Data from the Nigerian Stock Exchange reveals that 132 million shares of Livestock feeds were traded at an off market transaction valued at N133 million.
The deal is a significant one, because it represents a significant portion of the company’s share capital. The company has an issued and fully paid share capital of 2 billion ordinary shares.
Who is selling?
The transaction was executed at N1 which is at a premium to the company’s share price of 85 kobo as at Thursday’s trading session. The bloc transaction suggest the sale is probably being made by one of the significant shareholders in Livestock Feeds.
The company before now had three strategic investors. UACN with 51%, First Capital Trust with 7.2% and Cash Craft Ltd with 5.1%.
Our bet is on Cash Craft considering the recent controversies surrounding its suspension by SEC. However, the suspension has been lifted and analysts believe the company may be exploring a divestment to aid its restructuring. There is also a suggestion that First Capital Trust might be the ones selling considering that it owns enough shares in the company to sell-down about 132 million shares.
According to our records, Cash Craft owned about 103 million shares while First Capital Trust owned about 144.7 million shares in the company.
Livestock feeds has been struggling with high operating and financing costs, and has had to rely on inter company loans from its parent company, UACN Plc and other companies within the UAC group. Half year results for the period ended June 2017, show the company made a loss of N455 million.
The company recently launched a N750 million rights issue to raise fresh funds at the rate of one new share for every two already held. In addition to an inter company debt of N1.2 billion including bank loans of N2.2 billion as at December 2016.
The company claimed it would use 40% of the equity raised in the development of a new site at
Flower Gate Industrial Area, Sagamu, Ogun State. The balance 60% it concludes will be used to finance working capital requirements.
The company explained this was what it was using the rights issue funds for
The Head Office of the Company is located on about 1.99 Acres of land size. The location accommodates the Head Office block, Ikeja Mill Office, Factory and Warehouse. However, due to growth in activities of the Mill, space constraint has become an impediment which the Company is struggling to cope with.
This resulted to leasing of warehouses at different locations for storage of raw materials, particularly during annual stockpile activities. Your Company has however acquired 10.066 acres of land at Flower Gate Industrial Area at Sagamu Interchange in Ogun State, which will provide solution to this space constraint.
The first phase of the development which includes landscaping of the site and building of warehouses, are proposed to be executed with funds from the proceeds of the Rights Issue
About Livestock Feeds
Livestock feeds Plc commenced business in May 1963 as a subsidiary of pharmaceutical giant Pfizer and was listed on the NSE in 1973. The company is engaged in the manufacturing of livestock feeds and animal concentrates.
According to information on the website of the company, in 1996-97 Pfizer divested its interest in Livestock Feeds and its interest was acquired by Adset Ltd through an M.B.O.
Later, First Capital Trust Limited was engaged as Turnaround Managers in 2005 as First Capital Trust Limited replaced Adset as the Core investor in the newly invigorated company. Also Cashcraft Asset Management became the second largest shareholder, until UACN acquired about 51% of the company.
The company is a subsidiary of UACN Plc, one of Nigeria’s oldest conglomerates. The stock closed at 85 kobo in yesterday’s trading session up 1.18% year to date, and is currently trading at 93 kobo as at 12.30pm in today’s trading session.
UACN’s major shareholder sells substantial shares
This is coming a few days after UAC Nigeria Plc announced a deal to divest 51% of its shares in UPDC.
One of the 3 major shareholders of UAC Nigeria Plc (UACN), Blakeney LLP, has substantially reduced its stakes in the conglomerate with the sale of 80 million additional shares.
This was disclosed in a notification that was sent to the Nigerian Stock Exchange (NSE) by UAC Nigeria Plc. The notification was signed by the Company Secretary/Legal Adviser, Godwin Samuel.
Note that this is coming a few days after UAC Nigeria Plc announced a deal to divest 51% of its shares in UACN Petroleum Development Company (UPDC) to Custodian Investment Plc.
An analysis of this current sales and reduction of its stake shows that Blakeney LLP reduced its shareholding in the conglomerate through a deal on August 5, at a price of N5.75 per share. A further breakdown of the transactions shows that the 80,000,000 units were sold at N5.75 amounting to N460 million in purchase consideration.
Back Story: It can be recalled that UACN had earlier sent notifications to the NSE announcing sales of 75 million shares by Blakeney between the months of April and June
- In an earlier notification sent to the Nigerian Stock Exchange and other stakeholders in February 2019, UAC of Nigeria Plc announced the emergence of three major shareholders with more than 5% stake in the company. The three major shareholders include Themis Capital Management (8.08%), Stanbic IBTC Nominees Limited (7.27%), Blakeney GP 111 Ltd (7.55%).
- Nigeria’s oldest conglomerate has gone through some major restructuring in recent times following investments by these core investors and other major shareholders. In September 2019, UACN announced the outright dissolution of its interest and restructuring of UAC Property Development Company (UPDC) with the transfer of its interest directly to the shareholders.
- Over the years, UACN has transformed from a very large conglomerate with footprints in different sectors of the economy to a leaner organization with interest in Manufacturing, Food & Beverage, Logistics, Agro-allied Industry, Paints and Chemicals.
- Blakeney Management is one of the oldest and largest institutional investors in Africa and the Middle East. They are based in London and have been managing funds since 1995 for some of the largest institutions in the world.
AXA Mansard insurance divests from AXA Mansard pension as new owner emerges
This disclosure was made in a notification that was sent to the Nigerian Stock Exchange.
AXA Mansard Insurance Plc has announced its divestment from its subsidiary, AXA Mansard Pension Limited, after agreeing to sell its stake to Eustacia Limited, a member of the Verod Group.
This is part of the insurance firm’s plan to focus on and grow its insurance businesses across all parts of the country.
This disclosure was made in a notification that was sent to the Nigerian Stock Exchange (NSE) on August 8, 2020, by AXA Mansard Insurance Plc and signed by its Company Secretary, Mrs Omowunmi Mabel Adewusi.
AXA Mansard Insurance disclosed that Eustacia Limited was selected as the preferred bidder, after the completion of a bid process. AXA Mansard along with the minority shareholder agreed to sell the entire issued ordinary share capital of AXA Mansard Pensions comprising of 60% shareholding (2,067,672,000 shares) held by AXA Mansard Insurance Plc and 40% shareholding (1,378,448,000 shares) held by the minority shareholder.
The statement from AXA Mansard Insurance reads, ‘’AXA Mansard Insurance Plc announces the divestment from its subsidiary, AXA Mansard Pensions Limited. After obtaining the Shareholder’s approval at the Company’s Extra-Ordinary General Meeting held on the 13th of February 2020, the Company commenced the process of divestment by appointing Messer Rand Merchant Bank as the Financial Advisers while Aluko & Oyebode acted as the Legal Advisers on the transaction.’’
‘’Upon completion of a bid process, Eustacia Limited (a member of the Verod Group) was selected as the preferred bidder. The Company along with the minority Shareholder entered into a sale and purchase agreement with Eustacia Limited to divest the entire issued ordinary share capital of AXA Mansard Pensions comprising of 60% shareholding (2,067,672,000 shares) held by AXA Mansard Insurance Plc and 40% shareholding (1,378,448,000 shares) held by the minority shareholder.’’
The insurance firm, also in its statement said that the divestment has received letters of no objection from the National Insurance Commission (NAICOM), National Pension Commission (PENCOM) and the Federal Competition & Consumer Protection Commission (FCCPC).
It should be noted that the completion of the divestment is, however, subject to the receipt of the final approval of the National Pension Commission.
In his reaction, the CEO of AXA Mansard Insurance Plc, Kunle Ahmed, said that this transaction marks a new step in the insurance firm’s broader strategy to focus on and grow their life, property & casualty and health businesses across all its geographies. He said that the AXA Group sees great potential in the Nigerian insurance market and believes they are ideally placed to capture these opportunities due to its market leadership position.
On his part, the CEO of AXA Mansard Pension Limited said that they are confident about Verod’s strong commitment to providing the company with the requisite support to actualize their promise to its clients and stakeholders.
A partner at Verod Group, the new owners, Eric Idiahi, said, ‘’We strongly believe that this is the ideal time to enter the market and that AXA Mansard Pensions provides an excellent beachhead from which to establish a consolidated position and gain market share.’’
Nairametrics reported early this year that AXA Mansard Insurance Plc announced that its shareholders have approved the company’s plan to sell its pension management subsidiary, AXA Mansard Pensions Ltd and some undisclosed real estate investments.
Africa’s largest telecoms firm, MTN, to divest from its Middle East operations
The MTN Group is in advanced talks to sell its stake in MTN Syria to the minority shareholder.
Africa’s largest telecoms firm, the MTN Group, has announced its plans to exit the Middle East. This is part of the wireless carrier’s strategic plan to shift focus entirely to its home continent, Africa.
The mobile operator said that as part of its medium-term strategy, it will be leaving the Middle East, starting with the sales of its 75% stake in MTN Syria. Overly reduced revenue from war-torn Syria and the complex nature of the operating environment in the country are part of the reasons MTN is divesting.
MTN’s Chief Executive Officer, Rob Shuter, noted during a conference call with reporters, that “the Middle East environment is becoming increasingly complex and it contributes less to the group’s earnings.’’
Shuter disclosed that the disposals in the Middle East region will be done in a phased manner, with its 3 consolidated subsidiaries in Yemen, Afghanistan, and Syria earmarked to be sold first. These markets only contribute about 4% to the group’s earnings before interest, depreciation, taxation, and amortization.
The MTN Group is in advanced talks to sell its stake in MTN Syria to the minority shareholder, TeleInvest, who has 25% stake in the firm, according to the CEO. He believes that the telecoms firm is better served to focus on its Pan-African strategy and simplify its portfolio by leaving the Middle East region in an orderly manner.
In the medium term, the group will also dispose of its 49% stake in MTN Irancell, one of its largest markets.
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The South African firm plans to exit the entire portfolio in time, which will then leave it with 17 subsidiaries in Africa.
Just yesterday, Nairametrics reported about MTN’s plan to sell its stake in Jumia Technologies. MTN will also be divesting from telecommunications infrastructure firm, IHS Towers. The divestments from Jumia and IHS Towers were informed by the decision to raise funds in order to reduce MTN’s debts. It will also help the company to refocus its operations.