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.
Dangote delays London Stock Exchange listing
Dangote Cement Plc isn’t expected to attempt a U.K. initial public offering until at least 2023.
Africa’s richest man, Aliko Dangote, is once again delaying plans to list Nigeria’s second most capitalized company on the London Stock Exchange, rather choosing other options like boosting exports and the Nigerian company’s foreign-exchange reserves in a report credited to Bloomberg.
Dangote Cement Plc, Africa’s biggest producer of building material isn’t expected to attempt a U.K. initial public offering until at least 2023, Temilade Aduroja, Head of Investor Relations, at the Lagos-based company, said by email.
“The London listing is not something which will happen in the short to medium term. We are focused on our export strategy and increasing our foreign-currency revenue,” he said.
Dangote, a major shareholder of Dangote Cement, with a net worth of more than $14 billion has longed for the company to have a secondary London Stock Exchange listing to diversify its holding and gain more leverage to cheaper funds on international markets.
Aliko Dangote said in 2018 that the listing would happen the following year (2019), only for Brian Egan, former Chief Financial Officer, to state that 2020 was more likely.
More detail later as the story is developing…
NB Plc to raise additional N20 billion from its N100 billion Commercial Paper
Nigerian Breweries has announced the continuation of its N100 billion Commercial Paper (CP) Issuance Programme.
Nigerian Breweries has announced the continuation of its N100 billion Commercial Paper (CP) Issuance Programme in a bid to raise up to N20 billion to support its short term funding needs. The company has launched Series 9 and 10 of the programme for this purpose.
This information was disclosed in a notification signed by the Company’s Secretary, Uaboi G. Agbebaku, and sent to the Nigerian Stock Exchange.
The notification reads;
“[Nigerian Breweries Plc] is pleased to inform the Nigerian Stock Exchange and the investing public of the continuation of its “CP” (Commercial Paper) programme with the launch of Series 9 and 10 of the programme.
“Series 9 of the Commercial Paper programme would be for a tenor of 180 days, while Series 10 would be for 270 days. However, the launch of the CP opens today 23rd October 2020.”
What you should know
According to data obtained from Financial Market Dealers Quote (FMDQ), Nigerian Breweries has raised up to N90.12 billion since the start of the year.
- N52.76 billion was raised from Series 6 between February 12 to November 6, 2020.
- N13.03 billion was raised from Series 7 from April 15 to October 14, 2020.
- N24.33 billion was raised from Series 8 from April 15 to January 8, 2021.
- The recent issuance of the Series 9 and 10 CP will bring the total funds raised to N110.12 billion.
Why it matters
- The CP will help the company navigate through the recent impact of COVID-19 and other trade disruptions.
- The programme will strengthen the balance sheet of the company, and enable the brewer to execute its plans while delivering value to customers and creating wealth for shareholders,
- In like manner, the CP programme is expected to provide opportunities for non-equity investors to invest in the company and support its cost management initiatives.
MTN shareholders have made approximately N1 trillion since April 2020
Shareholders of MTN Nigeria gained close to a trillion naira in less than 7 months.
MTN Nigeria shareholders have gained N986.58 billion since the first trading session in April 2020.
This was uncovered by calculating the difference in the telecommunication giant’s market capitalization of ₦1.832 trillion at the open of trade, for the first trading session in the month of April 2020, and the market capitalization of ₦2.646 trillion at the close of trade in the first trading session in the month of October.
This gives a whopping N814 billion increase in market capitalization, and this with the dividend the company has paid to shareholders on two occasions between this time period, brings the total gains both realized and unrealized to approximately N1 trillion.
Hence, the N814 billion increase in market capitalization translates to the joint gains MTN investors have made from the increase in the shares of the company, as the share price of the company has increased by 44.44% or ₦40.00 between April 1, 2020, and October 2, 2020, with the share price of increasing from ₦90.00 to ₦130.00.
However, the gains MTN NG investors have made from their investments in the telecommunication company, is not limited to the gains driven by the increase in the price of the shares.
Recall that the company declared payment of dividends to its shareholders on two occasions, as investors/shareholders of the company, whose names appear in the Register of Members, as of the close of business on April 17, 2020 and August 14, 2020 were paid a cumulative dividend per share of ₦8.47, for all the outstanding shares of 20,354,513,050 held by the shareholders, and this translates to a total dividend payout of N171 billion by the company to its shareholders.
It is noteworthy that the realized and unrealized gains MTN investors have made from holding the shares over this period stands at N986.58 billion.