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, payment of dividends, closing of shareholders’ registers, and 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 from last week
Markdowns
C and I Leasing Plc was marked down by 7.5 kobo last week. Ex dividend price was N5.45.
Red Star Express Plc was marked down by 43 kobo. Ex dividend price was N5.28.
A mark down means that a proposed dividend is subtracted from a company’s share price.
Sins forgiven
Following the release of its results, a technical suspension placed on LASACO Assurance Plc was lifted.
A full suspension placed on Continental Reinsurance was lifted, as the firm will hold another court ordered meeting. The suspension was placed in December last year at the instance of the company’s broker, Chapel Hill Denham Securities. The Securities and Exchange Commission had cancelled the previous meeting following a few irregularities.
Appointments and Resignations
May and Baker Plc announced the appointment of Senator Daisy Danjuma as a Non Executive Director. The appointment was part of the resolutions following the AGM, which was held in May. No word on if she would serve as alternate director to her husband, TY Danjuma, or both of them will serve on the board.
Meyer Plc has appointed Rotimi Alashe as the Chief Financial Officer, effective 1st of July, 2019.
Transcorp Hotels Plc announced the appointment of Alexander Adeyemi as a non Executive Director effective 15th of July, 2019. Dr Wadinga Bakari also retired from the board effective same date.
Major moves
Fidson Healthcare Plc announced a strategic alliance with Ohara Pharmaceutical Co. Ltd, a Japanese Healthcare company. Following Fidson’s recent rights issue, Ohara’s shareholding in the company has increased to 21.75%.
Shareholders of Abbey Mortgage Bank have given the company’s board of directors approval to issue 2,261,538,462 ordinary shares at the rate of N1.05 to VFD Group Plc. The private placement is however subject to regulatory approval. Following the announcement, the bank’s shares were on full bid and the stock was one of the best performing last week.
A buy in
Royal Exchange Plc announced that InsurResilience Investment Fund had acquired a 39.25% stake in Royal Exchange General Insurance Limited. InsurResilience was set up by Kfw on behalf of the German government and is managed by BlueOrchard Finance, a Swiss-based impact investment manager.
A merger in the works
Lafarge Africa Plc’s Facts Behind the Figures session, which was to hold on Thursday, was postponed. The company’s Extraordinary General Meeting (EGM) is also scheduled to hold on Monday July 22, 2019. The firm will seek approval from shareholders for the merger of Lafarge Ready Mix Plc with Lafarge Africa Plc
Numbers on the way
Seplat Petroleum Development Company will release its H1 2019 results on July 30, 2019, and hold a conference call immediately after.
Omatek Ventures Plc held a board meeting on the 18th of July, 2019, at the Muson Centre, Onikan, Lagos.
The board has approved the company’s audited financial statements for the year ended 31st December, 2017 and 31st December, 2018.
Cutix Plc and Unilever Plc have indicated their intentions to release H1 2019 results on or before the 28th and 29th of July 2019 respectively.
Results released
United Capital H1 2019
United Capital released its half year results for the 2018 financial year. Gross earnings declined slightly by 15.7% from N3.8 billion in 2018 to N3.2 billion in 2019.
Profit before tax fell from N2.3 billion in 2018 to N1.9 billion in 2019, down 17.3% year on year. Profit after tax also dropped from N2 billion in 2018, to N1.6 billion in 2019, down 20%.
Earnings per share also fell by 17.6% from 34 kobo in 2018 to 28 kobo in 2019.
Africa Prudential H1 2019
Africa Prudential Plc released its results for the half year ended June 2019. Gross earnings fell by 4.7% from N2.1 billion in 2018 to N2 billion in 2019.
Profit before tax rose slightly from N1.1 billion in 2018 to N1.2 billion in 2019. This was largely due a sharp fall in finance costs, which fell by 76.3% from N427 million in 2018 to N101 million in 2019.
Profit after tax also rose marginally by 4.3% from N985 million in 2018 to N1 billion in 2019.
Earnings per share rose marginally by 4% from 49 kobo in 2018 to 51 kobo in 2019. For most investors, that’s the koko of the matter. Financial service firms have had it a bit tough this year.
Transcorp Plc H1 2019
Transcorp Plc released its results for the half year ended June 2019.
Revenue fell from N54 billion in 2018 to N37.7 billion in 2019, down 30.1% year on year. Profit before tax dropped sharply by 57.9% from N11.9 billion in 2018 to N5 billion in 2019. Profit after tax also declined from N10.8 billion in 2018 to N4.6 billion in 2019.
Sweet tales at Cadbury
Cadbury Nigeria H1 2019 Cadbury Nigeria Plc released its results for the 2018 financial year. Revenue increased by 11% from N17.5 billion in 2018 to N19.4 billion in 2019. The firm made a N957 million profit in 2019, as against a N423 million loss before tax recorded in 2018. Profit after tax stood at N669 million in 2019, as against a N423 million loss after tax in 2019.
‘Deap’ changes
Deap Capital Management and Trust Plc released its overdue results after trading hours on Friday. The firm has just completed a 5–year suspension from the capital market and is repositioning to resume normal operations.
Under the special items contained in its AGM notice, are the following resolutions:
- That the directors be authorized to convert N1.6 billion owed to creditors of the company into 1.5 billion ordinary shares.
- That the name of the company be changed from Deap Capital Management and Trust Plc to Deap Plc.
- The firm also intends to sign a 5–year agreement with Collaboration and Consulting Company (management consultants) to undertake the turn-around of the firm.
- The duration of the proposed agreement will be from October 2019 to September 2024.
The AGM is scheduled for the 22nd of August, 2019.
The company also announced a series of board changes, following a board meeting held on the 7th of June, 2019.
- Mr Joe Idudu and Mr Emmanuel Ugboh re-joined the board after a 5-year suspension placed on the firm came to an end on the 27th of March, 2019.
- Dr. Kenneth Olise, Edmond Ani, and Joel Omole were appointed to the board as part of the turnaround team that had made a proposal to the board to manage the firm for 5 years.
- Elder Williams Odudu resigned from the board, due to the new structure which comprises 2 persons from the current board, 2 from the old board which was suspended by SEC, and 3 from the turn–around team.
Corporate Actions taking place this week
AGMs and a Court Ordered Meeting
A number of firms will be holding their Annual General Meetings this week.
Ikeja Hotels will be holding its AGM on the 22nd of July, 2019. Lafarge Africa has a Court Ordered Meeting on the same date.
Presco Plc will hold its AGM on the 24th of July, 2019.
CCNN, Studio Press Nigeria, Sovereign Trust Insurance and NPF Microfinance Bank will hold their Annual General Meetings on the 25th of July, 2019.
Nigerian Aviation Handling Company Plc and John Holt Plc, will hold their Annual General Meetings on the 26th of July, 2019.
Board meetings
A number of firms will also hold board meetings to consider their H1 2019 results and other matters.
MTN Nigeria, LASACO Assurance Plc, Chemical and Allied Products (CAP) Plc and Royal Exchange Plc will hold board meetings on the 24th of July.
Regency Alliance Plc and AXA Mansard Insurance Plc will hold a board meeting on the 25th of July.
Access Bank Plc, Nestle Nigeria Plc, Dangote Cement Plc and The Initiates Plc will hold board meetings on the 26th of July 2019.
The Initiates and UPDC will hold board meetings to consider H1 2019 results. For UPDC, the results could be released shortly after the meeting.
SEC vs JAT and Mofe continues
Further hearing on the suit between the Securities and Exchange Commission (SEC) and the duo of Wale Tinubu and Mofe Boyo continues this week.