Corporate Actions, NSE

Corporate actions are decisions taken by companies’ boards of directors or management teams, that could have impacts on the firms themselves 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 took place last week and those expected this week.

Stanbic IBTC and Diamond Bank issue denials

Last week’s news headlines were largely dominated by reports of the Central Bank of Nigeria (CBN) fining Stanbic IBTC, Diamond Bank, Standard Chartered Bank, and Citibank for issuing illegal certificates of capital importation to MTN Nigeria. 

Stanbic IBTC was fined N1.8 billion, while Diamond Bank was fined N250 million. The two banks have denied any form of wrongdoing. Stanbic IBTC has also replied the CBN with a detailed letter.

Last, of the FUGAZ banks, drop results

Access Bank and UBA Plc both released their financial results for the half year ended June 2018. The results were largely flat but in line with general industry trends.

One-time factors during the past few years, such as fx revaluation gains and high yields on treasury bills are absent this year.

The tier one lenders, however, maintained their interim dividend payouts. Access bank will be paying an interim dividend of N0.25 and UBA N0.20.

UBA also appointed four Non-executive Directors to replace those that retired.

Guinness drops bumper results

Guinness Nigeria Plc released its results for the full year ended June 2018. The results showed marked improvements from the prior year, driven largely by a drop in finance costs. The company will be paying a dividend of N1.64 per share.

The company also held a conference call where management gave an insight into its plans for the new financial year.

PZ releases poor results

PZ Cussons Nigeria Plc released its results for the financial year ended May 2018, after several delays.

Profit after tax dropped by 48%, due to high operating costs, and weak revenue growth. The parent company, PZ Cussons of the UK, had given several warnings about its poor results being largely due to the Nigerian unit. PZ Nigeria will be paying a dividend of N0.15 per share.

AIICO Insurance to hold EGM

AIICO Insurance Plc this week announced a planned Extra Ordinary General Meeting (EGM) scheduled for October 5, 2018. Agenda is to obtain shareholders’ approval for a planned N5.2 billion private placement.

The National Insurance Commission (NAICOM) in July released a three-tier risk-based capitalisation scheme for insurers.

Royal Exchange Plc strategises

Royal Exchange Plc will hold an emergency board meeting on September 11, 2018. Agenda is a proposed investment in the firm, as well as restructuring in the wake of the new NAICOM guidelines.

Sovereign Trust Insurance

Sovereign Trust Insurance will also be holding its Annual General Meeting on September 24. As part of the agenda, the company is seeking shareholders’ approval to raise capital, either through a public offer or a private placement.

Law Union & Rock CMO exits the firm

Law Union & Rock Insurance announced the exit of its Chief Marketing Officer, Steve Ajudua.

A new CFO for Flour Mills of Nigeria Plc

Flour Mills of Nigeria Plc announced the appointment of a new Chief Financial Officer (CFO), Andres Kristiannson. He will take over from the outgoing CFO, Jacques Vauthier, who will be resigning at the end of the year.

Zenith Bank 

Zenith Bank issued a statement confirming its Group Managing Director Peter Amangbo was quizzed by the Economic and Financial Crimes Commission (EFCC) over Rivers State accounts.

The bank also paid an interim dividend of N0.30 per share on August 29, 2018. If you haven’t gotten yours, please fill your e dividend registration forms.

No word from Universal Insurance Plc

Universal Insurance Plc held a board meeting last week. Items on the agenda were its 48th Annual General Meeting (AGM) and the NAICOM recapitalisation policy. The company is yet to give an update.

Annual General Meetings held

Linkage Assurance Plc held its Annual General Meeting (AGM) on Tuesday, August 28, 2018.

Learn Africa Plc, Red Star Express Plc, Flour Mills of Nigeria Plc, eTranzact International Plc, and Smart Products Plc held their Annual General Meetings (AGMs) on Thursday, August 30, 2018.

Corporate Actions expected to take place this week

Custodian Investments Plc

Custodian Investments will be paying an interim dividend on September 6, 2018.

Northern Nigerian Flour Mills

Northern Nigerian Flour Mills (NNFM), a subsidiary of Flour Mills of Nigeria Plc, will hold its Annual General Meeting (AGM) on September 4, 2018.

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