Corporate actions are decisions taken by companies’ boards of directors or management teams, that could have an impact 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 to take place this week.
A N5 billion capital raise in view
Ellah Lakes Plc, last week released details of its Annual General Meeting (AGM) which will hold on Thursday, September 27, 2018. Key on the agenda is a plan by the directors to obtain shareholders’ approval for a N5 billion private placement.
The company has struggled over the years and has had to shut down its plantation over militant activities.
Julius Berger expands
Last week, Julius Berger Plc sent a notice to the Nigerian Stock Exchange (NSE) pertaining to a planned change in its organisational structure. The company had some time last year hinted at commencing operations in the oil and gas sector. It has subsequently begun a closed period during which parties with access to sensitive information cannot trade their shares.
Briscoe swimming in losses
After a long delay, RT Briscoe released its results for the 12 months ended December 2017 and the first and second quarters of 2018. The company remains mired in losses.
AG Leventis and Global Spectrum Services Plc held their Annual General Meetings (AGMs) on the 12th of September, 2018.
Tripple Gee and Company Plc held its Annual General Meeting on the 13th of September, 2018.
The companies are yet to release resolutions decided at the AGMs.
Greif Nigeria Plc MD retires
Greif Nigeria Plc announced the retirement of its Managing Director, Mr. Olukunle A. Obadina with effect from 31st October 2018. He will, however, remain on the company’s board as Non-Executive Director. The change comes as the company embarks on turn-around efforts.
Notore Chemical Industries Plc
Notore Chemical Industries has appointed Ohis Ohiwerei as Group Deputy Managing Director (DMD) and Chief Financial Officer (CFO).
Courteville Business Solutions Plc
Courteville Business Solutions Plc made several board appointments last week. Afam Edozie was appointed Chairman, while Olufemi Adekoya and Iruna Ejibe were appointed independent Executive Directors.
Corporate Actions taking place this week
Honeywell Flour Mills and Premier Paints Plc will be holding their Annual General Meetings (AGMs) on the 20th of September, 2018. Honeywell Flour mills will be paying a final dividend of N0.06, a day after its AGM on the 21st of September 2018.
Aluminum Extrusion Plc will be holding its AGM on the 21st of September, 2018.
UBA Plc will be paying an interim dividend of N0.20 kobo per share on the 17th of September 2018.
Access Bank Plc will be paying an interim dividend of N0.25 kobo on the 21st of September 2018.
Union Homes REIT
Union Homes Real Estate Investment Trust ( REIT) will be paying a final dividend of N0.75 kobo on the 21st of September 2018.
CBO Capital Partners, Blackman & Co. move to sell 25% of shares held in Ellah Lakes
Substantial shareholders of Ellah Lakes have resolved to sell 25% of their stakes in the company.
Ellah Lakes Nigeria Plc has announced plans to sell down a fraction of its shares held by substantial shareholders of the company
The company made this announcement via a press statement published on the website of the Nigerian Stock Exchange.
The statement revealed that three major shareholders of the company have each undertaken to sell down 25% of their shares held in Ellah Lakes on or before the 15th of March, 2021.
In 2019, following the acquisition of Telluria, the free float of Ellah Lakes was reduced to 13% as the majority of the company’s shares were consolidated. However, the free float of the company currently stands at 14.55%, below the regulatory threshold of 20%.
In a bid to bring the Company into compliance with the 20% free float requirements of the Nigerian Stock Exchange, CBO Capital Partners, Blackman & Co, Osaro Oyegun who are substantial shareholders of Ellah lakes have resolved to sell down 25% of their holdings in the company.
Noting that the decision will help to put more shares of the company in the hands of the public, and resolve the lack of liquidity in the shares of Ellah lakes.
What they are saying
While speaking on this development the CEO of Ellah Lakes Plc, Chuka Mordi explained that the company needs to have more of its shares in the hands of the public, which is one of the reasons why Ellah Lakes is a publicly listed company.
He said: “We are working towards compliance, and we fully expect that we can achieve this by the deadline of 15th March 2021, so as to galvanize and encourage liquidity in the shares of Ellah lakes Plc.”
What you should know
- CBO Capital Partners Limited and Blackman & Co. Limited who are substantial shareholders with more than 15% stakes in Ellah Lakes Plc recently acquired additional shares of the company.
- Ellah lakes maintain a free float rate of 14.55%.
- According to figures contained in the Company’s 2020 Annual report, CBO Capital and Blackman & Co. Limited held 28.20% and 16.92% of the issued share capital of the company respectively, as of 31st July 2020.
- While Enotie Ogbebor and Osaro Oyegun, who are both directors in the company held 18.8% and 4.7% of the company’s shares respectively.
Naira strengthens at NAFEX window despite 79.3% drop in dollar supply
Naira appreciated marginally against the US Dollar on Thursday as dollar supply decreased by 79.3%.
Thursday 25th February 2021, The exchange rate between the naira and the US Dollar closed at N408.67 to a dollar at the Investors and Exporters window.
Naira appreciated marginally against the US Dollar on Thursday as it closed at N408.67/$1 at the NAFEX window. This represents a 0.03% gain compared to N408.8 recorded on the previous day.
On the other hand, the exchange rate remained stable in the parallel market, closing at N480/$1 on Thursday, the same as recorded on Wednesday.
However, forex turnover at the Investor and Exporters (I&E) window decreased by 79.3% from $212.43 million recorded on Wednesday to $43.97 million on Thursday 25th February 2021.
Trading at the official NAFEX window
Naira appreciated against the US Dollar in the Investors and Exporters window on Thursday, as it closed at N408.67/$1. This represents a 0.03% gain when compared to N408.8/$1 recorded a day earlier.
- The opening indicative rate closed at N409.16 to a dollar on Thursday. This is an improvement of 0.34% compared to N409.5/$1 recorded on Wednesday.
- Also, an exchange rate of N415 to a dollar was the highest rate during intra-day trading before it closed at N408.67/$1. It also sold for as low as N382/$1 during intra-day trading.
- Forex turnover at the Investor and Exporters (I&E) window decreased by 79.3% on Thursday, February 25, 2021.
- According to the data tracked by Nairametrics from FMDQ, forex turnover decreased from $212.43 million recorded on Wednesday, February 24th, 2021, to $43.97 million on Thursday, February 24th, 2021.
The world’s flagship crypto, bitcoin recorded a sharp decline on Thursday, as it dipped about 5.7% to close at 47,521 as at the time of writing this article.
- According to a new study conducted by Crypto.com, the total number of global cryptocurrency users has hit 106 million for the first time ever, representing a 15.7% increase compared to December 2020 figures.
- The study also outlined factors contributing to the rising demand for cryptocurrency worldwide. Apart from the growth bitcoin has enjoyed recently, others include the growth of the decentralized finance market, the ability to transact using Paypal, and the adoption of cryptos by institutional investors.
- Meanwhile, the Governor of Nigeria’s Apex bank, Godwin Emefiele while addressing the Senate reiterated that cryptocurrency threatens Nigeria’s financial system and must remain under quarantine indefinitely.
- He also stated that cryptocurrency has no place in our monetary system at this time and such transactions should not be carried out through the Nigerian banking system.
Oil price dip marginally on account of pullbacks
Brent crude oil price dipped by 0.56% on Thursday 25th February 021 to close at $66.88 per barrel compared to a record high of $67.26 recorded a day earlier.
- Crude oil prices went back and forth during the course of the trading session on Thursday as pullbacks from traders waiting to see how the inventory situation in America plays out eventually saw the price of oil record a decline.
- Also, Exxon Mobil, one of the world’s largest publicly traded international oil and gas company has decided to sell its production assets in the UK’s central and northern North Sea to a private equity firm, Hitec Vision for a total of over $1 billion
- Meanwhile, the Minister of Finance, Budget and National Planning, Dr. Zainab Ahmed has described the recent rise in the price of crude oil in the global market as a welcome development.
- She stated that gaining more revenue from the sale of crude oil will yield more revenue for the government as well as reduce the country’s rate of borrowing.
- Brent crude closed at $66.88, WTI ($63.29), OPEC Basket ($64), Bonny Light ($65.36), and Natural gas ($2.764).
Steady decline in external reserves
Nigeria’s external has declined by 0.15% to stand at $35.17 billion as of February 24th 2021 compared to $35.23 recorded as of 23rd February.
- This indicates that Nigeria has lost a total of $1.13 billion in external reserve positive in the month of February.
- According to data obtained from the Central Bank of Nigeria (CBN), external reserves declined from $36.3 billion as of 29th of January 2021 to $35.17 billion as of 24th of February.
- It is however worth noting that the decline in Nigeria’s external reserve has persisted despite growth recorded in global oil prices as crude prices have grown to about $67 per barrel from $55.04 recorded as at the end of January.
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