After First Aluminium Plc first hinted, last September, that it is considering voluntarily delisting its shares from the Nigerian Stock Exchange (NSE), it has now given reasons why.
According to a statement issued to the NSE and investing public at large, First Aluminium Plc explained that the decision to delist is not far from the fact that its shareholders are not benefiting from the company’s continued listing on the NSE, even as they are not getting exit opportunities either.
More so, First Aluminium lamented that its shares have continued to trade at a significant discount to the intrinsic value, stressing that over the last seven years, there has been little or no trading activity on the shares held by the minority shareholders.
According to the company:
“The share price was stuck at 50 kobo for about six years between June 2011 and June 2017, and thereafter experienced further diminution, both in share price and trading volumes. Over the last 18 months daily average volume ranged between 2,815 to roughly 2,918 units during the period July 2017 to December 2018. Shareholders are not benefiting from the continued listing as they are not getting exit opportunities and their investments have been locked up, thereby finding it difficult to dispose of their shareholding. Neither the company nor its shareholders have benefitted as the company’s shares continue to trade at a significant discount to the intrinsic value.”
Furthermore, rationalisation of operational expenses to support the company’s business and to meet the needs of various stakeholders, as well as the attendant costs required to comply with listing requirements such as filing fees, penalties/sanctions, are not commensurate with the benefits the company is getting from being on the NSE.
Also, the increasingly competitive environment and the struggle to defend market share have resulted in market pressure to reduce price. This might significantly impact operating margin, the company said.
How the company will leverage on the delisting
The delisting will avail the company the opportunity to carry out an imminent corporate restructuring exercise to take advantage of emerging opportunities. It may consider re-listing the company in the future if the market conditions become favourable.
“The voluntary delisting will not occasion the loss of business opportunities as there are similar unlisted aluminium companies who are commanding a significant share of the aluminium market. Also, minority shareholders will not lose their shares because of the voluntary delisting and such shareholders may retain their membership in the unlisted company. However, through the Voluntary Delisting process, the minority shareholders – who do not wish to be members of an unlisted company – will have an opportunity to exit the Company, in accordance with the rules of the Nigerian Stock Exchange.”
The majority shareholders are the promoters of the transaction and offer other shareholders the opportunity to either remain shareholders of the unlisted company or accept a consideration for their shares which the majority shareholders are willing to purchase.
Effect of the delisting
If and when First Aluminium Nigeria Plc eventually delists from the NSE, its shares will no longer be available for trading on the Nigerian bourse. It is envisaged that the delisted First Aluminium will continue its operations as an unlisted public company.
Recall that Nairametrics first reported the company’s impending delisting in September last year, after the company’s Management and Board first brought it up during the company’s 2018 AGM.
About First Aluminium Nigeria Plc
First Aluminium Nigeria Plc is one of the first Nigerian companies to be listed on the Nigerian Stock Exchange. It was listed in the daily official list of the NSE in 1992.
ALUCON Holdings S.A. holds roughly 75.48% of the current shareholding with minority
shareholders accounting for about 24.52%.
Nigeria, now 2nd most corrupt country in West Africa – Transparency International
Nigeria is now the second most corrupt country in W/Africa with Guinea-Bissau the only country more corrupt than Nigeria in the region.
The Corruption Perception Index (CPI) 2020 report published by Transparency International indicates that Nigeria occupies the 149th position out of the 180 countries surveyed as well scored 25 out of 100 points.
With the current ranking, Nigeria is now the second most corrupt country in West Africa with Guinea-Bissau the only country more corrupt than Nigeria in the sub-region.
It can be recalled that in the 2019 report, Nigeria was ranked 146th out of the 180 countries surveyed, scoring 26 points out of 100 points.
What you should know
- The Corruption Perception Index (CPI) is an annual survey report published by Berlin-based Transparency International since 1995 which ranks countries by their perceived levels of public sector corruption, as determined by expert assessments and opinion surveys.
- The CPI scales zero (0) to 100, zero means “Highly Corrupt,” while 100 stands for “Very Clean”.
- Nigeria’s ranking on the corruption perception index has continued to drop in the last four years.
- With the current ranking, Nigeria is two steps worse off than she was in 2018 when she scored 27 points to place 144th out of 180 countries.
- Only 12 countries are perceived to be more corrupt than Nigeria in the whole of Africa. The countries are the Democratic Republic of Congo, Libya, Equatorial Guinea, Sudan, Somalia, Zimbabwe, Chad, Eritrea, Burundi, Congo, Guinea Bissau, and South Sudan.
- Somalia and South Sudan remain the most corrupt nations on earth, according to the CPI 2020 ranking.
- Denmark, New Zealand, Finland, Singapore, Germany, Sweden Switzerland, Norway, The Netherlands and Luxembourg are the least corrupt countries in the world.
Significant progress made in China-Africa ties within cooperation framework – AUC Chairperson
AUC chairperson has disclosed that significant, sustained progress is being made in China-Africa ties within cooperation framework.
The African Union Commission (AUC) Chairperson, Moussa Faki Mahamat, has said that “significant and sustained” progress has been made in China-Africa ties.
Mahamat asserted this in an analysis of his first-term as the AU Commission chairmanship.
He reiterated the AU Commission’s strong commitment to upholding multilateralism and supporting international partners in halting the trend of unilateralism.
He argued that “International cooperation and solidarity are irreplaceable.”
Mahamat, in his analysis, reiterated that global challenges, national egoism, the decline of multilateralism, the ongoing COVID-19 pandemic, and dwindling resources “have hampered our forward march” during the past four years.
The AU Commissioner for Social Affairs Amira Elfadil recently also hailed China as a strategic partner of Africa.
What they are saying
- Mahamat submitted that: “With China, significant and sustained progress has been made within the framework of the Forum on China-Africa Cooperation (FOCAC).
- “Africa stands with those who fight unilateralism and strongly advocate for a multilateralism of respect, equality and mutual benefit.”
- Amira Elfadil noted that: “We are looking for those who are serious about the future of this continent, and when we say strategic partners and mention strategic partnerships, China comes first and we appreciate this partnership very much.”
What you should know
- The African Union (AU) is a continental body consisting of the 55 member states that make up the countries of the African Continent. It was officially launched in 2002 as a successor to the Organisation of African Unity (OAU, 1963-1999).
- The African Union Commission acts as the executive/administrative branch or secretariat of the AU and consists of a number of Commissioners dealing with different areas of policy.
President Buhari signs COVID-19 Health Protection Regulations 2021
President Buhari has signed the COVID-19 Health Protection Regulations 2021 policy.
President Muhammadu Buhari has signed the COVID-19 Health Protection Regulations 2021 policy, citing powers conferred to the Presidency, by Section 4 of the Quarantine Act, Cap. Q2 Laws of the Federation of Nigeria 2010, “…and in consideration of the urgent need to protect the health and wellbeing of Nigerians in the face of the widespread and rising numbers of COVID-19 cases in Nigeria.”
The signing of the regulations was disclosed in a statement by the FG on Wednesday evening.
The law, which comes in 5 parts, includes; Part 1- Restrictions on Gatherings; Part 2- Operations of Public Places; Part 3- Mandatory Compliance with Treatment Protocols; Part 4 – Offences and Penalties; Part 5 – Enforcement and Application; and Part 6 -Interpretation and Citation.
Restrictions on Gatherings
The regulations require that physical distance of at least two metres shall be maintained at all times between persons. No gathering of more than 50 persons shall hold in an enclosed space, except for religious purposes, in which case the gathering shall not exceed 50% capacity of the space.
“The provisions of these Regulations may be varied by Guidelines and Protocols as may be issued, from time to time, by the Presidential Task Force (PTF) on Covid-19 on the recommendation of the Nigeria Centre for Disease Control (NCDC)”
Operations of Public Places
- No person shall be allowed within the premises of a market, mall, supermarket, shop, restaurant, hotel, event centre, garden, leisure park, recreation centre, motor park, fitness centre or any other similar establishment except the person is using a facemask and has washed hands.
- Managers of hostels, boarding houses, nursing homes, correctional centres, remand homes, holding cells, military detention facilities, and such centres for care and custody of persons, shall ensure compliance with the provisions of these regulations.
- Managers of such facilities shall ensure that suspected cases of Covid-19 are promptly and appropriately separated from others and are reported to medical officers of the State Ministry of Health for necessary action.
Mandatory Compliance with Treatment Protocols
- Persons confirmed to have tested positive to COVID-19 by an NCDC accredited laboratory, may not refuse isolation and or admission to a designated health establishment for management of the disease.
- All public secondary and tertiary health facilities shall designate a space or holding bay for the initial triage or assessment of suspected persons with COVID-19 in line with the approved protocol for case management.
- All public secondary and tertiary health facilities shall establish sample collection centres, where test samples from suspected cases can be collected and transmitted to an accredited testing laboratory in the State.
Offences and Penalties
- Any person who contravenes the provisions of these regulations commits an offence.
- Any person who, without reasonable cause, contravenes a direction given under Parts 1 and 2 of these regulations commits an offence.
- An offence under these regulations is punishable, on summary conviction, by a fine or a term of six months imprisonment or both in accordance with Section 5 of the Quarantine Act.
Enforcement and Application
- Personnel of the Nigeria Police Force, the Nigeria Security and Civil Defence Corps, the Federal Road Safety Corps, the Nigeria Immigration Service, the Federal Airport Authority of Nigeria, and other relevant Local Government, State and Federal Government agencies are hereby directed to enforce the provisions of these regulations.
- Any officer of the enforcement agencies who fails, neglects, or refuses to enforce the provisions of these regulations shall be subject to disciplinary action
- State Governors may issue regulations on further steps as may be considered necessary.
On interpretations of the law, the FG said, “Offence” means any act, which may constitute a violation of the provisions of these regulations, while “Enforcement Agency” means any law enforcement or security agency vested with the statutory power to investigate and prosecute. The law also stated that the regulations would go into effect immediately and remain in effect until otherwise determined.
What you should know
- Nairametrics reported this week that the Federal Government had announced the extension of the guidelines of phase 3 of the eased lockdown by one month with effect from Tuesday, January 26, 2021.