Business News
Japan’s Ohara Pharmaceutical takes over 20% stake in Fidson Healthcare
@FidsonHealthPLC has entered into a strategic partnership with Japan’s Ohara Pharmaceutical that will see the latter’s stake in the Nigerian company increase.
Pharmaceutical firm, Fidson Healthcare Plc, has entered into a strategic partnership with Japan’s Ohara Pharmaceutical that will see the latter’s stake in the Nigerian company increase.
The deal involves a right issue which grew Ohara’s shares in Fidson Healthcare to 21.75%. This is a strategic capital and business alliance between both companies that will provide both the Nigerian and Japanese markets the latest products and services in healthcare.
Fidson had listed 586,360,250 ordinary shares by way of Rights Issue on Monday, July 1, 2019. These additional shares listed, according to a statement sent to the Nigerian Exchange Commission (NSE), arose from Fidson Healthcare’s Rights Issue of 750,000,000 ordinary shares of 50 kobo each at N4.00 per share on the basis of 1 new ordinary share for every 2 ordinary shares held as at December 28 2018.
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Fidson was only able to raise 78.18% of what it’s expected to raise. This makes the total issued and fully paid up shares of Fidson Healthcare to increase to 2,086,360,250 ordinary shares from 1,500,000,000 after the additional 586,360,250 ordinary shares. Nairametrics learnt the company raised N2.3 billion falling short of its N3 billion target.
Rights issue, which is also known as rights offer, gives existing shareholders of a company an opportunity or right to increase their shares by purchasing new shares. This enables existing shareholders to buy shares at a discount to the market price.
Fidson Healthcare Plc
Part of the agreement will see Ohara enhance Fidson’s services and products by making pharmaceuticals and medical devices available to the company. These innovations and technology is expected to help Fidson compete better in the local healthcare.
According to the statement on NSE’s website, Fidson said, “The alliance holds promise as a significant growth driver for both companies, particularly as a major factor for the development of local pharmaceutical manufacturing in Nigeria.
“Given this growing population, there is no doubt that Nigeria is in urgent need of a rapid improvement in the standard of healthcare delivery. This can only be accelerated through modernisation and technological intervention which the alliance with Ohara aims to deliver.”
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Fidson is prepared choice for GSK: Nairametrics had reported that GlaxoSmithKline Consumer Nigeria Plc had chosen Fidson as its preferred local contract manufacturing partner. GSK will thus transition the manufacturing of its respiratory and wellness products to Fidson from the third quarter of 2021. The firm, however, maintained that activities would continue at its Agbara plant till then.
About Ohara Pharmaceutical: Ohara is a pharmaceutical company focusing on the businesses of orphan drugs and generic drugs. The company focuses on the development and marketing of orphan drugs, mainly in the field of pediatric oncology and on the development, manufacturing and marketing of generic drugs that give extra consideration to the prevention of medical accidents. Ohara plans to further expand these businesses into emerging countries, primarily in the Asian and African regions.
Macro-Economic News
Consumers overall confidence index dipped by 25.0% Y-o-Y- CBN
According to the latest Consumer Expectations Survey Report for Q3, 2020, consumers’ overall confidence index dipped to -21.2 points.
The consumers’ overall confidence index dipped to -21.2 points as at the third quarters of 2020(Q3,2020), down by 25.0%, from 3.8 points it recorded in the corresponding period last year. This is according to the latest Consumer Expectations Survey Report for Q3, 2020
What this means: The slip in outlook indicates that consumers were pessimistic in their outlook for Q3 2020. Respondents attributed this unfavourable outlook to declining economic conditions, family financial situation and declining family income.
The consumers were however optimistic in their outlook for the next quarter and next 12 months with indices of 10.1 and 30.5 points, respectively. This positive outlook could be attributed to the expected increase in net household income, an anticipated improvement in Nigeria’s economic conditions and expectations to save a bit and/or have plenty over savings in the next quarter and the next 12 months
Why this matter: The pandemic negatively impacted consumers’ income and businesses. Hence, the CBN wanted to gauge the impact of this pandemic on their confidence and outlook, both in the past and going forward, through their quarterly survey.
Other Key Highlights:
- The unemployment index for the next 12 months remained positive at 35.4 points in Q3 2020, indicating that consumers generally expect the unemployment rate to rise in the next one year.
- With indices of 20.8 and 5.3 points, consumers expect the borrowing rate to rise and anticipate the naira to appreciate in the next 12 months.
- Overall buying intention index in the next twelve months stood at 29.7 index points, indicating that most consumers do not intend to buy big-ticket items in the next 12 months. The buying intention indices for consumer durables, motor vehicles and house & lot were below 50 points, which shows that respondents have no plans to make these purchases in the next twelve months.
What you should know
The Overall consumer confidence index is computed as the average of the three indices, namely: Economic Condition, Family Financial Situation and Family Income.
a. Economic Condition refers to the perception of the respondent regarding the general economic condition of the country.
b. Family Financial Situation refers to the level of savings, investments, other assets including cash at hand and outstanding debts.
c. Family Income includes primary income and receipts from other sources received by all family members as participants in any economic activity or as recipients of transfers, pensions, grants, and the like
Energy
Power: Nigeria records transmission peak of 5,459.50MW – TCN
TCN has announced that it hit a peak transmission of 5,459.50MW on the 28th, October 2020.
The Transmission Company of Nigeria (TCN) announced that it hit a peak transmission of 5,459.50MW on the 28th, October 2020.
This was disclosed on Thursday in a statement by Ms Ndidi Mbah, General Manager, Public Affairs, TCN.
5️⃣,4️⃣5️⃣9️⃣.5️⃣0️⃣ Megawatts💡↗️
Good Job from the Men and Women of the Transmission Company of Nigeria and everyone within the Power Sector.
— Engr. Sale Mamman (@EngrSMamman) October 29, 2020
She said Nigeria hit the milestone on October 28th and surpassed the earlier record of 5,420.30MW achieved on August 18.
What you should know
Nairametrics reported that the Minister of Power, Engineer Sale Mamman, disclosed that Nigeria’s installed grid power generation capacity has grown from 8,000MW to 13,000MW under the leadership of President Muhammadu Buhari.
“The new peak surpasses the 5,420.30MW achieved on Aug. 18 by 39.20MW,” Ms Mbah said.
The Acting Managing Director, Mr Sule Ahmed Abdulaziz, commended all the players in the power sector value chain for the feat.
He attributed the gradual but steady improvement in the quantum of power delivery to collaboration by the sector players, as well as, the unbridled effort by the Federal Government – through the Ministry of Power – in setting the right environment for seamless operations.
The Acting Managing Director said the company will continue workings towards improved power transmission across the nation.
Nairametrics reported in August that the Federal Government of Nigeria revealed that the Siemens $2 billion power deal, under the Presidential Power Initiative (PPI) will save the nation over $1 billion annually.
Structure of the PPI funding:
- 85% from a consortium of banks guaranteed by the German government through credit insurance firm, Euler Hermes.
- 15% of the FG’s counterpart funding.
- 2–3 years moratorium.
- 10–12 years repayment at concessionary interest rates.
Financial Services
CBN grants Mortgage Refinancing Companies approval to refinance Non-member banks
The CBN has expanded access to mortgage financing by removing restrictions on refinancing mortgages earlier imposed.
The Central Bank of Nigeria (CBN), has granted approval to Mortgage Refinancing Companies (MRC), to re-finance non-member banks.
This is contained in a circular referenced FPR/DIR/GEN/CIR/07/056 and signed by Ibrahim Tukur, the Director of Financial Policy and Regulation Department, CBN.
The circular improved on the earlier provisions contained in section 7.3.1.5 which states that “A mortgage refinance company (MRC) shall not, without the prior approval of the CBN, extend total outstanding credit to any single borrower, which is equal to or more than twenty times the value of the borrower’s shares with the MRC or 25 percent of its shareholders’ funds unimpaired by losses.”
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What this means
Based on the provisions contained in the latest circular, MRCs are now free and legally permitted to refinance the qualifying mortgages of banks and all other non-members ( that do not hold equity), subject to meeting all other relevant requirements specified in the framework.
In a nutshell, the restriction on non-member mortgage lenders from refinancing their mortgages with MRCs has been removed.
READ: MFBs, DMBs, others get new lending limit directive from CBN
Why this matters
Prior to the provisions contained in the latest circular, CBN had expressed fears that provisions of section 7.3.1.5 negatively impacts the mortgages sub-sector, as it constrains the MRCS from refinancing the mortgages of non-shareholder banks. Therefore, the new order will help to remove the restrictions already highlighted.
In lieu of this, the latest circular stated that the provision of section 7.3.1 5 is hereby revised to “the MRC shall not, without prior approval of the CBN, extend total outstanding credit to any single borrower, which is equal to or more than 25 percent of its shareholders’ funds unimpaired by losses,” the circular reads.
Consumers overall confidence index dipped by 25.0% Y-o-Y- CBN
Power: Nigeria records transmission peak of 5,459.50MW – TCN
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CBN grants Mortgage Refinancing Companies approval to refinance Non-member banks
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