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MTN may rake in $600 million from Jumia’s planned listing

Jumia plans to list on the floor of the New York Stock Exchange.

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Mastercard buys Jumia shares, Jumia get $56 million from Mastercard, Jumia NYSE IPO listing, MTN, Jumia Investors, Q3 ’19: Jumia grows revenue by 52%, Like Gabon, Congo, Jumia shuts operations in Cameroon, Jumia: Platform that holds the Ace in Africa 

MTN Group Limited may rake in nothing less than $600 million as Africa’s largest online retail, Jumia is set to go public. The telco is planning to raise as much as $600 million from selling its shares through the Initial Public Offering (IPO).

Jumia is planning an IPO in New York this year that could value the business at about $1.5 billion.

MTN’s shares in Jumia

MTN Group currently holds 40% stakes in Jumia which is arguably Africa’s biggest online retailer. The company is present in about 14 African countries, including Nigeria where it is in competition with Konga and other smaller e-commerce operators.

With its capital base of $1 billion, Jumia is also one of the most valued e-commerce companies on the African continent. According to Bloomberg, Jumia’s revenue has grown steadily since 2012 when it was established.

While MTN and Jumia declined to comment on the matter, Nairametrics had reported that MTN Nigeria’s parent company was considering selling off its equities in Jumia.

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Why would MTN Group even think about disposing of its shares in Jumia?

According to a report, the telco is heavily indebted and in constant need of money to offset said debts. The company’s debt volume stood at $4.8 billion as at June 2018.

The company operates in 21 countries across Europe, the Middle East, and Africa. Nigeria is one of its strongest markets, with MTN Telecommunications Nigeria Limited being the biggest telecoms operator in the country.

More so, the company is yet to carry out its highly anticipated initial public offering on the floor of the Nigerian Stock Exchange (NSE).

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Will Jumia still be fine?

A U.S. IPO would catapult Jumia into the global spotlight after seven years of rapid growth across Africa, where it provides an Amazon.com-like service and has platforms in 13 countries.

Jumia is a rare so-called unicorn in Africa — a private company valued at more than $1 billion — being one of only three, according to research firm CB Insights.

With the likes of Goldman Sachs Group Inc., Millicom International Cellular SA and Orange SA as shareholders, one thing can be guaranteed, Jumia will still be very much OKAY.

It is pertinent to note that Jumia was established six years ago in Lagos Nigeria, by two French entrepreneurs – Jeremy Hodara and Sacha Poignonnec. The company was in 2012 to take advantage of rising internet use in the world’s least connected continent, as well as a lack of availability of items such as designer watches and sunglasses in Lagos stores.

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Famuyiwa Damilare is a trained journalist. He holds a Higher National Diploma (HND) in Mass Communication at the prestigious Nigerian Institute of Journalism (NIJ). Damilare is an innovative and transformational leader with broad-based expertise in journalism and media practice at large. He has explored his proven ability in the areas of reporting, curating and generating contents, creatively establishing social media engagements, and mobile editing of videos. It is safe to say he’s a multimedia journalist.

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Business

COVID-19: CACOVID spent N43.27 billion to support 3 key priorities – CBN

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CACOVID devotes N23 billion to feed Nigerians

The Central Bank of Nigeria (CBN) has revealed that the Coalition Alliance Against COVID-19 (CACOVID) has so far incurred an expenditure of N43.27billion on the acquisition of, not only medical equipment and supplies but also food palliatives for vulnerable Nigerians.

The recent press release noted that the funds raised by CACOVID was used to support 3 key priorities – Medical facilities and equipment, food relief programs and communications plans.

The breakdown of the expenditure in the aforementioned areas are:

  • Medical Facilities and equipment: In collaboration with other stakeholders, CACOVID developed 39 fully equipped isolation centers across the 36 States of the Country including the Federal Capital Territory (FCT). The sum of N4.19billion was spent in Building Isolation Centers. In addition, medical equipment such as PCR test kits for suspected cases of COVID-19 were procured along with other required medical items at a cost of N9.02billion.
  • Food relief programs: As a way of cushioning the impact of the lockdown on vulnerable citizens, CACOVID provided palliatives in the form of essential food items to 1.7million households, which is equivalent to supporting 8 million Nigerians. A total of N28.76billion was spent procuring these food supplies.
  • Communication plans: CACOVID also worked to improve awareness in rural communities on the COVID-19 virus, and the measures community health workers and other members of society should take when someone in the community is suspected of having symptoms similar to that of COVID-19. In lieu of this, expenses were incurred on Print, TV, radio, and social media as part of CACOVID communication plans.

Why this matters

The recent disclosure is in line with the principle of accountability and transparency, as the organization seeks to lay bare facts regarding expenditure incurred so far; thereby, nipping in the bud, suspicions and unfounded rumor.

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What you should know

Due to the sudden global health challenge (COVID-19), which wreaked havoc on most economies of the world, coupled with declining oil prices and declined government revenue; the Bankers Committee, comprising the Central Bank of Nigeria and the Deposit Money Banks, as well as key stakeholders in the private sector came together to set up an alliance in March 2020, known as the Coalition Alliance Against COVID-19 (CACOVID).

The ultimate objective is working with the government to provide support in areas that would result in improved health and welfare for vulnerable Nigerians.

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Companies

PZ Cusson announces retirement of Chairman, Kola Jamodu

PZ has announced the retirement Chief Kola Jamodu as Non-Executive Director and Chairman of the Board of the company.

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Kola Jamodu

The Board of Directors of PZ Cussons Nigeria Plc has announced the retirement of Chief Kola Jamodu as Non-Executive Director and Chairman of the Board of the company.

This disclosure was made in a notification signed by the Company’s Secretary, Jacqueline Ezeokwelume, and sent to the floor of the Nigerian Stock Exchange.

According to the notification issued by Mrs. Ezeokwelume, Chief Kola Jamodu will retire as a Non-Executive Director and Chairman of the Board effective 11 December 2020 to enable him to pursue other personal endeavours.

What you should know

Chief Jamodu joined PZ Cussons Group in 1974 and served in Executive positions for 24 years rising to the position of Chief Executive Officer of the Company, a position he held until he retired in 1999.

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He thereafter continued as a Non-Executive Chairman of the Board until 2001 when he was appointed as the Honourable Minister of Industry of the Federal Republic of Nigeria, a position he held until 2003.

He was reappointed as the Chairman of the Board of PZ Cussons Nigeria Plc in November 2014.

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Appointments

Abbey Mortgage Bank announces appointment of 6 Directors

The Central Bank of Nigeria has approved the appointment of 6 Directors of Abbey Mortgage Bank.

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Abbey Mortgage Bank announce the appointment of substantive Managing Director, and 5 Directors.

Abbey Mortgage Bank has announced the appointment of 6 Directors, including Mr. Madu Hamman as the substantive Managing Director.

The disclosure is contained in a notification, signed by the Bank’s Secretary, Geoff Amaghereon Esq. and sent to the Nigerian Stock Exchange market today, as seen by Nairametrics.

What you should know

Five (5) other Directors were appointed by the CBN – 2 Executive and 3 Non-Executive Directors.

The names and portfolios of the Directors are; Mr. Mobolaji Adewumi – Executive Director; Mr. Oladipupo Ayodele Adeoye – Executive Director; Mr. Nonso Okpala – Non-Executive Director; Professor Marius N. Umego – Non-Executive Director; and Brigadier-General John Obasa (rtd) – Non-Executive Director.

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The notice also mentioned that all appointments have been approved by the Central Bank of Nigeria.

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