This Corporate News Compilation for the week ended December 9th, 2017 is brought to you by Bluechip Technology Ltd Nigeria.
- Interswitch Financial Inclusion Services (IFIS), the owners of Quickteller Paypoint announced that they have now reached the milestone of 10,000 activated agent mark. This makes them the second largest agent network in Nigeria. The CBN has also mandated the company to increase its agent network to 150,000 by 2020. Will this model not be obsolete by 2020? Just saying
- TSTv is in the news again; the embattled Pay TV competitor has now claimed it be rolling out its new decoders from the week starting December 11. Recall, the company has moved its roll out data severally after the initial October 1 date. According to the company’s PR Officer, Ernest Esssien, disclosed that they “are almost done with our test transmission and we are just putting some finishing touches and hopefully by the grace of God, between now and next week the decoders will be out for sale.” By the way, they insist that prices will remain at the initial N5k. Anyone care to share experience on the promo decoders? I hear it’s been improving.
- Nokia announced last week that it had selected MTN to help drive its drive transformation from network-to customer-centric operations. Not to be mistaken for mobile phones, it’s a solution that helps service providers have a complete view of customer satisfaction, revenue, and device and network performance. It also helps provide holistic view of service behaviour and performance.
- Reports from our sources indicate, the producers of the ubiquitous Tecno phone, Transsion Holdings will pay about $5 million to acquire Micro-Station, the Computer Village, Ikeja-based mobile phone retail chain store. This is after their alleged failed bid for Slot. This is apparently aimed at getting a foot hold of the Nigerian retail phone distribution market, where Slot has been dominant.
- Network service provider Airtel, will be rolling out their 4G LTE network this December to 3 states which includes Lagos, Abuja and Rivers States before other states will follow. You may recall that in November, Airtel had awarded a three-year contract to Ericsson. The program involves the upgrade and expansion of network elements on Airtel’s Nigeria operations, including switching, radio, network management, data, charging, and consumer-services platforms and systems and also modernizes and expands its packet core network. MTN launched its own 4G LTE last year.
- An update on Aero Contractors; The AMCON run airlines informed investors last week that they have shortlisted an initial 19 investors to invest in the airline. The CEO of the Airline, Capt. Ado Sanusi also said it will be eventually shortlisted to 6 and then to 3, the preferred bidder, second preferred bidder and the standby bidder. Sometimes I wonder how long drawn and costly this process can be. I may be paranoid but it at times looks deliberate.
- Medview commenced flight operations to Dubai, UAE last week. The announced this to investors on the Nigerian Stock Exchange last week. Coincidentally, Nigeria also signed a BASA with UAE last week.
- Well they say, everyone likes a good story. So Kellogg opened its new plant last week said to be worth about N6 billion. Stanbic IBTC not about to be left out of this story disclosed that it was the sole arranger and lender to Kellogg Tolaram. In other words, Stanbic financed this deal on its own and is set to reap fully from the benefits, assuming the loans don’t go bad.
- Are you Diary farmer or know someone who is one? FrieslandCampina WAMCO, for the first time, will bring certified dairy farmers from the Netherlands to train and advice Nigerian farmers on best dairy farming practices. We understand that the Dutch farmers are expected to engage local pastoralists on dairy farming practices like animal health and welfare, farm record keeping, feeding and watering, calf-rearing, milking hygiene, cow fertility, hoof care, housing and barn design.
- If you ask me next year will be the beginning of the Spirit War in Nigeria. As more local consumers move towards spirits, brands are noticing and shifting strategy. Last week, Edrington, an international spirits company based in Scotland announced a partnership with Premium Spirits Nigeria to sell its brand of Scottish whiskey in Nigeria. ICYDK, Premium Spirits is owned by Nigerians Bottling Company (Coca-Cola). Erdington sells the The Macallan, The Famous Grouse and Highland Park spirit brands. Guinness (Diageo), Nigerian Breweries and William Grant’s Glenfiddich.
- Sticking with Nigerian Bottling Company, they launched three new variants of its popular Five Alive Fruit Juice in Lagos last Tuesday. They claim the new variants “contain natural and local fruits such as pineapple, apple, mango, passion fruit and orange.” They claim with this variant, there is no limit to how many bottles you can drink.
- In a major surprise to Beer watchers in Nigeria, the country’s largest brewer, Nigeria Breweries launched the Stella Beer. Stella Beer brand is owned by Belgium’s Stella Artois. However, the world’s largest brewer AB InBev, is a major shareholder in Stella Artois and also manufacturers the beer. Why is this important? AB InBev is an indirect shareholder in Nigeria’s International Breweries and perhaps the most potent competitor to Nigeria Breweries dominance in the beer market. You have to respect NB strategy in the local market. They now own two of one of the world’s most popular beer brands in the country, Heineken and Stellar. Stellar is a Pilsner and a type of Pale Larger beer.
- Following the conclusion of the FIFA world cup draws, all is now set for marketing, advertising and sponsorship deals to start kicking in. Last week, the FIFA “announced” the appointment of Nigeria’s Pencilland Travels and Tours Ltd (Flyforvalue) as the Exclusive Travel Agent for 2018 FIFA World Cup tournament for the country. The contract allows the company to bundle the match tickets with other ancillary services like hotel bookings, tours and many more. Apparently, the right was secured from Integral Sponsorship & Experiential Marketing Ltd, the FIFA authorised agent for selling hospitality package in Nigeria. A bit of background of Pencilland, the company CEO, Kemi Soname is said to be a very close ally of Senator Remi Tinubu, the wife of BAT. She is also the wife of former LG Chairman for Ikosi-Isheri LG. ICYDK Mr. Soname, is the current Marketing committee chairman of the Nigerian football league and a board member of the NFL. He is also the owner of Remo Stars and two years ago bought a Portuguise second division club. He also owns Bet9ja.
- The competition and maybe bad blood between BUA and Dangote are well known, if you believe some of the press releases that the former often places in some Newspapers. Last two weeks, he accused the Dangote Group of colluding with the Ministry of Mines and Steel in Edo State to send militia to attack its cement plant in Okpella. However, the Edo State Government responded insisting that it stopped BUA from mining the minerals because it was doing so illegally. We surely haven’t seen the last of this….
- The Chairman of Innoson Group made its boldest statement yet about his plans to takeover Nigeria’s car market. He said the company will next month commence the manufacturing of affordable and quality vehicles in Nigeria by 2018. The car, he said will be big size, which will have air conditioning, automatic gear and other comforts that will make it easier for all. It will also come at an enticing price point of N3 million. Nigeria’s car market is still open for the taking with just 11.6 million cars according to the NBS. In fact, Nigeria has just 59 cars per 1000 persons compared to the likes of South Africa with 150.
- Still on cars, the leading mini bus in South Africa since 2013, Beijin Automobile Works’ (BAW) Pilot is about to Launch in Nigeria. The car which they call “Pilot” will sell for about N15 million and will compete directly with Toyota’s Hiace which goes for around N28m. They also claim that they have adapted it to suit Nigeria’s motoring environment. They have actually started assembling the cars for ABC Transport. BAW is apparently a Fortune 500 company. This auto market is up for grabs.
- Still on cars, this time Tricycle, a company has developed what is perhaps Nigeria’s first Tricycle networking app. The APP is called Matattu and was launched in Lagos last week. Samuel Ajiboyede, the co-founder of the service, speaking at the official signing of a Memorandum of Understanding with Tricycle Owners and Operators Association of Nigeria, TOOAN, said the partnership between Matattu and the tricycle operators would bring about a seamless business operation in the state. I did a background check on this Samuel Ajiboyede and I was quite impressed. He seems to have invested in several startups and is a serial entrepreneur. Will be interesting to see how this pans out.
- Edo State was in the news again last week after the State Governor commissioned a glass factory in Utesi Benin City. The factory is Rongsheng Glass Nigeria and is Chinese owned. It is quite interesting and admirable to see how strategic Chinese investments have been in Nigeria. They are basically investing in sectors that are integral to whatever industrial revolution potential that we may have. It’s no wonder, Obaseki asked the company to build schools as well as a Chinese Cultural Centre to teach the Chinese language and culture to strengthen cultural ties with their host community.
- Unilever finally opened its 10 million Euro factory in Agbara last week. The factory will manufacture the company’s product Blue Band and is said to be very energy efficient. It uses about 50% less energy compared to other manufacturing processes that utilise heat exchangers. The factory actually started production in September.
- So last week, Forte Oil released its first retail product for the Power sector. The product which it called Green Energy’ solution will retail for about N700k and has a capacity of 1.5kva. It is fully powered by Solar. It comes with an in house unit and solar panels. I mentioned last week that it looks like the solution to Nigeria’s power situation is the Bore Hole syndrome which now seems to be taking shape. Every man for himself power solution.
- Back to China, we learnt last week that Sinopec, China’s state owned oil firm is about to sell some of its assets in a deal worth about $1 billion. Sinopec has investments in Nigeria via Switzerland’s Addax.
- Still on the Chinese, reports from Enugu indicates that Chinese biggest bank, the Industrial and Commercial Bank of China, ICBC, has approved $42.5 million loan for a multi housing development scheme, HELIU residences in Enugu. The loans will apparently be funneled via Access Bank and comes at an interest rate of 4% with an 8 year repayment period.
Deap Capital Management & Trust Plc reacts to ‘rumoured’ AMCON takeover
AMCON had dragged the company before a Court in a bid to recover the debt.
Deap Capital Management & Trust Plc has reacted to media reports about the supposed takeover of its assets by the Asset Management Company of Nigeria, AMCON.
In a statement that was signed by the Company Secretary, Yetunde Fashesin-Sousa, Deap Capital admitted that it is indebted to AMCON to the tune of N1.6 billion. It was also confirmed that AMCON owns a 20% equity stake in the fund management firm.
Note that the indebtedness arose after AMCON took over ownership of certain banks. Apparently, these are banks that Deap Capital originally owed. However, following the transfer of the unnamed banks’ assets to AMCON, the debts were also transferred alongside.
Meanwhile, AMCON had dragged the company before the Federal High Court in Lagos in a bid to recover the debt. A ruling on the case, which was delivered on January 28 by the Hon Justice John Terhemba Tsoho, was in AMCON’s favour.
Following the ruling, AMCON began the process of recovering the debt from Deap Capital Management & Trust Plc. The company said it has been cooperating in this regard by working towards repaying the debt.
The company also clarified that the assets that were taken over by AMCON belonged to its former directors whose names were not mentioned. Nairametrics could not verify if these directors are among those who were recently reinstated by the Securities and Exchange Commission, SEC. But we do know that AMCON had obtained a court order to attach the ‘former directors’ assets’ in its attempt to recover the N1.6 billion debt.
In the meantime, Deap Capital Management & Trust Plc said it is committed to resolving its operational challenges, including the recovery of its operational license and profitability issues. The company’s latest earnings report (for its Q1 period ended December 31st, 2019) showed a total income of N1 billion. There was also a N6.3 million loss for the period under review.
Deap Capital’s stock opened today’s trading session on the Nigerian Stock Exchange with a share price of N0.30. Year to date, the stock has declined by some -18%.
Lafarge Africa Plc. announces its board meeting and closed period for Q2 2020
The notification which was duly signed by General Counsel & Company Secretary.
Lafarge Africa Plc. notified the Nigerian Stock Exchange and the investing public that he closed period will commence on Wednesday, 8th July 2020 until the unaudited financial statement for the second quarter ended 30th June 2020, is released to the Nigerian Stock Exchange.
In a disclosure on the Nigerian Stock Exchange, it wrote: “We hereby notify the Nigerian Stock Exchange and the investing public that a meeting of the Board of Directors of Lafarge Africa Plc has been scheduled to hold on Thursday, 23rd July 2020 to consider the second quarter financial results of the Company for the quarter ended 30th June 2020.”
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The notification which was duly signed by General Counsel & Company Secretary, Mrs. Adewunmi Alode explained further stating that “Accordingly, no Director, employee, persons discharging managerial responsibility and Advisers of the Company and their connected persons may directly or indirectly deal in the shares of the Company in any manner during the closed period.”
Over the past few months, it made a few board changes with the retirement of two of its Non-Executive Directors, as well as the appointment of three new Directors. It had also spun off its South African subsidiary, Lafarge South Africa Holdings (LSAH), last year.
Lafarge Africa’s Q1 2020 revenue was up 9.8% year-on-year to N63.7 billion, driven by higher Cement Sales (a figure up 11% year-on-year to N62.3 billion) which offset the weakness in Aggregate and Concrete (down 21% y/y to N1.4bn). Its EBITDA grew by 2.4% year-on-year to N19.3 billion as well. As at Tuesday the 7th of July, the share price of the company was N10.00.
AXA Mansard Insurance Plc gives notice of Annual General Meeting
The AGM will be live-streamed to enable shareholders and stakeholders participate.
Insurance firm, AXA Mansard Insurance Plc., has given notice of its board of its Annual General Meeting (AGM) scheduled for Wednesday, July 29, 2020, at 10:00 a.m.
The announcement which was disclosed by Nigerian Stock Exchange (NSE) in a corporate disclosure on July 7th, 2020 and signed by Company Secretary, Omowunmi Mabel Adewusi read, “Notice is hereby given that the twenty-eighth annual general meeting of AXA Mansard Insurance Plc. will hold at the Oriental Hotel, no. 3, Lekki Road, Victoria Island, Lagos on Wednesday, July 29, 2020, at 10:00 a.m.”
As noted, the purpose of the AGM is to transact the following business:
- To receive the Audited Financial Statements for the year ended December 31, 2019, and the Reports of the Directors, Auditors and Statutory Audit Committee thereon
- To authorise Directors to fix the remuneration of the Auditors
- To elect Directors and
- To elect members of the Statutory Audit Committee.
In order to ensure that all relevant stakeholders can be a part of the AGM, the company will also be streaming the AGM live. It noted that “This will enable shareholders and other stakeholders who will not be attending physically to follow the proceedings.”
The link for the live streaming of the Meeting will be made available on the Company’s website at www.axamansard.com.
Recall that a few months ago, in March, the company’s Board of Directors announced the appointment of John Dickson as the company’s new Non-Executive Director. A month earlier, it also disclosed its plan to sell its pension management subsidiary (AXA Mansard Pensions Ltd) and some undisclosed real estate investments.
Its unaudited financials for the period Q1 2020 reveal a growth across revenue and profit lines. Gross written premium grew by 21% from N17.4 billion earned in Q1 2019 to N21 billion in Q1 2020. Profit for the year for the group grew by a commendable 120% from N890 million in Q1 2019 to N1.9 billion in Q1 2020.
As at Tuesday, the 7th of July when markets closed, the share price of the company was N1.59. The company’s EPS stood at 0.33 while its price to book ratio stood at 0.6082.