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 rundown of corporate actions that took place last week and those expected this week.
Corporate Actions that held this week
Omoluabi Mortgage Bank Plc and Veritas Kapital Assurance Plc released their results this week. Omoluabi released its audited full year 2018 and first quarter 2019 results. Veritas released its audited results for the 2018 financial year.
Omoluabi had a decline in its full year 2018 and first quarter 2019 profit.
Veritas (formerly known as Unity Kapital) incurred a loss after tax for the second year running. The N695 million loss, was largely due to a 45% spike in management expenses to N2.9 billion in 2018.
Annual General Meetings (AGMS) held
AIICO Insurance, Caverton Offshore Support Group Plc, Consolidated Hallmark Insurance Plc, NCR Nigeria Plc, Pharmadeko Plc , Glaxosmithkline Consumer Nigeria, and Berger Paint Nigeria Plc all held their Annual General Meetings.
Cadbury Nigeria Plc’s share price was marked down by N0.25 this week. Ex dividend price was N10.25.
UAC of Nigeria Plc’s share price was marked down by N0.64 this week. Ex dividend price was N6.61.
Another Yhello Headache
MTN Nigeria, in a notice sent yesterday, disclosed that it had received a letter from the Economic and Financial Crimes Commission (EFCC) requesting documentation pertaining to its listing on the Nigerian Stock Exchange (NSE). The company however denied any form of wrongdoing. There had been media reports of a raid by the agency on the company’s head office located in ikoyi.
The move adds to the burden of an ongoing court case against the office of the Attorney General of the Federation (AGF). The OAGF has accused MTN Nigeria of tax evasion— a charge it has denied.
A New ED
Conoil Plc has appointed Ismail Salam as acting Executive Director (ED) Finance.
Corporate Actions taking place next week
Annual General Meetings
Courteville Business Solutions Plc, Nestle Nigeria Plc, Portland Paints and Products Plc, May & Baker Plc, and Livestock Feeds Plc will all be holding their Annual General Meetings (AGMs) this week.
Courteville Business Solutions Plc, and Nestle Nigeria will be holding their AGMS on the 28th of May, 2019.
Portland Paints and Products Plc, and May & Baker Plc will hold theirs on the 30th of May, 2019.
Livestock Feeds Plc will hold its AGM on the 31st of May, 2019.
Facts Behind the Figures
Ikeja Hotel Plc will hold a Facts Behind The Figures session at the Nigerian Stock Exchange on Tuesday May, 28, 2019.
Emzor Pharmaceuticals accesses capital markets for the first time, lists N13.7bn Bond on NGX
Emzor Pharmaceutical Industries Limited, has listed its N13.7bn 5-Years Series 1 Bond exclusively on NGX.
Wholly-owned, indigenous pharmaceutical manufacturing group, Emzor Pharmaceutical Industries Limited, has listed its N13.7 billion 5-Years Series 1 Bond exclusively on the Nigerian Stock Exchange Limited “NGX” Platform.
Information contained in a statement published on the NGX website revealed that the N13.7Bn 5-Years Series 1 Senior Unsecured Fixed Rate Bond due by 2026, under the company’s N50 billion Debt Issuance Programme, is the first public instrument listed by the Nigerian pharmaceutical group.
Why this matters
In line with the objective of the NGX Group, Emzor capitalized on the robust size of the Nigerian Capital Market to bridge funding gaps and restructure its existing debt profile, through its N50 billion Debt Issuance Programme.
Details of the transaction revealed that Emzor was able to access the domestic debt capital markets for the first time and raise 5 years of financing in local currency using a corporate bond, with the issuance of its N13.73 billion 5-Year 10% Series 1 Senior Unsecured Fixed Rate Bond.
The proceeds from the bond initiated by Emzor Pharma Funding SPV Plc, a special purpose vehicle set up to finance Emzor’s funding requirements, will be used to finance the purchase of notes and other debt securities issued by Emzor, in accordance with the terms of the Master Notes Purchase Agreement (the “MNPA”).
The N13.73 billion Series 1 Unsecured Bonds accorded with an ‘A-’ credit rating by Global Credit Rating Co., was undersubscribed by 8.47% as the intended capital was pegged at N15 billion.
What you should know
- Emzor Pharmaceutical Industries Limited is a renowned manufacturer of quality pharmaceutical products and medical consumables. The company has grown its product portfolio from a modest four products in 1987, to more than 120 different products in recent times.
- The company has a wide range of products in the analgesic, anti-malaria, vitamin/haematinics/multivitamin supplement, anti-helmintic, antibiotics and therapeutic categories.
Exchange rate gains at NAFEX window despite decline in forex supply
Nigeria’s exchange rate appreciated against the US dollar on Wednesday to close at N410/$1.
Wednesday, 21st April 2021: The exchange rate between the naira and the US dollar closed at N410 to a dollar at the Importers and Exporters window, where forex is traded officially.
Nigeria’s exchange rate appreciated against the US dollar on Wednesday to close at N410/$1. This represents a 0.16% gain compared to N410.67/$1 recorded on Tuesday, 20th April 2021.
The naira remained stable at the parallel market, closing at N486/$1 on Wednesday, 21st April 2021 after it depreciated by 0.83% in the previous trading session.
Trading at the official NAFEX window
The naira appreciated against the US dollar at the Investors and Exporters window on Wednesday to close at N410/$1. This represents a 67 kobo gain when compared to N410.67/$1 recorded on Tuesday, 20th April 2021.
- The opening indicative rate closed at N409.54 to a dollar on Wednesday. This is 4 kobo depreciation, compared to N409.5/$1 recorded on Tuesday.
- Also, an exchange rate of N422 to a dollar was the highest rate recorded during intra-day trading before it settled at N410/$1. It also sold for as low as N394/$1 during intra-day trading.
- Forex turnover at the Investor and Exporters (I&E) window dipped by 59.7% on Wednesday, 21st April 2021.
- Data tracked by Nairametrics from FMDQ showed that forex turnover decreased from $99.49 million recorded on Tuesday, 20th April 2021, to $40.13 million on Wednesday.
Bitcoin dipped by 3.96% to close at $54,267.91 on Wednesday, 21st April 2021.
- The world’s most sought-after digital asset lost $2,235.28 in Wednesday’s trading session as the total Cryptocurrency market capitalisation dipped by 2.98% to close at $1.97 trillion.
- Since the directive by the CBN to place a ban on crypto transactions in the country earlier in the year, usage of Bitcoin’s peer-to-peer trading in Nigeria has surged by 27%.
- Notably, in the past 85 days, Nigerians have moved about $103 million worth of Bitcoins on just Paxful and LocalBitcoins channels alone.
Crude oil price slumps
The price of Brent crude oil dipped by 1.88% to close at $65.32 on Wednesday, 21st April 2021.
- The decline in the price of crude was attributed to concerns that surging COVID-19 cases in India will drive down fuel demand in the world’s third-biggest oil importer.
- Meanwhile, data from the American Petroleum Institute revealed that U.S. crude oil stocks rose by 436,000 barrels in the week ended 16th April 2021.
- However, Libya’s National Oil Corporation declared force majeure on exports from the port of Hariga due to lack of maintenance funds, consequently shutting down several fields and bringing the country’s production to less than 1 million barrels per day.
- Brent Crude closed at $65.32 (-1.88%), WTI Crude closed at $61.17 indicating a 0.29% decline, while natural gas also grew by 0.26% to close at $2.699.
Nigeria’s external reserve declined by 0.1% on Tuesday, 20th April 2021 to stand at $35.18 billion.
- According to data obtained from the Central Bank of Nigeria (CBN), Nigeria’s external reserve dipped further on Wednesday from $35.22 billion recorded as of 19th April 2021 to $35.18 billion on Tuesday.
- The second consecutive decline comes on the back of 19 successive growth recorded in Nigeria’s external reserve position.
- Meanwhile, the Central Bank of Nigeria has moved to improve dollar inflow into the country by assuring exporters that they will continue to have unrestrained access to their export proceeds.
- Governor Emefiele however, tasked exporters on repatriation of their export proceeds to improve foreign exchange inflows into Nigeria.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- VFD Group set to raise additional capital of N9.01 billion through rights issue and private placement.
- GT Bank records a 9% dip in profit to N45.55 billion in Q1 2021.
- Secure Electronic Technology Plc records a 121% surge in Profit after tax in Q1 2021.
- Lafarge Africa Plc notifies stakeholders of 62nd Annual General Meeting.
- GlaxoSmithKline (GSK) announces Annual General Meeting.