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 release of quarterly and full year results, payment of dividends, closing of shareholders’ registers, announcing qualification dates and Annual General Meeting (AGM) dates.
Corporate Actions that happened last week
Femi Otedola divests from Forte Oil Â
On Monday, Forte Oil Plc announced that Femi Otedola, its principal shareholder, would be selling his entire stake (amounting to 75% of the company’s issued shares) in the major petroleum marketer.
The move according to a notice sent to the NSE, was to enable Otedola to explore and maximize opportunities in refining and petrochemicals. The transaction is expected to be concluded in the first quarter of 2019.
Continental Reinsurance PlcÂ
Continental Reinsurance announced the appointment of Ms Patricia Ifewulu as Acting Company Secretary. Ifewulu replaces Mrs Abimbola Falana who will be retiring effective December 31st, 2018.
The company also announced the results of the court-ordered meeting held on the 20th of December. The meeting was for the purpose of the minority shareholders of the company, considering the proposal by CRe African Investments Limited to acquire all the outstanding and issued shares of CRe for cash or shares.
92.66% of the votes cast were in favour of the resolution approving the scheme. Furthermore, the scheme consideration was revised upwards from N2.04 (two Naira four kobo) to N2.10 (two Naira ten kobo) per share.
The company stated that it would inform the NSE as events occur. From all indications, it would lead to a delisting of the firm from the Nigerian Stock Exchange.
Diamond Bank
Diamond Bank announced the appointment of Dele Babade, as Acting Chairman. Babade, who represents the Carlyle group on the board, replaces Oluseyi Bickersteth who resigned alongside three non-executive directors.
GNI delists
Great Insurance Plc has obtained the approval of the Nigerian Stock Exchange to delist. The move, however, is on the condition of the firm opening an escrow account in its registrar’s name and providing evidence that shareholders who have accepted to exit have been paid.
The company in the notice also stated that its delisting was primarily due to little or no trading activity by retail investors, and the stock trading below its intrinsic value. Delisting would also save the firm the cost of listing obligations.
Seplat commences a closed period
Seplat Petroleum this week, commenced a closed period in the company’s shares from Monday, 31st December 2018 to end on Thursday, 28th February 2019. During this time, management and board members with access to sensitive information are not allowed to trade their shares.
The last date for the closing period could be an indication that the firm would release its audited FY 2018 results in the first week of March.
A multi-billion loss
African Alliance Insurance Plc released its results for the 2017 financial year barely a few days to the end of its current financial year. The company had, in several notices sent to the Nigerian Stock Exchange, attributed the delay in submission of the results to the late submission of results from subsidiaries overseas.
The insurance firm recorded a loss after tax of N6.2 billion, as against a profit after tax of N2.4 billion recorded in the 2016 financial year.
John Holt PlcÂ
John Holt Plc released its results for the nine months ended September 30, 2018. Revenue increased from N2.2 billion in 2017 to N2.6 billion in 2018. The company made a profit before tax of N160 million, as against a loss before tax of N223 million recorded in 2017. Profit after tax stood at N165 million, as against a loss after tax of N728 million made in 2017.
PZ Cussons Nigeria
PZ Cussons Nigeria released its results for the half year ended November 2018. Turnover dropped from N41.1 billion in 2017 to N35 billion in 2018. Profit before tax jumped from N868 million in 2017 to N1.3 billion in 2018. Profit after tax also rose from N589 million in 2017 to N1.2 billion in 2018.
This could be an indication that the company may be on a rebound following poor FY 2017/2018 and Q1 2018/2019 results.
Vitafoam PlcÂ
Vitafoam Nigeria Plc released its results for the financial year ended September 30, 2018. Revenue increased from N17.6 billion in 2017 to N19.5 billion in 2018.
Profit after tax stood at N601 million, compared to a loss after tax of N127 million recorded in the comparative period of 2017.
While no dividend announcements have been made yet, the company has a long history of consistent dividend payment, despite recording losses in the last few years
Let us note that Forte Oil currently has a structure that makes Her suffer bigger share( 51%) of loss from Amperion Power ( Her Child) and smaller share (29%) of profit from Geregu ( Her Grandchild). I used data from Q32018 FO financial Statements to determine loss recorded by Amperion as NGN 3.0bn while profit recorded by Geregu as NGN11.789bn. As at 30/09/2018, Equity attributable to FO Equity Holders was NGN18.7bn while non controlling interest was NGN47.1bn