Costain Plc was in the news late last week after it announced it has finally liquidated its debt with First Bank of Nigeria Limited which led to the appointment of a Receiver Manager by First Bank for which The Exchange notified the market via its market bulletin of November 6, 2013.
The final instalment of the concessionary sum was paid by Costain (West Africa) Plc via its letter to First Bank of Nigeria Limited dated 13th January 2014 and First Bank’s acknowledge of the sum paid via its letter dated 15th January 2014. Since announcing this news their share price has risen 73% (from N1.26 to N2.18) since the announcement and over 100% YTD.
Whilst it is a welcome development that they have now paid their debt, one wonders if the recent share price appreciation is justified?
