Corporate Actions: N184 billion and Double Rs

Corporate actions are decisions taken by companies’ boards of directors or management teams, that could have an 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 and those expected this week. 

Corporate actions that held last week 

Sliding profit  

Seplat Petroleum Development Company (commonly known as Seplat) released its results for the 2018 financial year. Profit after tax fell sharply due to the absence of a tax credit.  

 The company paid a final dividend of $0.05 per share, and held an investor call the same day the result was released.  

N184 billion 

Guaranty Trust Bank released its audited results for the 2018 financial year. The tier one lender made a profit after tax of N184 billion and will be paying a final dividend of N2.45 per share. 

Stanbic IBTC Holdings  

Stanbic IBTC Holdings released its full year 2018 results this week. The group made a profit after tax of N74.4 billion, up 54% from the prior year. A final dividend of N1.50 was declared, bringing total dividend pay out for 2018 to N2.50.  

A conference call was held last Friday where management discussed several issues, including how the bank intends to grow its loan book.  

N43 billion

Nestle Nigeria Plc released its full year 2018 results. Profit after tax jumped by 27.5% to N43 billion in 2018. The company declared a final dividend of N38.50

Fifty kobo 

GSK Consumer Nigeria released its FY 2018 results. The company has declared a final dividend of N0.50 per share, but has not uploaded the results to the NSE website as at the time of writing this.  

Thomas Red

Thomas Wyatt released a backlog of results, the most recent being the nine months ended December, 2018. The firm made a loss after tax of N36.6 million.

100% 

Lafarge Africa released a breakdown of its right issue, which was 100% subscribed.  

Continental Re provides update 

Continental Reinsurance has provided an update on its scheme of arrangement. The company expects to receive final approval from the SEC in the coming weeks and will thereafter approach the Federal High Court for approval of the scheme.  

Under the scheme, CRE Africa will acquire all issued shares of CRE Nigeria for cash or shares.  

Green Light 

Shareholders of Access Bank Plc and Diamond Bank Plc gave approval for the merger of the two lenders. They did so at Extraordinary General Meetings held on the 5th of March, 2019.  

A new CFO  

UAC of Nigeria Plc has announced the appointment of Ibikunle Oriola as its new Chief Financial Officer (CFO). Oriola has over 17 years experience, and has worked with several firms including Transcorp Plc, ARM and Kakawa Discount House.  

A revival plan  

Multi–trex Integrated Foods Plc gave an update of its discussions with the Asset Management Company of Nigeria (AMCON), as well as revival of its operations.  

NEM Insurance Plc 

NEM Insurance Plc held a board meeting on the 5th of March, 2018, to consider the company’s full year audited 2018 financial statements.  

UPDC Plc 

The board of UACN Property Development Company Plc met last week, to consider the company’s 2018 audited results.  

Prestige Assurance Plc 

Prestige Assurance Plc held a board meeting on March 5, 2019 to consider the company’s full year 2018 audited financial statements and a proposed dividend payment.  

11 Plc 

The board of 11 Plc ( formerly known as Mobil Oil Nigeria Plc) met on March 7, 2019 to consider the company’s 2018 audited financial statements. The statements were approved, and will be released on March 22, 2019.  

Late filings 

Law Union and Rock Insurance, Universal Insurance, Royal Exchange Plc and Cornerstone Insurance all sent notices of late filings of their 2018 audited financial statements.  

They blamed the delays on the need to adopt IFRS 9 in the preparation of the statements. 

Double Rs 

STACO Insurance Plc is considering reconstruction of the company’s share capital and raising additional capital. The company’s board will hold a meeting on Wednesday March 20, to discuss this. 

Refreshed 

African Alliance Insurance Plc last Friday unveiled a new logo. The move is part of the company’s new corporate strategy and direction.

Corporate Actions taking place next week  

AIICO Insurance Plc 

AIICO Insurance Plc will be holding a board meeting on March 12, 2019 to consider the company’s full year 2018 results and a possible dividend payment. Hence its having a place on this week’s watchlist.  

C & I Leasing Plc 

C & I Leasing Plc will hold a board meeting on March 14, 2019. The board will consider the company’s full year 2018 audited results, and a CBN supervisory letter and examination report.  

Custodian Investment Plc 

Custodian Investment Plc will be holding a board meeting on March 14, 2019 to consider the company’s audited financial statements and a proposal for dividends.  

Transcorp Hotels and Transcorp Plc 

The two firms they will be holding their AGMs on March 15, 2019.