The Nation Newspaper

Tag: Stock Exchange

  • Media Trust likely for stock exchange listing, says chair

    The Chairman of Media Trust Ltd, Mallam Kabiru Yusuf, said yesterday the company might be listed on the Nigerian Stock Exchange in future.

    He said it will soon inaugurate another press in Sokoto to increase its plants to five.

    Yusuf said although the prophecy of social media displacing newspapers has not been fulfilled, the firm is facing the reality that the future is digital publication.

    The chairman, who spoke at a briefing to begin the 20th anniversary of the company, said the newspaper had 20 shareholders, including 19 individuals and the shares allotted to staff.

    He said: “There are plans, but maybe they haven’t matured yet. As I said, we are a business and above all else, we are a business and going into stock exchange will not be a strange idea at all.

    “When we feel ready for it, I am sure we will be willing to do it. Some of the expansion plans we have, especially for the digital and electronic media, will require raising capital and newspapers find it very challenging to raise capital from banks.

    “So, when we look at the future, we feel that we must find new creative ways to raise capital to grow and even sustain what we have. So, it won’t be strange if you hear that we have gone into stock exchange.”

    Yusuf explained how the Media Trust was conceived and the tough terrain the management went through.

    “We wanted a job, we tried to create one, we were lucky we tried to sustain it. We needed a job, if you don’t have somebody giving it to you, you can do it yourself.

    “We started as a weekly newspaper in March 1998 under the administration of a former head of state, the late General Sani Abacha. It was published on Fridays. It was a tough period, but we were determined to be ourselves and not to be dictated to.”

    Yusuf, who narrated how Media Trust Ltd began operation from one room, said: “We think it is a time to reflect and thank God that we are still around.”

    Responding to a question, he said: “We broke even a long time ago. This is a business and a very serious one. A lot of people didn’t give us a chance to succeed, but we thank God we have broken even.

    “There is no magic, we just worked very hard.”

    Yusuf said the company was thinking of increasing its printing plants from four to five.

    He added: “Of course, success either way includes materials, building office, expanding our press around the country. We are now in four places, but we hope to be in five places.

    “We are in Lagos, Kano, Abuja and Maiduguri. We are thinking of having another press in Sokoto soon.

    “So for us, we want to be a daily paper that is available in the morning, not by  2pm,  which sometimes is what happens because of logistics.

    “It is in our mind that we have achieved a milestone, but the excitement is to see the product in the morning. It is always a joy to wake up in the morning and see that our product is out.”

    Asked of the low points of the company, Yusuf said one of it was the initial difficulty in paying workers’ salaries.

    He said: “I am thinking of two points. One was in the early days in Kaduna and our then finance manager said to us that ‘look, the way things are going, we may not be able to survive the next few months’, because the cash flow was very poor and he was speaking from the professional point of view. His name is Aminu Bebeji.

    “We were busy battling with so many things and there was hardly money to pay salary. What he said then was a low point for me, but we didn’t accept it. We said, ‘fine, the numbers are down, but we will try our best and let’s see what will happen.’”

    On the probability of social media displacing newspapers, the Media Trust chairman said: “We are waiting to see the fulfilment of that prophecy.

    “We have been threatened with that for too long. When television came, they said the same thing. It is true that we have to mind the online because the future is digital and we are well aware of it. The future is digital and there is no two ways about it. You have to prepare before you get there and not when you get there.

    “This is a business; if we don’t succeed as a business then we feel that even the editorial product will suffer. Our main challenge is to see that the success is both by having a good editorial product that wins you readers, winning more readers and more advertisers.

    “So, that is why I said it is a big challenge to succeed as a newspaper. It requires intellect, business, political and other things have to come together in order to keep head above water.”

  • Stock Exchange tightens regulation with new structure

    The Nigerian Stock Exchange (NSE) has promoted Ms Tinuade Awe to the  newly created office of Executive Director, Regulation as part of efforts to strengthen regulatory framework and surveillance at the stock market.

    Awe was, prior to her new appointment, the General Manager, Legal and Regulation Division of the Exchange, in which role she had also served as General Counsel of the Exchange. Her new appointment has already been approved by the Securities and Exchange Commission (SEC), Nigeria’s apex capital market regulator. The appointment took effect from January 1.

    As Executive Director, Regulation in the NSE’s revised organisational structure, Awe has oversight functions over broker dealer regulation, listings regulation, market surveillance and investigations and regulatory technology while the rules and interpretation and disciplinary units of the Exchange will also report directly to her.

    Nigerian Stock Exchange (NSE)President, Mr. Abimbola Ogunbanjo, said the Exchange was confident that Awe would continue to exert her influence and leadership  attributes in her new role for the betterment of the market and its stakeholders.

    “I am very proud that the National Council has recognised Tinuade for the exemplary role she has played in transforming the Legal and Regulatory landscape of the Exchange and would like to warmly congratulate her on her elevation as Executive Director, Regulation. Tinuade’s  passion, energy and commitment to driving and executing on the Exchange’s transformation agenda has no doubt been instrumental in  revolutionising the Exchange,” Ogunbanjo said.

    NSE Chief Executive Officer, Mr. Oscar Onyema, noted that as the Exchange restructures and repositions for the fourth industrial revolution, Awe’s well deserved promotion is indicative of the great career advancement opportunities that exist at the NSE.

    “I congratulate her and look forward to working with her in this new function to build a globally competitive self-regulatory organisation,” Onyema said.

    Awe reiterated her commitment to continuing to provide quality service to the Exchange and its ecosystem by engendering an improved compliance culture based on substantial engagement as well as deployment of appropriate enforcement mechanisms.

    She added that she will also continue to promote full embracement and further deployment of technology to serve regulatory purposes while also furthering regulatory remit through key relationships with other regulators.

    Awe is a consummate professional with varied professional experiences garnered across three continents.  She has an LL.B degree from the Obafemi Awolowo University, graduating as the Best Female Student in the Faculty of Law.  She finished at the Nigerian Law School with First Class Honours, graduating as Best Overall Student. She also holds LL.M  from the Harvard Law School, where she was a Landon H. Gammon Fellow, as well as The London School of Economics and Political Science (LSE), where she graduated with merit.  At the LSE, she was a British Council Scholar.  She is admitted to both the Nigerian and New York Bars.

    She had served as Secretary to the Council of the Exchange from January 2011 to October 2015.  Awe became affiliated with the Exchange in a consulting capacity in August 2010 and joined the Exchange in August 2012.  She has been a member of the Executive Committee of the Exchange since August 2012.

  • Stock Exchange places 7-Up on full suspension

    Authorities at the Nigerian Stock Exchange (NSE) at the weekend slammed a full suspension on the shares of Seven-Up Bottling Company (7-Up) Plc following the bid by the foreign majority shareholder in the soft-drink company, Affelka SA to buy out all minority shareholdings.

    Under full suspension, there will be neither trading nor price movement on the company’s shares.

    According to the Exchange, the suspension was for the purpose of determining the shareholders who will qualify to receive the scheme consideration under the Affelka SA’s buy out deal.

    The Exchange at the weekend noted that the acquisition of minority shareholdings will result in the voluntarily delisting of 7-Up Bottling Company from the Exchange.

    Shareholders of Seven-Up Bottling Company had last Thursday approved a plan by the majority shareholder, Affelka SA to acquire the outstanding 26.8 per cent shares held by the minority shareholders.

    At a court-ordered meeting in Lagos, shareholders approved the scheme of arrangement for the acquisition. With the ongoing acquisition process, Affelka SA will increase its ownership of the Nigerian soft-drink company to 100 per cent by acquiring all the outstanding and issued shares, previously held by the minority shareholders.

    In consideration for the transfer of the shares, a payment of N125 per scheme share will be made to each shareholder. This payment represents a 22.6 per cent premium on the last traded share price of Seven-Up on January 9, 2018 and a 27.6 per cent premium on the share price as at close of August 9, 2017 being the last business day prior to the date the initial proposal was received from Affelka.

    Chairman, Seven-Up Bottling Company Plc, Mr. Faysal El-Khalil said the acquisition will create considerable benefits and opportunities for all stakeholders of the company while also helping to protect minority shareholders from a continuous erosion of value.

    “Furthermore Seven-Up Bottling Company Plc is again assured of Affelka’s long-term commitment to the company and Nigeria,’’ El-Khalil said.

  • Stock Exchange expels 90 stockbrokers from capital market

    Stock Exchange expels 90 stockbrokers from capital market

    Authorities at the Nigerian Stock Exchange (NSE) has revoked the operating licence and expelled Midland Capital Markets Limited from the capital market, bringing to 90 the number of stockbrokers so far expelled from the market this year.

    A regulatory document obtained by The Nation indicated that the decision to revoke the operating licence and expel Midland Capital Markets Limited was taken by the National Council of the Exchange, the highest administrative organ of the NSE.

    Midland Capital Markets Limited has also been deregistered as a capital market operator by the Securities & Exchange Commission (SEC). While the regulatory document was silent on the reason for the revocation and expulsion of the stockbroking firm, capital market regulators traditionally apply the highest punishment of expulsion and revocation of licence to serious offences that could undermine investors’ confidence including fraud and inability to meet major operating requirements for the function.

    With the expulsion, the stockbroking firm will not be able to trade in the Nigerian stock market and other international markets that Nigeria has Memorandum of Understanding (MoU) with. Nigerian capital market authorities have standing bilateral agreements with several other jurisdictions including Morocco, Angola, China, Ghana, Kenya, Malaysia, Mauritius, South Africa, Tanzania and Uganda.

    With the expulsion, investors who have their investment accounts with the expelled stockbrokers will be required to move their accounts to other functional stockbroking firms.

    Also, directors, executives, top management and other employees of Midland Capital Markets Limited will not be able to secure any employment in the capital market without prior clearance and written consent of the Exchange.

    “Dealing members are advised not to engage in any activity with the above mentioned firm. Also, all authorised clerks and employees of dealing member firms are strongly advised against allowing themselves to be used in carrying out activities that are capable of affecting the integrity of the market,” NSE stated.

    The Exchange stressed the need for dealing firms to always comply with extant rules and regulations.

    Under Rule 6.12 of the Rulebook of the Exchange, 2015, members of the Exchange are disallowed from employing any of directors, authorised clerks or other persons including principal officers such as the chief executive officer, chief finance officer, chief compliance officer and chief risk officer, who have been indicted by the Exchange or the Commission without prior regulatory approval.

    Also, the rule disallows other stockbroking firms from employing any person who was an officer or employee of a stockbroking firm or dealing member expelled from the Exchange; any person expelled, as an authorised clerk or its equivalent, from any other exchange; any person refused admission as a member of the Chartered Institute of Stockbrokers or any person expelled from its membership; any person expelled as a member of any professional association or institute and any person who is insolvent or has been convicted of theft, fraud, forgery, or any other crime involving dishonesty.

    The Rulebook of the Exchange 2015 provides that: where the Exchange revokes a dealing member’s licence, the Exchange shall immediately commence the process of expelling such dealing member.

    Besides, the rules empower the NSE to suspend any authorised clerk or revoke the registration of any authorised clerk who has breached any rules or regulations of the Exchange or is found to be complicit in any breach of such rules or regulations.

    Also, suspension of any stockbroking firm by SEC will lead to immediate suspension by the NSE while revocation of any broker’s registration will lead to expulsion of the firm by the NSE.

    “Without  prejudice  to  all  the  remedies  open  to  the  dealing  member, where  a  dealing member is suspended by the Commission, as soon as the Exchange is notified, it shall immediately  commence  the   process   of  suspension or  expulsion of   the   dealing member.

    “Where a Dealing Member’s registration is revoked by the Commission, as soon as the Exchange  is  notified,  it  shall  immediately  commence  the  process  of  expulsion  of  the dealing member,” the rules stated.

    The NSE had recently revoked the operating licence and imposed a fine of N582.37 million on a stockbroking firm-Bytofel Securities and Investment Limited, for allegedly engaging in fraudulent activities in the stock market.

    Bytofel Securities was expelled for engaging in “unauthorised sales of clients’ shares and misappropriation of clients’ funds”.

    The Nation had earlier reported the expulsion of 67 stockbrokers from the master list of dealers at the stock market. A regulatory report had indicated that the expulsion was the final phase of the delisting of the stockbroking firms, after their dealing licences had been revoked by the exchange.

    A source at the exchange said the expulsion followed recommendation of the disciplinary committee of the council of the exchange and the final approval of the National Council of the Exchange.

    That round of expulsion in May 2017 brought the number of stockbroking firms that had then been expelled from Exchange to 88 stockbroking firms. The Nation had earlier in April 2017 reported the expulsion of 21 stockbroking firms for various infractions ranging from poor capitalisation to unauthorised sales of investors’ shares.

    The group of 67 expelled stockbrokers included ATIF Securities Limited, Abacus Securities Limited, ABC Securities Limited, Akitorch Securities Limited, All Wealth Securities Limited, Apex Securities Limited, Asset Plus Securities Limited, Associated Securities Limited, Avon Finance and Securities Limited, Beachgroove Securities & Investments Limited, Broadedge Securities Limited, Bullion Securities Limited, Cardinal Securities Limited, City Investment Management Limited, Comment Finance & Securities Limited, Corporate Trust Limited, Crown Merchant Securities Limited, Dalgo Investment & Trust Limited, Devcom Securities Limited, Devserv Finance & Securities Limited, EBN Securities Limited, Equity securities Limited, Farida Investment and Finance Limited, Gilts and Hedge Finance Limited, Global Investment & Sec Limited, Goldworth Securities Limited, Haggai Investment & Trust Limited, Halsec Finance Limited, HP Securities Limited, Investicon Nigeria Limited, Investment Resources Limited, Island Securities Limited and Jenkins Investments Limited.

    Others included Kapital Securities Limited, Lozinger Securities Limited, M&M Securities Limited, M. J Securities & Investment Limited, Majestic Securities Limited, Matrix Capital Management Limited, MBA Securities Limited, MBCOM Securities Limited, Merchant Securities Limited, Metropolitan Trust Nigeria Limited, MMB Securities & Trust Limited, MMG Securities Limited, Nationwide Securities Limited, New Horizons Finance and Investment Limited, Nigbel Securities Limited, Omega Securities Limited, Omnisource International Limited, OpenGate Finance Company Limited, Pacific Securities Limited, Pamal Finance Limited, Peak Securities Limited, Prime Securities Limited, Prudent Stockbrokers Limited, Royal Securities Limited, Source Finance and Trust Company Limited, Supreme Finance & Investment Co. Limited, Synergy and Assets Trust Limited, Thomas Kinsley Securities Limited, Tradestamp Securities Limited, Trust Securities Limited, Unit Trust Securities Limited, Universal Securities Limited, Viva Securities Limited and Wintrust Limited.

    Capital market authorities had earlier in the year expelled 21 stockbroking firms including Allbond Investment Limited, Consolidated Investment Limited, Dakal Services Limited, Emi Capital Resources Limited, First Equity Securities Ltd, Ideal Securities Limited, Maninvest Asset Management Plc, Metropolitan Trust Nigeria Limited, Omas Investment & Trust Company Limited, Pennisula Asset Management & Investment Company Limited, Prudential Securities Limited, Securities Trading & Investments Limited, Transglobe Investment & Finance Company Limited, Tropics Securities Limited, Wizetrade Capital & Asset Management Limited, WT Securities Limited, Zuma Securities Limited, Bosson Capital Assets Limited, KFF Worldwide Solutions Limited, Silver & Gold Securities Limited and First Alstate Securities Limited.

  • Stock Exchange charges new stockbrokers on integrity

    The Nigerian Stock Exchange has urged newly inducted stockbrokers to contribute to the development of the Nigerian capital market by operating in line with extant rules and international best practices.

    At the induction of recently qualified dealing clerks at the NSE in Lagos, Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, underscored the importance of professionalism, integrity, transparency and reliability in order to deliver excellent service to quoted companies and investing public.

    According to him, as the NSE continues to work on its goal of becoming a more agile and demutualized exchange, the importance of the role of stockbrokers cannot be over emphasized.

    “It goes without saying that the investing community will know and judge the Nigerian capital market through your character and service innovation. The manner in which you engage and render your professional duties to your clients will go a long way in shaping the perception of our market,” Onyema said.

    He noted that with the extremely thorough and strict process leading to the stockbrokers’ qualification, there is no doubt that they are worthy to be practicing stockbrokers enabled to trade on any floor of the NSE in Nigeria.

    He assured that the Exchange would support the new brokers in developing their capacity and businesses.

    He however warned that the NSE will not hesitate to wield the axe on any erring member that falls short on any of its rules.

    “Let me be clear that we have a zero tolerance policy on all infractions and I am confident that I will not get a negative report concerning any of you. To this end, I would like to challenge you to uphold the tenets of your profession. Let your word be your bond. This would not only build and sustain a transparent and harmonious working relationship, but would also engender confidence and growth of your respective organizations and the capital market at large,” Onyema said.

     

  • Stock Exchange begins trading on Lafarge Africa’s N132b rights issue

    The Nigerian Stock Exchange (NSE) has begun trading in the rights of Lafarge Africa Plc, giving renouncing shareholders opportunity to trade on their shares. Lafarge Africa is trading at the NSE at N50 per share; about 18 per cent gain on the rights’ offer price of N42.50 per share.

    Lafarge Africa had at the weekend opened application list for its N131.65 billion rights issue as the cement group seeks to deleverage its balance sheet and rebuild a more supportive capital base. In the third quarter ended September 30, 2017, Lafarge Africa’s net finance expense jumped from N7.4 billion in third quarter 2016 to N17.31 billion in 2017.

    Lafarge Africa plans to raise N131.65 billion through a rights issue of about 3.1 billion ordinary shares of 50 kobo each at N42.50 per share. The new shares have been pre-allotted to shareholders on the basis of five new ordinary shares for every nine ordinary shares held as at the close of business on November 1, 2017. The acceptance list, which opened on Friday November 24, 2017, will run till the close of business on Friday, December 15, 2017.

    LafargeHolcim, which holds the majority equity stake of 72.59 per cent in Lafarge Africa, has already indicated it will subscribe fully to its rights.

    Chairman, Lafarge Africa Plc, Mr. Mobolaji Balogun, said the recapitalisation would help to reduce the group’s exposure to adverse foreign currency translation losses as experienced in 2016 following a 40 per cent depreciation of the Naira against the Dollar.

    He noted that the decision of LafargeHolcim to convert existing loans into equity demonstrates the core investor’s continued belief in the Nigeria story, pointing out that the rights issue is the largest so far in the Nigerian capital market and the largest investment in a listed company by an investor.

    According to him, the rights issue will help to reduce the group’s foreign currency exposure by 50 per cent while the remaining portion of the debt, with the support from LafargeHolcim, has been refinanced and hedged for 12 months.

    Lafarge Africa ended the third quarter with a marginal recovery in profitability as significant increase in net interest expense constrained the bottom-line.

    Despite about 39 per cent growth in sales, Lafarge Africa ended the third quarter with a pre-tax profit of N1.08 billion.

    Key extracts of the interim report and accounts of Lafarge Africa Plc for the period ended September 30, 2017 showed that sales rose by 38.9 percent to N223.67 billion in 2017 as against N161.04 billion recorded in comparable period of 2016. Gross profit also surged from N18.11 billion in 2016 to N57.31 billion in 2017. The cement manufacturer pooled operating income of N18.40 billion in 2017 compared with operating loss of N32.97 billion in comparable period of 2016.

    However, net finance expense jumped from N7.4 billion to N17.31 billion. Profit before tax thus depressed to N1.08 billion, albeit a considerable recovery when compared with pre-tax loss of N40.37 billion in 2016. After taxes, net profit stood at N937.91 million by September 2017 compared with net loss of N37.4 billion in 2017. Earnings per share was modest at 10 kobo in 2017 compared with net loss per share of N8.27 in corresponding period of 2016.

  • Stock Exchange removes full trading suspension on Oando

    Investors resumed trading on the shares of Oando Plc yesterday as the Nigerian Stock Exchange (NSE) lifted the full suspension placed on the shares of the indigenous energy group. The NSE meanwhile replaced the full suspension with a technical suspension, implying that while trading will continue unhindered on the shares of Oando, there will be no price movement.

    Oando traded at N5.99 per share yesterday, the price that it will continue to trade on for the period of the technical suspension.

    A full suspension is the halt of trading activities in a listed security for a period. A technical suspension is the interruption of price movement in a listed security for a period so that any dealings in the securities which occur during the period of the suspension will not result in any change in price, which change may have occurred had the suspension not been implemented.

    “Please be informed that effective today, Monday, 23 October 2017; the shares of Oando Plc have been placed on technical suspension. Thus, the shares will be available for trading but there will be no price movement while the technical suspension subsists,” the NSE stated.Securities and Exchange Commission (SEC) had last week ordered the placement of full suspension on the shares of Oando as the apex capital market regulator launched a forensic investigation into allegations leveled against the management of Oando by two aggrieved shareholders. The Commission also indicated that the full suspension should be relaxed to technical suspension after 48 hours.

    In responding to the suspension and investigation, the management of Oando had reiterated its commitment to protecting the interest of all shareholders.

    “The company remains committed to act in the best interests of all its shareholders,” Oando stated in a short statement signed by its Chief Compliance Officer and Company Secretary, Ayotola Jagun.

    SEC had launched a forensic audit into the operations and governance of Oando in furtherance of the Commission’s investigation into allegations of corporate governance abuse and improper dealings.

    In a notification of the suspension signed by General Counsel and Head of Regulation, Nigerian Stock Exchange (NSE), Tinuade Awe, SEC directed that the NSE should impose full suspension on the shares of Oando for 48 hours with effect from today October 18, 2017 to October 20, 2017.

    Also, with effect from October 20, 2017 and until further directive, the Exchange should implement a technical suspension in the shares of Oando Plc.

    In an official circular on the suspension, SEC explained that the suspension and forensic audit were in relation to the two petitions from Alhaji Dahiru Barau Mangal and Ansbury Incorporated.

    According to the Commission, a comprehensive review of the petitions showed that there were breach of the provisions of the Investments & Securities Act 2007, breach of SEC Code of Corporate Governance for Public Companies, suspected insider dealing, related party transactions not conducted at arm’s length and discrepancies in the shareholding structure of Oando Plc among others.

    “The Commission’s primary role as apex regulator of the Nigerian capital market is to regulate the market and protect the investing public. The Commission notes that the above findings are weighty and therefore needs to be further investigated. After due consideration, the Commission believes that it is necessary to conduct a forensic audit into the affairs of Oando Plc. This is pursuant to the statutory duties of the Commission as provided in section 13(k), (n), (r) and (aa) of the ISA 2017,” SEC stated.

  • Afreximbank’s DRs start bullish on Mauritius Stock Exchange

    Afreximbank’s DRs start bullish on Mauritius Stock Exchange

    Following the successful close of the private placement with subscription far in excess of the $100 million minimum, Depositary Receipts (DRs) of the African Export-Import Bank (Afreximbank) have  started trading on the Stock Exchange of Mauritius (SEM), with the Bank topping the list of issuers in terms of capital raised prior to a listing.

    As per regulation, 5,000 DRs were listed at an initial price of $4.30 per DR. On the first trading day, the DRs closed, up 2.3 per cent, at $4.40 per DR and a market capitalisation of more than $170 million.

    The listing of the Depositary Receipts represents a big first for Africa’s equity capital markets and marks the achievement of a unique initiative on which Afreximbank had been working with SBM Group, a leading Bank in the financial sector in Mauritius, as lead arranger and depositary of the DRs.

    In a ceremony marking the first day of trading of the DRs, Afreximbank President, Dr. Benedict Oramah, noted that by investing in the DRs, investors would immediately diversify their risks across the 46 economies of the bank’s African member states, with diverse opportunities, vibrancy and risk profiles, thereby protecting themselves from country and currency risks.

  • Stock Exchange locks up N807m as Avon Crowncaps prepares for delisting

    The suspension of trading on the shares of Avon Crowncaps & Containers (Nigeria) Plc has locked in more than N807 million in market valuation of shareholders’ holdings. The Nigerian Stock Exchange (NSE) had on August 31, 2017 suspended trading on the shares of Avon Crowncaps.

    The full suspension implies that there will be no trading and price change on the shares of the packaging company, locking up the N807.09 million market value of Avon Crowncaps. Avon Crowncaps has total issued and outstanding shares of 683.97 million listed on the main board of the NSE. The closing price for the company was N1.18 per share.

    The NSE stated that the suspension was “in compliance with the approved scheme of arrangement between the company and holders of its fully paid ordinary shares which will lead to the voluntary delisting of the company from the official list of the Exchange”.

    More than 80 per cent of Avon Crowncap’s equities are held by foreign core investors. Avon Crowncaps manufactures and sells drums, crowncaps, pilfer-proof caps, containers, metal printing, inks, colourants and pigment pastes amongst others.

    The decision to delist capped a long period of poor performance by the Avon Crowncaps, which had blamed inclement macroeconomic condition and cheap imports from Asia and Europe for its declining performance.

    The company had rued extremely difficult situation that was orchestrated by competitive threat to the company’s products from cheaper substitutes in the form of rigid as well as flexible plastic packaging.

    The company also blamed cheap imported products from Asia and Europe for the downtrend in the Nigerian market, adding that the operating environment was worsened by sluggishness in the economy on account of tight liquidity and high interest rates.

    Avon outlined that structural problems afflicting the macro economy and security situation prevailing in certain parts of the country as well as delays in receiving payments from customers compounded its poor performance during the period.

  • Stock Exchange places 49 firms under caveat

    Investors need to beware while seeking to buy or trade on shares of 49 quoted companies, a latest compliance assessment report by the Nigerian Stock Exchange (NSE) has shown.

    The latest tracker report on corporate governance, regulation and compliance obtained by The Nation indicated that 49 companies have pending and unresolved compliance and governance issues that place them below the high standards required of quoted companies. The number of companies tagged with the red alert for various deficiencies represents about 28.5 per cent of the 172 total number of quoted companies at the Exchange.

    The report was based on the Compliance Status Indicator (CSI) of the NSE, which uses three-letter codes to mark out companies that fall below the post-listing requirements at the Exchange. The tracker is updated regularly with addition of newly deficient companies and release of newly compliant companies.

    The companies under the red-alert warning included Union Bank of Nigeria, Presco, Skye Bank, Transcorp Hotel, Resort Savings and Loans, Evans Medical, Academy Press, Nigerian-German Chemicals and Caverton Offsshore Support Group.

    A breakdown of the compliance report indicated that 22 companies were flagged for failure to submit their earnings reports within the scheduled timeline, nine companies were tagged for free float deficiencies, five companies were under delisting process, two companies were under restructuring while 10 other companies had compounded regulatory issues.

    The flagged companies included Capital Hotel, Chellarams, Interlinked Technology, Infinity Trust Mortgage, E-Tranzact, Omatek Ventures, Roads Nigeria, Multi-Trex Integrated Foods, Aso Savings & Loans, Ekocorp, Ikeja Hotel, Union Homes and Savings, Deap Capital Management & Trust, International Energy Insurance, Afrik Pharmaceuticals, Anino International, African Paints, Goldlink Insurance and Thomas Wyatt Nigeria.

    Others included Golden Guinea Breweries, FTN Cocoa Processors, African Alliance Insurance Company, Austin Laz & Company, Daar Communications, Fortis Microfinance Bank, Juli, Great Nigerian Insurance, Capital Oil, Union Dicon, Union Diagnostics, Universal Insurance, Premier Paints, Avon Crowncaps & Containers and Afromedia.

    The NSE uses 10 codes to tag companies with regulatory and compliance issues in order to draw attention to the unresolved deficiencies as part of efforts to enhance market integrity and ensure investors have full and transparent disclosures to make their decisions.

    The code-Below Listing Standard (BLS) comprises all deficiencies regarding continuing listing standards. Missed Regulatory Filing (MRF) implies that the company missed regulatory filing deadline. Delisting Watch-list (DWL) relates to companies that have been served with a delisting notice but the delisting process has been put on hold because they have received a stay of action from the Exchange for a defined period during which they undertake to cure the issues that led to the issuance of the delisting notice. If they fail to cure the issue within the defined period or any extension thereof, the hold on the delisting process will be lifted.

    Also, Delisting in Progress (DIP) defines companies that are in the delisting process, mandatory or voluntary. Usually, the delisting process commences with a notice of intention to delist from The Exchange to an issuer, in the case of mandatory delisting, or to the Exchange from an issuer, in the case of voluntary delisting. Awaiting Regulatory Approval (AWR) implies that the companies that are awaiting the approval or no objection of their primary or another government regulator before releasing their audited financial statements.

    Other codes included Restructuring (RST), which relates to companies that are in the process of restructuring; Below Listing Standard and Missed Regulatory Filing (BMF), companies that  missed regulatory filing and were below listing standard; Below Listing Standard and Awaiting Regulatory Approval (BAA), companies with below listing standard and awaiting regulatory approval; Below Listing Standard and Restructuring (BRS), below listing standard and restructuring; Missed Regulatory Filing and Restructuring (MRS), missed regulatory filing and restructuring; and Below Listing Standard, Missed Regulatory Filing and Restructuring (BMR), which defines companies with  below listing standard, missed regulatory filing and restructuring codes.