Nigerian Aviation Handling Company (NAHCO) Aviance Plc may have a new investor on board going by the large volume of shares that were traded in Over The Counter (OTC) transactions last week. 271.848 million shares valued at N1.787 billion exchanged hands in four deals.
The transaction is a significant one as it represents 16.6% of the company’s issued shares. NAHCO currently has 1.6 billion shares outstanding. Shares outstanding means the total number of a company’s shares that have been issued.
Companies are mandated by the Nigerian Stock Exchange (NSE) to issue a notice when an investor takes up 5% or more of its issued shares. NAHCO is yet to do this.
The striking thing about the off-market deals is the shares were traded at a significant premium to current share prices. The shares were traded at an average price of N6.52, a 73.4% premium over the company’s closing price of N3.76 per share.
Data from the company’s 2017 full year annual report, shows that as at the 28th of February, 2018, the following shareholders held 5% or more.
- Rosehill Group 9.52%
- Sycor Private Investment Limited 8.93%
- Air France 5.81%
- Lufthansa Commercial Holding GMBH 6.00%
- AWHUA Resources Limited 7.13%
2017 was a turbulent year
Last year was a turbulent one for the firm. Nobert Bielderman, ex-Managing Director resigned in August 2017, some media reports at the time had alleged his stepping down was due to allegations of improper management of finances.
The company also suffered an industrial action which culminated in a salary raise.
NAHCO Plc is currently trading at N3.76 per share, unchanged from the previous trading session. NAHCO shares have returned 37% in the last one year. From January 2018 to date, the stock is down 5.5%.
NAHCO Aviance commenced operations on April 4, 1979, with operations at the Muritala Mohammed International Airport (MMIA), but currently operates across 35 airports in the country.
The Federal Government initially held a 60% stake in the company but sold its stake through an Initial Public Offer (IPO). The company’s shares were listed on the Nigerian Stock Exchange in November 2006. The company is a member of Aviance, an international alliance of airport service providers.
Results for the first quarter ended March 2018 show revenue increased from N1.7 billion in 2017 to N2.1 billion in 2018. Profit before tax jumped massively from N1 million in 2017 to N111 million in 2018. Profit after tax also spiked from N1 million in 2017 to N97 million in 2018.