Corporate actions are decisions taken by companies’ boards of directors or management teams, that could have 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
Mixed signals
Continental Reinsurance gave mixed signals pertaining to its delisting (or otherwise) from the Nigerian Stock Exchange (NSE). The company, in a notice to the NSE, debunked a report by the Punch newspapers denying delisting plans, saying that its MD was misquoted.
The report (which is still on the Punch website, as at the time of writing this) cclearly quotes the MD of the firm as saying:
“We need all the capital we can get for this restructuring. So, it is not even a wise decision to delist. People saying that we plan to delist are spreading rumours.
We have no plans to delist or to do a change of name for the company.”
While the firm has not categorically stated that it is delisting, the NSE, in a notice released last week, stated that it had removed the firm from its Corporate Governance Index
following the company’s application to The Exchange to delist from the Daily Official List of The Exchange.
The firm may have decided to stay silent on the delisting, in order to rile the minority shareholders that opposed its planned restructuring.
The NSE also disclosed this week that full suspension had been placed on trading in the company’s shares effective December 31st 2018, following a request by its stockbroker, Chapel Hill Denham Securities Limited.
Resort Savings and Loans resumes trading
On the flip side, Resort Savings and Loans Plc has resumed trading following the lifting of a full suspension placed on the firm for failing to submit its results as at when due.
Earlier in the week, the company had continued its release of a backlog of results, the most recent being for the 3rd quarter ended September 30, 2018.
The lifting of the suspension also brings the firm closer to a planned capital injection by private equity firm, Milost Global, whose previous transactions on the NSE have terminated abruptly.
Two others
The NSE also removed NEM Insurance and Diamond Bank Plc from its corporate governance index.
African Alliance’s losses mount
African Alliance Insurance Plc also released several overdue results, the most recent being for the nine months ended September 2018. The firm recorded a loss after tax of N4.7 billion, an indication that it could record a full year loss, for the second year running.
MRS Oil relocates head office
In a notice sent to the NSE last week, MRS Oil Plc disclosed that its board of directors has approved the relocation of the company’s head office from No. 8, Macarthy Street, Onikan, Lagos to No. 2, Tin Can Island, Apapa, Lagos.
Notore makes board changes
Notore Chemical Industries Plc announced several board changes. Chief Odiloyi Lolomari retired from the board after serving for 11 years. Bernard Longe, and Geoffrey Diedeu resigned from the board.
The company also announced replacements: Ovie Ukiri, Olusoji Adekunle Emiola, and Tseyi Louis Hammond respectively.
A key board meeting
Guaranty Trust Bank stated that its board of directors would be meeting on the 30th of January, 2019 to consider its full year 2018 results. This could be an indication that its results would be released earlier than the prior year.
The bank will commence a closed trading in its shares. During this period, insiders with access to sensitive information cannot trade their shares.
