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.

Corporate actions that took place last week

Mixed signals from Diamond Bank

The board and management of Diamond Bank seem to be at crossroads concerning a planned recapitalisation and capital injection by new investors.

Earlier last week, the bank had announced the resignation of its Chairman, Oluseyi Bickersteth and three other non-Executive Directors. Reports then emerged of new investors taking up a stake, and the bank’s Group Managing Director Uzoma Dozie  stepping down early next year.

On Friday, the bank issued a press statement debunking such claims. That same day, erstwhile board Chairman, Oluseyi Bickersteth maintained that he remained on the company’s board and stated that he was open to any form of recapitalisation including a rights issue and new investors.

Group Managing Director of the bank, Uzoma Dozie also disclosed that the Dozie family could consider all options, but there were none on the table.

Reports of the board shake up and new investors, led to a rally in the bank’s share price and it closed up 20% this week, making it the best performing stock.

The bank also released its results for the third quarter ended September 30, 2018, and they showed a decline in both top and bottom line.

NB declares interim dividend amidst poor results

Nigerian Breweries Plc, following a board meeting held last week, declared an interim dividend of N0.60 per share.

The company also released its third quarter results this week, and they showed a decline across all key indices. Some analysts have posited that the company may be facing tough competition from other players.

Guinness outperforms

Guinness Nigeria Plc released its results for the first quarter ended September 30, 2018. The beer giant showed massive improvement in its bottom line.

Total Nigeria follows suit

Total Nigeria Plc also released its results for the third quarter ended September 30, 2018. While revenue grew marginally, profit before and after tax saw double-digit growth.
The downstream giant also declared an interim dividend of N3 per share payable on December 10, 2018. Qualification date for the dividend is November 23, 2018, while the company’s shareholders’ register will be closed from 26 – 30 November, 2018.

FBN Holdings released its Q3 results

FBN Holdings, one of the five tier one (known in Nairametrics by the acronym, FUGAZ), released its results for the third quarter ended September 30, 2018. The results showed a slight decline in top line revenue and a flat bottom line.

Julius Berger Plc

Last week, Julius Berger Plc released its results for the third quarter ended September 30, 2018 and it showed a massive improvement compared to the same period in 2017.

Fidelity Bank Plc

Fidelity Bank Plc released its results for the half year ended September 30, 2018. While gross earnings grew at a single digit, profit before and after tax grew at double digits.

Sterling and Stanbic IBTC release stellar results 

Tier two lenders, Sterling Bank and Stanbic IBTC Plc also released results for the third quarter ended September 30, 2018, with both banks posting impressive results.

May and Baker holds Facts behind the rights

On Friday, May and Baker Plc held a facts behind the figures session for its ongoing rights issue. Proceeds will be used to pay down short term finance from banks and fund a bio vaccine joint venture with the Federal Government.

NAHCO Aviance Plc appoints new Chairman and Non- Executive Director 

In a notice dated October 26, 2018 but released today NAHCO Aviance Plc, announced that its board of directors had accepted the voluntary resignation of ArcUsman Bello and Mr. Ahmed T. Uwais as the Board Chairman and a Non-Executive Director of the Company respectively with effect from 25th October, 2018.

The Board also appointed Mr. Seinde Fadeni Oladapo and Mr. Salman Taofeeq Oluwatoyin
as chairman  and a Non-Executive Director of the Company respectively with effect from
25th October, 2018.

Corporate action taking place this week

Seplat to release Q3 2018 results

Seplat Petroleum Development Company will release its Q3 2018 results on Tuesday October 30, 2018. On Thursday last week, the company’s board had met and approved the results.

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