Corporate actions are decisions taken by a company’s board of directors or management, that could have impact on the firm itself or shareholders.
Examples of corporate actions include the payment of dividends, closing of shareholders’ registers, announcing qualification dates and Annual General Meeting (AGM) dates.
Here is a review of corporate actions that held last week, and those expected this week.
Learn Africa Plc
Learn Africa Plc was established in 1961 and is into publication and marketing of books at all levels. The company closed its shareholders’ register from Monday the 9th of July to Friday the 13th of July, 2018. This is done in preparation of a dividend payment.
Trans-Nationwide Express (Tranex) Plc
Trans-nationwide Express (Tranex) Plc provides courier services, freight services, logistics, mail room management, and haulage services. Tranex Plc held its Annual General Meeting (AGM) on Thursday the 12th of July, 2018.
An AGM provides the opportunity for the management team of a company to brief shareholders on its plans for the year.
Guinea Insurance Plc
Guinea Insurance Plc held its Annual General Meeting (AGM) on Thursday, the 12th of July, 2018.
Conoil held its Annual General Meeting (AGM) on Thursday, the 12th of July, 2018.
C & I Leasing Plc
C&I Leasing Plc last week concluded the buyout of 27.5% minority stake in C&I Petrotech Marine Limited. C&I Petrotech Marine Limited is now a fully owned subsidiary of C&I Leasing Plc.
Equity Assurance Plc, on Friday announced its change of name to Sunu Assurances Nigeria Plc.
Corporate Actions for the week ending 20th of July 2018
Portland Paints and Products Nigeria Plc
Portland Paints and Products Nigeria was incorporated as a private limited liability company on the 3rd of September, 1985. The company was converted to a public limited liability company on the 24th of April, 2008.
The principal activities of the firm are the manufacturing and sale of paints and protective coatings for the oil and gas, and marine sectors.
Portland Paints Plc is a subsidiary of UAC of Nigeria Plc.
The company will be holding its Annual General Meeting (AGM) on Friday, the 20th of July, 2018.
NAHCO Aviance Plc
Nigerian Aviation Handling Company (NAHCO) Aviance Plc will be holding its Annual General Meeting (AGM) on Friday, the 20th of July, 2018.
AGMs provide the opportunity for investors to gain insight into managements’ plans for the new financial year. Investors would do well to pay a close watch to the AGM to gain further insight into a key investor divesting.
RAK Unity Petroleum Plc
Rak Unity Petroleum Plc was incorporated on the 20th December, 1982, as a private limited liability company and converted to a public company on 16th November, 1987. The company deals in retail and bulk supply of petroleum products, and is listed on the Alternative Securities Exchange Market (ASEM) of the NSE.
The company has picked the 20th of July as the qualification date for its dividend payment. Investors holding the company’s shares on this date will be eligible for dividends.
SEC accuse CMOs of frustrating e-dividend mandate process
The DG of SEC revealed that 4.01 million accounts still have incomplete KYC information as of April 8 despite the government’s efforts.
The Securities and Exchange Commission (SEC) has faulted the activities of some Capital Market Operators (CMOs) which frustrates the e-dividend mandate process, leading to a rise in unclaimed dividends in the capital market.
This is as the unclaimed dividends in the capital market were estimated to have risen to over N200 billion.
According to a report from the News Agency of Nigeria (NAN), this disclosure was made by the Director-General of SEC, Lamido Yuguda, while speaking at the 2021 first post-Capital Market Committee (CMC) virtual news conference.
What the Director-General of SEC is saying
Yuguda, in his statement, said that the commission was aware that some CMOs were frustrating the e-dividend mandate process.
He said, “We implore all stakeholders to comply with all directives of the Commission in this regard, as defaulters would be sanctioned appropriately. We have observed that the growth in the number of mandated accounts has been on the decline for some time.
The capital market community has directed its e-Dividend Committee to engage with the Committee of Heads of Banking Operations to encourage better cooperation from banks as we tackle the challenges of unclaimed dividends.’’
The SEC boss reminded all CMOs that the commission’s directive on the update of investors’ Know Your Customer information was still in effect noting that the level of compliance had been low in spite of several engagements by the commission.
Yuguda revealed that 4.01 million accounts still have incomplete KYC information as of April 8 despite the government’s efforts.
He said, “Despite several engagements, we realised that as of April 8, there were still 4,012,311 accounts with incomplete KYC information. This exercise is critical to deepening the participation of retail investors and we direct all CMOs to accord it the highest level of priority.’’
In case you missed it
- SEC had earlier urged all Capital Market Operators (CMOs) to update their investors’ Know Your Customer information due to the low level of compliance.
- The CMOs were also warned by SEC to stop providing any form of support to unregistered entities operating unlawfully in the country within the capital market as that would not be condoned.
BUA Cement pays N129 billion in dividend in 2 years
BUA Cement has paid shareholders a dividend of N129 billion in 2 years.
BUA Cement Plc, one of Nigeria’s leading cement producers has recommended a total dividend payout of about N70 billion from the profits made in 2020.
The company will be paying shareholders a dividend of N2.067 per share for all the outstanding 33,864,354,060 ordinary shares of the company.
According to the figures contained in the company’s audited financial statement for the period ended December 31st 2020, the cement giant has now paid about a total of N129.26 billion to shareholders since 2019.
Africa’s 6th richest billionaire, Abdulsamad Rabiu is the majority shareholder of the company, with an ownership stake running in excess of 90% of the outstanding shares of the cement company.
The billionaire owns this stake directly, and indirectly through Damnaz Cement Company Limited, BUA International Limited and BUA Cement Company Limited.
In line with this, we estimate that over 90% of the dividends paid out over the last 2 years were paid to the billionaire industrialist.
The company’s dividend policy
BUA Cement Plc has maintained a dividend payout of more than N1.75 per share in the last two years, and a dividend payout ratio that averages 97.3% over the last two years, with 2019 being the highest with about 98% in the dividend paid out of profits.
- However, the defunct Cement Company of Nigeria (CCNN) that was acquired by BUA Cement, paid shareholders a dividend of N5.3 billion in 2019, which translates to a dividend of 40 kobo per share.
- The dividend payout ratio for 2020 was 96.76%, meaning it retained a meagre 3.24% from the profits it earned during the year.
- Total profits earned since 2019 is about N132.96 billion. Thus, over the last 2 years, it has paid out 97.2% of all its profits as dividends.
- BUA Cement Plc is currently valued at about N2.46 trillion, this valuation is 34x (thirty-four times) the company’s earnings of N72.344 billion in 2020.
- Despite paying out almost all its profits in the last 2 years, the cement manufacturer boasts strong retained earnings of N159.92 billion.
What you should know
- Focusing on price appreciation, the shares of BUA Cement from the price of N35.30 per share on April 1st 2020, are worth about 106% more in recent times, as the market value of the shares of the leading cement maker is currently put at N72.70 per share.
- BUA Cement’s topline revenue rose from N175.52 billion in 2019 to N209.44 billion in 2020, the company’s profits also increased from N60.61 billion to N72.34 billion between 2019 and 2020.
- BUA Cement’s total installed production infrastructure of 8 million MTPA, in line with the cement maker’s strategic midterm expansion program is expected to expand to 20 million MTPA by the end of 2022.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- Nigerian Breweries publishes names of over 100,000 shareholders who are yet to claim their dividends.
- 2020 FY Results: Sovereign Trust Insurance Plc records a 37% increase in profit after tax.
- CSCS Plc posts profit after tax of N6.93 billion in FY 2020
- BUA Cement Plc announces Board Meeting
- Infinity Trust Mortgage Bank Plc records a 60% increase in profit after tax in Q1 2021.