Africa, Asia, the Americas and the Caribbeans. COP 23 therefore, aspires to propel the world towards the next level of ambition needed to tackle global warming and put the world on a safer and more prosperous development path.

     

    Africa and the COP Process

    At the beginning of COP 22 in Marrakech, Morocco, November 2016, the Paris Agreement era had been ushered in. Countries of the world had demonstrated commitment and the Agreement had come into force faster than anticipated. Due to this reality, COP 22 then focused on how to make Paris agreement work by setting up mechanisms and structures that would facilitate its implementation. A year later and with over 33 African countries ratifying the Paris Agreement, Africans are heading to Bonn with a bag full of expectations for the continent and the world. As the region with least contribution to green house gas emissions and the most affected in terms of climate disasters, African delegates are not happy with the failure of the COP process to close the finance gap; inadequacy in pledges; delay in addressing ‘orphan issues’ under the Paris Agreement, especially common time-frames for NDCs, and adjustment of existing NDCs. Others are recognition of developing countries’ adaptation efforts; guidance related to finance; and the slow pace and ambiguity in sequencing of work on the Paris Agreement Rule Book, thus creating roadblocks in advancing its formulation.

     

    African demands

    Prof Seth Osafo of the African Group of Negotiators (AGN) believed that the slow progress by developed country parties towards reaching the $100 billion goal of joint annual mobilisation by 2020 is not in Africa’s interest. Speaking at the African civil society Pre-COP workshop in Bonn, Prof Osafo said Africa’s interest lies in developed countries providing financial support to developing countries and positioning the Paris Committee on Capacity Building (PCCB) to provide support to developing countries in finance, technology and capacity building.

    At the Pre-COP workshop, organised by African civil society actors including farmers, pastoralists, youth and gender groups under the umbrella of the Pan African Climate, Justice Alliance (PACJA), non-state actors from the region, expressed their desire for loss and damage concerns to be fully taken into consideration as the Warsaw International Mechanism (WIM) shifts to serve the Paris Agreement after 2020. According to Mithika Mwenda, Secretary-General of the alliance, parties should establish a globally supported insurance mechanism (especially for agriculture and infrastructure sectors) in line with the objectives of the WIM for Loss & Damage by 2020. “We call on parties to establish a framework, preferably outside, but complimentary to UNFCCC, for addressing liability or compensation due to losses and damages in developing countries by extreme weather events and severe impacts of climate change,” he added.

     

    Pre-2020 commitments

    Heading into the 23rd session of the Conference of Parties this year, one of the issues that have emerged as key expectation for African Parties to this year’s climate talks is progress on pre-2020 commitments. African groups want COP23 to provide an opportunity for rich countries to revisit their commitment to undertake pre-2020  actions. The deliverables could be the concrete progress or signal with regards to the ratification of the Doha Amendment of the Kyoto Protocol (KP) to enable the entry into force of the second commitment period (for emissions reductions by developed countries under the KP) and the operationalisation of the $100 billion per year from 2020 and other resources for developing countries.

    The implementation of pre-2020 commitments, which cover actions to be taken before the Paris Agreement comes into force are of high importance to safeguard the future of the climate.

     

    Rule book for Paris Agreement

    Another issue of urgent African importance at this COP is progress on the work programme to implement the Paris Agreement. Negotiations on the Paris Rule Book will be critical to ensuring that the promises made in the Paris Agreement are met. Some of these promises include the commitment of governments to respect, protect and take into consideration existing human rights obligations. To enhance the likelihood that the Paris Agreement is effectively implemented, when developing the Paris Rule Book, parties are expected to integrate human rights and the social and environmental principles reaffirmed in the agreement’s preamble, including the rights of indigenous peoples, public participation, gender equality, safeguarding food security and ending hunger, a just transition, and ecosystem integrity.

     

    Facilitative Dialogue 2018

    According to the agreement reached in Paris, a facilitative dialogue (FD 2018) is to be convened to take stock of the collective efforts of parties in relation to progress towards the long-term goal of the Paris Agreement and to inform the preparation of nationally determined contributions (NDCs).

    The Facilitative Dialogue is expected to ensure the linkage between policies, actions and means of implementation. It will also be instrumental to maintaining the political momentum of the Paris Agreement and its long-term goal and the need to be informed by what science indicates as necessary for climate actions and ambition for next 15 years.

    The design of the dialogue as an overall feature together with the Intergovernmental Panel on Climate Change (IPCC) special report on 1.5°C, the work of the climate champions and work of non-state actors, are critical for this purpose.

    • Courtesy: PAMACC News Agency

  • New major investor acquires 4.4% stake in Livestock Feeds

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

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

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

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

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

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

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

  • Foreign investor to raise stake in Union Bank

    Foreign investor to raise stake in Union Bank

    •To increase holding from 31 to 44.5%

    Co-founder of Atlas Mara Ltd, Diamond Bob, will raise his investment in Union Bank of Nigeria Plc, from 31 per cent to 44.5 per cent.

    To achieve this, he plans to sell his stake in Atlas Mara, which has dropped almost 80 per cent since an initial public offering. He will raise more than the company’s market value by selling a 35 per cent stake to Fairfax Africa Holdings Corp.

    Union Bank is Atlas Mara’s single biggest investment in Africa. The bank announced plans to raise capital through a rights issue in November as Nigeria’s small- and mid-sized lenders struggled to cope with a contraction in the economy of Africa’s biggest oil producer.

    Atlas Mara agreed to acquire an indirect 13.4 per cent shareholding in Lagos-based Union Bank from the Clermont Group for $55 million, it said. Union Bank is going through regulatory approvals and will then start the share sale, spokeswoman Ogochukwu Ekezie told Bloomberg.

    It said Atlas Mara, which owns banks in seven African countries, has plunged in value since its December 2013 Initial Public Offering (IPO) after growth across the continent slumped and currencies weakened amid a commodities rout.

    “The firm expects to get $200 million from selling new stock to existing shareholders and Fairfax Africa and will also issue a fresh convertible bond to the Toronto-based investment company, the company said in a statement on Wednesday. Atlas Mara will use the proceeds to boost its holdings in Union Bank of Nigeria Plc to 44.5 per cent from about 31 per cent,” Bloomberg report said.

    Diamond, 65, in February ousted Chief Executive Officer John Vitalo and pledged to cut annual operating costs by $20 million after rising expenses threatened the company’s ability to expand through acquisitions.

    “A strategic partnership with Fairfax Africa creates a strong relationship between two like-minded, long-term investors in Africa. Each is focused on capitalizing on the long-term growth potential of Africa and provides permanent capital to support growth,” Atlas Mara said

    The partnership with Fairfax Africa, which last year bought Zurich Insurance Group AG’s South African business and rebranded it Byte Insurance, will give Fairfax four of the nine seats on Atlas Mara’s board. A new management incentive plan will also be put in place, while Diamond will continue as Atlas Mara’s executive chairman, the company said. Existing investors face a dilution of about 35 percent, according to data compiled by Bloomberg.

    Fairfax Africa agreed to buy at least 30 percent of the $100 million of new shares at a price of $2.25 apiece, representing an implied purchase price of 0.33 times book value, the company said in a separate statement. Atlas Mara’s stock has traded at an average this year of $2.26, according to data compiled by Bloomberg. The shares rose 1 percent to $2.54 as of 1:05 p.m. in London, giving the company a market value of $197.5 million.

    “Banks are at the forefront of economic development in sub-Saharan Africa,” Prem Watsa, Fairfax Africa’s chairman, said in the statement. “Atlas Mara represents a unique opportunity to invest in many profitable banks in the region at a very attractive valuation.

  • TUC to acquire 57% stake in Unity Bank

    TUC to acquire 57% stake in Unity Bank

    The Trade Union Congress (TUC) is to acquire 57 percent stake  in the Unity Bank.  This is to ensure the welfare of its members and to reposition the union, its President, Bobboi Bala Kaigama has said.

    Kaigama disclosed this in his welcome address at the ongoing 10th Triennial National Delegates Conference in Abuja yesterday.

    He assured that his members would not suffer after retirement, promising that they would  enjoy the fruits of their labour.

    His words:“Through the TUC economy, we are on the verge of acquiring major shareholding in Unity Bank Plc. We have a memorandum of understanding (MoU) with the management and the process is on. We will tag it as Nigerian workers’ bank and will let Nigerians know that we have a bank in place. To build a better Nigeria, we in TUC shall move from just being spectators in the Nigerian economy to becoming investors in the Nigerian economy. We can no longer afford to sit on the sidelines and watch helplessly for others to decide our future and the future of our families. We must take our future into our hands. To achieve this, join me in building the TUC economy.

    “We believe that through this innovative and bold move by TUC, we see a Nigeria where productive enterprise flourishes in an atmosphere of mutually beneficial industrial harmony and cohesion between the government, private employers and labour. We shall see a Nigeria where unions are better respected not just for their representation of the masses but also for their economic might and prowess; and their partnering with government to ensure rapid development of the nation.”

    He argued that the step is to ensure TUC becomes part of building a country that is devoid of injustice, a country that creates and ensures job security, refrain from money laundering and corrupt practices. “A country that recognises the market men, women and peasant, funds education, builds and upgrade infrastructure and the health sector on a regular basis,” he said.

  • AXA acquires 18.6% equity stake in Eranove Group

    AXA, the world’s largest insurer that recently bought majority equity stake in Mansard Insurance Plc, has acquired 18.6 per cent equity stake in Eranove Group, making inroad into utility business in the West African region.

    Emerging Capital Partners (ECP), the owner of ECP Africa Fund II which holds the majority equity stake of 55.9 per cent in Eranove Group, confirmed the acquisition on Monday. AXA consummated the transaction through AXA’s Real Estate division, which specializes in real estate and infrastructure. AXA is acquiring the 18.6 per cent residual stake which was held by the Bouygues Group.

    Formerly known as Finagestion, the Eranove Group was created when Bouygues combined the African assets of its subsidiary SAUR into a single company. ECP first bought into Eranove’s capital in 2008 and acquired a majority holding a year later.

    “Having a top-flight investor like AXA Real Estate on board is great news for Eranove and a great pleasure for ECP,” said Vincent Le Guennou, Co-Chief Executive Officer of ECP and Chairman of the Board of Eranove.

    He said with AXA as its new shareholder, Eranove would continue to pursue and broaden its goal of developing and facilitating the population’s access to essential life services.

    Eranove currently accounts for almost 70 per cent of installed electricity generating capacity in the Ivory Coast, supplying 1,136 MW via two of its subsidiaries, Compagnie Ivoirienne d’électricité (CIE) and Compagnie Ivoirienne de production d’électricité (CIPREL). CIE operates six hydroelectric and a thermic power station and also manages the transport and distribution network. CIPREL operates one of the country’s most important thermal power stations, where the company is currently completing its expansion through one of the largest infrastructure investments in recent years in the Ivory Coast (EUR 343.6 million). Phase one (111 MW gas turbine) opened in January 2014, while phase two (111 MW steam turbine) should start operation at the end of 2015.

    Eranove is also represented in the water sector through Société de distribution d’eau de la Côte d’Ivoire (SODECI) and Sénégalaise des Eaux (SDE), which are by way of delegation of public service, the leading African players in producing and distributing drinking water and sanitation.

    Eranove has also focused on expanding across Africa in recent years, winning a technical support contract from Régideso in the Democratic Republic of Congo in 2012 and in June 2015, signing a contract to design, build and operate the hydroelectric power station at Kenié with the government of Mali, through their subsidiary Kenié Energie Renouvable.

    Le Guennou noted that in choosing to make its first move into Africa with this transaction, AXA Real Estate has underlined the attractiveness of Eranove Group’s business model adding that Eranove Group has developed sound expertise in a continent whose current annual financial requirements are estimated at more than $40 billion for energy, and more than $20 billion for water and sanitation.

    It’s unclear whether AXA involvement in Eranove Group will bring the utility firm into the Nigerian market.

    Founded in 2000, ECP is a pan-African private equity firm that has raised over $2 billion for growth capital investing in Africa. ECP has a diversified set of investments with capital deployed in over 40 African countries and in various sectors including financial services, telecommunications, natural resources, agriculture and infrastructure.

    AXA had in July 2015 reincorporated Mansard Insurance Plc as AXA Mansard Insurance, to complete the acquisition and brand essence change that started late last year.

    AXA had bought 77 per cent majority equity stake in Mansard Insurance Plc, in a major market-entry push that promises to profoundly impact the Nigerian insurance industry. AXA already has a substantial presence in Africa including Cameroon, Gabon, Ivory Coast, Morocco, Senegal and Algeria.

    AXA took over the 77 per cent equity stake held by Assur Africa Holding Limited (AAH), the core investor that had purchased the former Guaranty Trust Bank insurance subsidiary. GTBank had sold its insurance subsidiary, Guaranty Trust Assurance Plc, in compliance with regulatory framework of the Central Bank of Nigeria (CBN).

    AXA had entered into an agreement to acquire 100 per cent of Assur Africa Holdings, which then held the 77 per cent equity stake in Mansard. AAH is made up of Development Partners International (UK), Africinvest Inc (Tunisia), Netherlands Development Finance Company (Holland), German Investment Corporation (Germany), French Development Finance Company (France) and ASPV Limited.

     

     

  • Investors stake N16b on equities

    Investors stake N16b on equities

    THE Nigerian stock market recorded a turnover of 1.859 billion shares valued at N16.35 billion exchanged hands in 28,383 deals last week, indicating a show down from turnover of 2.184 billion shares valued at N17.495 billion tradedin 27,786 deals two weeks ago.

    The Financial Services sector dominated the activity chart recording the highest trading volume of 1.422 billion units of shares valued at N10.579 billion in 17,662, representing 76.50 per cent, 64.70 per cent and 62.23 per cent, of the volume, value and number of deals executed on the stock market during the week.

    The conglomerates sector followed with 120.099 million shares valued at N271.453 million in 911 deals. The top two sectors accounted for 1.542 billion shares valued at N10.850 billion in 18, 573 deals, thus accounting for 82.96 per cent, 66.36 per cent and 65.442 per cent of the volume, value and number of deals respectively.

    Similarly, the banking sub sector was the most active with 1.262 billion shares. Activity in the sub sector was mostly driven by shares of UBA Plc, First Bank of Nigeria Plc and Zenith Bank Plc which accounted for 481.427 million shares, representing 38.16 per cent, 33.85 per cent and 25.90 per cent of the turnover recorded by the sub sector, sector and total volume for the week.

    Also traded during the week were 4,700 units of NewGold Exchange Traded Funds (ETFs) valued at N12.488 million traded in 12 deals in contrast to a total of 2,200 units valued at N5.959 million.

    The NSE All-Share Index swapped in eight deals penultimate week, which opened the week at 27,287.85 closed at 27,296.35, thereby appreciating 8.50points or 0.03 per cent. Market capitalisation of equities increased by N 2.710 billion (0.03 per cent) to close at N8.698 trillion.

    Also, the Bloomberg NSE Consumer Goods and NSE-Lotus II Indices appreciated by 0.46 per cent and 3.54 per cent, respectively, while Bloomberg NSE 30, Bloomberg NSE Banking, Bloomberg NSE Insurance and Bloomberg NSE Oil and Gas indices declined by 0.07 per cent (+40.03 per cent YTD), 0.57 per cent ), 3.95 per cent and 3.20 per cent.

  • Ike Uche: We know what is at stake

    Ike Uche: We know what is at stake

    The Super Eagles and Nigerians will be praying for the goals of their talismanic striker Ikechukwu Uche to deliver the Afcon ticket to them. In this brief chat with SPORTINGLIFE’S TUNDE LIADI, the Villarreal of Spain player says Eagles need not be reminded of the task before them as Saturday approaches.

    Nigeria versus Liberia holds on Saturday, what should we expect from Ikechukwu Uche and his mates?

    We are preparing well. All the players in camp know the reason why they are here. We are here to give all we can and to ensure that we come out victorious on Saturday. I don’t think there is anybody here having doubt about our capability and we are in top shape to win on Saturday.

    It was about this time last year that we lost the ticket to the Guineans after playing a 2-2 draw at home. What lessons do you think that we have learnt from what transpired in Abuja that day?

    I think we have learnt and not making it to Gabon and Equatorial Guinea early this year is a lesson for us. We all know why we are here and we can recall vividly what happened last year and we don’t have to bring it back. We know how important it is for us to go to the Nations Cup. For us, a win is non-negotiable on Saturday.

    Villarreal of Spain got demoted to the lower league last season. How has it been in the Segunda and what are the chances of the team staging an instant return to the La Liga at the end of the season?

    We are doing well in the league and hoping to gain qualification at the end of the season. But for now, we are here for the Eagles’ game and we will like to concentrate on that and not allow ourselves to be distracted with things away from the national team.

    Team talk is not important for now we are for the Super Eagles.