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.
FCMB Group releases results
FCMB Group Plc released its results for the third quarter ended September 30, 2018. They show a marked increase in the bottom line (profit after tax and earnings per share), at a time when banks have delivered mostly flat, or in some cases, marginal decline.
Access Bank Plc
While Access Bank is yet to send a notice to the NSE, the bank’s CFO in a chat with Bloomberg stated that it would redeem a $400 million bond meant to mature in 2021.
The move may be an indication that the bank has no immediate need for dollar liquidity, as well as an anticipation of a slight devaluation before its maturity date.
FBN Holdings acquires FBNQT
Tier one lender and member of the FUGAZ banks, FBN Holdings, has unveiled its intentions to acquire FBNQuest Trustees, a subsidiary of its investment banking and FBNQuest Capital.
The move, according to the parent company, will provide better visibility for FBNQuest Trustees, increased oversight, and enable it tap into the synergies of the holding company.
The transfer will also enable FBNQuest Capital to focus on its core activities of advisory, structured products and other capital market activities.
Diamond Bank Plc
Still in the financial services space, Diamond Bank Plc, last Friday sent a notice to the NSE, disclosing that it had obtained the approval of the CBN to operate as a national bank.
The move means the tier two lender has a lower capital adequacy ratio, and as such may have no need to raise capital. Diamond Bank currently has a CAR of around 16%, much higher than the 10% required by national banks.
CCNN shareholders approve merger with Kalambaina Cement
Minority shareholders of Cement Company of Northern Nigeria (CCNN), also known as Sokoto Cement, last week approved the company’s merger with Kalambaina Cement.
The company’s key shareholder, which also has common ultimate ownership with Kalambaina Cement, abstained from the vote in the spirit of proper corporate governance ethics.
Following the approval, the company will seek final approval from the Securities and Exchange Commission and the Nigerian Stock Exchange.
Cutix Plc released its results for the half year ended October 2018. While revenue showed a minute increase, the company’s profit after tax dipped slightly.
Resort Savings and Loans Plc releases overdue results
Last week, Resort Savings and Loans Plc released its long overdue FY 2017 and Q1, Q2, Q3 2017 results.
The company could release some of its 2018 results this week, a move which would bring it closer to a possible capital injection by private equity firm, Milost. The non-release of its results had let
to the company being suspended from trading by the NSE, and a difficult difficult for Milost getting a proper market valuation before investing.
Consolidated Hallmark Insurance Plc
Shareholders of the company last week approved a capital raise through a N734 million private placement.
Corporate Actions taking place next week
Lafarge Africa Plc
Lafarge Africa Plc will be having a facts behind the figures session on Monday at the Nigerian Stock Exchange. The event will be an opportunity for investors to get insights into management’s plans for the rest of the year, and the performance of a rights issue held a few months ago.
FCMB Group Plc
FCMB Group Plc will be holding an investor conference call on Wednesday, the 5th of December, 2018. The event will be an opportunity for management to shed light on the factors behind its improved Q3 2018 results and plans for the 2019 financial year.