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, payments of dividends, closing of shareholders’ registers, announcing qualification dates and Annual General Meeting (AGM) dates.
Corporate actions that took place last week
A Yhello landing: In perhaps the biggest event so far this year on the exchange, MTN Nigeria was listed on the Premium Board of the Nigerian Stock Exchange, last week. 20.3 billion shares valued at N90 per share, were listed.
The company has gained 20% since listing, amidst massive demand.
MTN Nigeria also announced that it had obtained a N200 billion loan from a consortium of local banks. The loan is denominated in naira, and with a two year moratorium.
International Breweries announced the appointment of Olutoyin Odulate as an Independent Non Executive Director. Odulate is the Founder and CEO of Olori Beauty Enterprise Limited.
Medview Airlines, in a notice sent in last week, announced that it was one of three carriers chosen by the Federal Government for Hajj operations.
CEO of the firm, Munir Bankole also disclosed that some of the airline’s aircraft would be back from scheduled maintenance soon.
Greif Nigeria Plc (formerly known as Van Leer) announced a delay in the release of its Q2 2019 results. Apparently, a few of the company’s key staff had jumped ship, since the company announced a suspension of operations.
The firm however expects to file its results on or before the 14th of June 2019.
No laws broken: Chams Group sent in a notice clarifying issues around the payment of a three kobo dividend. The dividend in question was paid from Chams Plc’s retained earnings of N385 million. Chams Group however has negative retained earnings of N1.5 billion.
The company also defended its action, relying on Section 380 A of the Corporate and Allied Matters Act (CAMA). In essence, a company can pay dividends from revenue reserves, realised profit on a fixed asset sold or profits arising from the use of the company’s property.
An Exit: On Monday last week, Newrest ASL shares were delisted from the Nigerian Stock Exchange.
Going Going: First Aluminum Plc shares were placed on suspension last week in preparation of its voluntary delisting.
Markdowns: Nestle Nigeria Plc, Regency Alliance Insurance, Eterna Plc and Okomu Oil Nigeria Plc were marked down last week.
Corporate Actions taking place next week
AIICO Insurance will be holding its Annual General Meeting (AGM) on Monday, the 20th of May, 2019.
Caverton Offshore Support Group and Consolidated Hallmark Insurance Plc will hold their AGMs on the 21st of May, 2019.
NCR Nigeria Plc will hold its AGM on the 22nd of May, while Pharmadeko, GSK Consumer Nigeria and Berger Paints Plc will hold their AGMs on the 23rd of May, 2019.