Connect with us
nairametrics
UBA ads

FEATURED

Understanding Optional Dividends

An optional dividend is a dividend where shareholders have the ability to choose between two or more forms of payment.

Published

on

Revenue Reserves and Dividends, Using Earnings to Select Stocks, Dividends

Stanbic IBTC recently notified its esteemed shareholders of the intention of its Board of Directors to pay an interim dividend of N1 per share.

According to the said notification, shareholders are given the option to choose between receiving all the dividend in cash, or in additional shares, or even a combination of cash and shares.  This is a case of optional dividend.

UBA ADS

What is an optional dividend?

An optional dividend is a dividend where shareholders have the ability to choose between two or more forms of payment.

How optional dividend works

The way optional dividend works is pretty simple but it entails that the shareholder should make an election and communicate the election to the company or its registrar. Unlike regular cash dividend, where every shareholder on the record or ex-date automatically “gets credited” with the cash value of the dividend, optional dividends are not so automatic because they are elective and as such, the registrar or custodian will only act upon the election or decision of the shareholder.

[READ MORE: 2018 FY: Flour Mills’ shareholders unanimously endorse N4.92 billion dividend]

GTBank 728 x 90

As noted in the release by Stanbic IBTC, elections are made by completing the requisite form and channelling same to the appropriate quarters within the allowed time.

What choice should I make?

No matter what choice you make as a shareholder (either to receive cash and/or additional shares), you should receive the exact same amount of dividend you are entitled to. The only difference is that those who elected to be paid in cash would receive cash, while those that elected to receive additional shares will receive additional shares that are worth the cash they would have received.

Dividend

In the case of Stanbic IBTC, each share is being given to those who elect to receive their dividend in shares at a price of N35.86 per share. This means that if you held 36 shares of Stanbic IBTC shares as at the record date and you opted to receive your dividend in cash, you will receive cash of N36, but if you elected to receive it in stock, you will receive one share valued at N35.86, and you will receive what is called cash in lieu of N0.14 to make up for the difference between the stock value received and the cash dividend forgone.

Fractional shares

Alternatively, the company may decide to issue fractional shares. In that case, you will not receive the cash in lieu, rather you will receive a fraction of a share to make up for the difference.

Cash Vs Stock

Now, having known that you will not be short-changed no matter what payment type you choose, the question then is, should I choose to be paid in cash or additional shares? If you are an income investor, a retiree, in need of cash and you want the peace of mind that cash offers, then choosing to be paid in cash should appeal to you. One advantage of receiving your dividend in cash is that it offers you the freedom of using the resulting cash however you want.

app

[READ MORE: Difference Between Interim Dividend and Final Dividend]

On the other hand, if you are a risk lover, growth or value investor, electing to receive additional shares should be your thing. An advantage of opting for additional shares is that it enables you to participate in the company’s future growth by way of increased market value per share. The disadvantage, however, is that, should you need cash, you will need to sell the shares and incur the trading commission that goes with it, an expense you would avoid if you choose to receive cash dividend.

In addition to that, depending on the market, you are not guaranteed to sell the shares at a price that will amount to the cash dividend, but it could be more if the company does well after the dividend corporate action.

devland
Coronation ads

Stanbic IBTC

Conclusion

If you are risk-averse, a choice of cash dividend should be good for you, but if you are a risk lover, additional shares could appeal to you, especially if you are ready to hold the shares for the long term. However, given the price trend of Stanbic IBTC Holdings company, which indicates that the share had seen more downs than ups, since around October 2018, a choice of cash dividend may be more optimal, especially, if you can invest the cash elsewhere.

GTBank 728 x 90
thegreenafricaproject 300x250

Note that nothing in this article should be construed as investment advice but a mere expression of personal opinion. If you need professional advice on the topic or on Stanbic IBTC optional (Scrip) dividend, consult your broker.

 

Patricia

Uchenna Ndimele is the President of Quantitative Financial Analytics Ltd. MutualfundsAfrica.com and mutualfundsnigeria.com (both Quantitative Financial Analytics company website) is a leader in supplying mutual fund information, analysis, and commentary on African mutual funds. We provide reliable fund data; and ratings information that will add value to fund managers, the media, individual investors and investment clubs.

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Currencies

Daily Parallel Market exchange rate – ₦480/$1

The US dollar stands at ₦480/US$1 in the parallel market

Published

on

Forex, NIGERIA: Daily Parallel Market, Exchange Rate

The exchange rate between the naira and the US dollar as of Tuesday, August 4th 2020 stands at 480/US$1 on the parallel market. The exchange rate closed at 480/$1 on Monday 3rd August 2020.

  • Naira:480
  • Dollar: $1
  • Date: August 4th, 2020

The exchange rate between the naira and the British pound sterling stands at  ₦570/₤1 on Tuesday 4th August same as recorded on Monday 3rd August 2020.

UBA ADS
  • Naira: ₦570
  • Pounds Sterling: ₤1
  • Date: August 4th, 2020

Explore Economic Research Data From Nairametrics on Nairalytics

The exchange rate between the naira and the European euro stands at ₦530/€1 on Tuesday 4th August 2020. The exchange rate also closed at ₦530/€1 on Monday 3rd August 2020.

  • Naira: ₦530
  • Euro: €1
  • Date: August 4th, 2020

Activity: USD sells for an average of 480/US$1 in the parallel market

GTBank 728 x 90

READ ALSO: The risk of buying Forex at black market rate of N460/$1 

DateCurrencyBuy(AM)Sell(AM)Buy(PM)Sell(PM)Volatility
8/4/2020Dollar470480
8/4/2020Pounds560570
8/4/2020Euro520530
8/3/2020Dollar470480470480Low
8/3/2020Pounds560570560570Low
8/3/2020Euro520530520530Low
7/31/2020Dollar470480470485High
7/31/2020Pounds570582575585Low
7/31/2020Euro500520505520Low
7/30/2020Dollar470490470485High
7/30/2020Pounds550570550580High
7/30/2020Euro495520500525High
7/29/2020Dollar468475467475Low
7/29/2020Pounds575585580590Low
7/29/2020Euro530540530545Low
7/28/2020Dollar469475467475Low
7/28/2020Pounds575593580595Low
7/28/2020Euro550560540550Low
7/27/2020Dollar465473466473Low
7/27/2020Pounds570580575583Low
7/27/2020Euro510520515530Low
7/24/2020Dollar465472464472Low
7/24/2020Pounds570580572582Low
7/24/2020Euro510520505520Low
7/23/2020Dollar460472465472Low
7/23/2020Pounds565575565580Low
7/23/2020Euro510520505520Low
7/22/2020Dollar465472465472Low
7/22/2020Pounds565575560578Low
7/22/2020Euro510525510528Low
7/21/2020Dollar461472462472Low
7/21/2020Pounds560573560575Low
7/21/2020Euro498515500520Low
7/20/2020Dollar460473462473Low
7/20/2020Pounds550570555575Low
7/20/2020Euro495505500510Low
7/17/2020Dollar462470460470Low
7/17/2020Pounds560570558570Low
7/17/2020Euro490500490500Low
7/16/2020Dollar460470460470Low
7/16/2020Pounds558565560570Low
7/16/2020Euro485495485499Low
7/15/2020Dollar455465455470Low
7/15/2020Pounds560565558570Low
7/15/2020Euro485495488498Low
7/14/2020Dollar448462455470Low
7/14/2020Pounds540550557570Low
7/14/2020Euro485495489498Low
7/13/2020Dollar450460448462Low
7/13/2020Pounds540550540550Low
7/13/2020Euro485495485495Low
7/10/2020Dollar453460458465Low
7/10/2020Pounds520525550555High
7/10/2020Euro465467510520High
7/9/2020Dollar455461455463Low
7/9/2020Pounds550558550562Low
7/9/2020Euro495504498505Low
7/8/2020Dollar455461455461Low
7/8/2020Pounds550558550558Low
7/8/2020Euro495504495504Low
7/7/2020Dollar455461455461Low
7/7/2020Pounds550558550558Low
7/7/2020Euro495502495502Low
7/6/2020Dollar455462455461Low
7/6/2020Pounds550562547555Low
7/6/2020Euro495502496502Low
7/3/2020Dollar455462454461Low
7/3/2020Pounds548560550560Low
7/3/2020Euro495505495502Low
7/2/2020Dollar455462454461Low
7/2/2020Pounds548560550560Low
7/2/2020Euro495505495502Low
7/1/2020Dollar455462455462Low
7/1/2020Pounds548560548560Low
7/1/2020Euro495505495505Low
6/30/2020Dollar452460452460Low
6/30/2020Pounds547560547560Low
6/30/2020Euro495505495505Low
6/29/2020Dollar450460450460Low
6/29/2020Pounds547560547560Low
6/29/2020Euro495505495505Low
6/26/2020Dollar452457452460Low
6/26/2020Pounds547557547560Low
6/26/2020Euro490498490502Low
6/25/2020Dollar452457450455Low
6/25/2020Pounds547557547560Low
6/25/2020Euro490498490499Low
6/24/2020Dollar450460450455Low
6/24/2020Pounds545555545555Low
6/24/2020Euro490495488498Low
6/23/2020Dollar450460445455Low
6/23/2020Pounds545555545555Low
6/23/2020Euro490495490495Low
6/22/2020Dollar450455450455Low
6/22/2020Pounds545555545555Low
6/22/2020Euro488498488498Low
6/19/2020Dollar445455445455Low
6/19/2020Pounds540553540553Low
6/19/2020Euro480490480490Low
6/18/2020Dollar445452445452Low
6/18/2020Pounds537550537550Low
6/18/2020Euro475490475490Low
6/17/2020Dollar445452445452Low
6/17/2020Pounds540553537550Low
6/17/2020Euro475490475490Low
6/16/2020Dollar440450445452Low
6/16/2020Pounds540550540553Low
6/16/2020Euro475485475490Low
6/15/2020Dollar440450440450Low
6/15/2020Pounds540550540550Low
6/15/2020Euro475485475485Low
6/12/2020Dollar440450440450Low
6/12/2020Pounds538550538550Low
6/12/2020Euro470485470485Low
6/11/2020Pounds538550538550Low
6/11/2020Dollar440450440450Low
6/11/2020Euro470485470485Low
6/10/2020Pounds538550540553Low
6/10/2020Dollar440450445452Low
6/10/2020Euro470485475490Low
6/9/2020Pounds538550540550Low
6/9/2020Dollar440450440450Low
6/9/2020Euro470485475485Low
6/8/2020Pounds540550540550Low
6/8/2020Dollar440450440450Low
6/8/2020Euro475485475485Low
6/5/2020Pounds535545535545Low
6/5/2020Dollar440450440450Low
6/5/2020Euro460472460472Low
6/4/2020Pounds530543530543Low
6/4/2020Dollar440447440447Low
6/4/2020Euro460470460470Low
6/3/2020Pounds530540530540Low
6/3/2020Dollar440445440445Low
6/3/2020Euro460470460470Low
6/2/2020Pounds535545535545Low
6/2/2020Dollar440450440450Low
6/2/2020Euro460472460472Low
6/1/2020Pounds530543530543Low
6/1/2020Dollar440447440447Low
6/1/2020Euro460470460470Low
5/29/2020Pounds530540530540Low
5/29/2020Dollar440445440445Low
5/29/2020Euro460470460470Low
5/28/2020Pounds535545535545Low
5/28/2020Dollar440450440450Low
5/28/2020Euro460472460472Low
5/27/2020Pounds530543530543Low
5/27/2020Dollar440447440447Low
5/27/2020Euro460470460470Low
5/26/2020Pounds530540530540Low
5/26/2020Dollar440445440445Low
5/26/2020Euro460470460470Low
5/25/2020Pounds535545535545Low
5/25/2020Dollar440450440450Low
5/25/2020Euro460472460472Low
5/22/2020Pounds530543530543Low
5/22/2020Dollar440447440447Low
5/22/2020Euro460470460470Low
5/21/2020Pounds530545530545Low
5/21/2020Dollar450460450460Low
5/21/2020Euro460470460470Low
5/20/2020Pounds530550530550Low
5/20/2020Dollar445460445460Low
5/20/2020Euro450470450470Low
5/19/2020Pounds528540528540Low
5/19/2020Dollar445460445460Low
5/19/2020Euro450465450465Low
5/18/2020Pounds528540528540Low
5/18/2020Dollar445460445460Low
5/18/2020Euro450465450465Low
5/15/2020Pounds530540525535Low
5/15/2020Dollar435450440455Low
5/15/2020Euro450460450465Low
5/14/2020Pounds530540530540Low
5/14/2020Dollar435450435450Low
5/14/2020Euro450460450460Low
5/13/2020Pounds525535525535Low
5/13/2020Dollar430450430450Low
5/13/2020Euro440455440455Low
5/12/2020Pounds525535525535Low
5/12/2020Dollar435450435450Low
5/12/2020Euro445455445455Low
5/11/2020Pounds510530525535Low
5/11/2020Dollar430445435445Low
5/11/2020Euro440450445455Low
5/8/2020Pounds510530510530Low
5/8/2020Dollar425437430445Low
5/8/2020Euro425440440450Low
5/7/2020Pounds510530510530Low
5/7/2020Dollar425437425437Low
5/7/2020Euro425440425440Low
5/6/2020Pounds510520510520Low
5/6/2020Dollar425437425437Low
5/6/2020Euro430450430450Low
5/5/2020Pounds510525510525Low
5/5/2020Dollar410430420430Low
5/5/2020Euro425435425435Low
5/4/2020Pounds500510510525Low
5/4/2020Dollar435450410430Low
5/4/2020Euro430440425435Low
5/1/2020Pounds500510500510Low
5/1/2020Dollar435450435450Low
5/1/2020Euro430445430445Low
4/30/2020Pounds500510500510Low
4/30/2020Dollar435450435450Low
4/30/2020Euro430445430445Low
4/29/2020Pounds500520500520Low
4/29/2020Dollar440460440460Low
4/29/2020Euro450465450465Low
4/28/2020Pounds495510500520Low
4/28/2020Dollar430450440460Low
4/28/2020Euro435450435450Low
4/27/2020Pounds495510495510Low
4/27/2020Dollar430450430450Low
4/27/2020Euro435450435450Low
4/24/2020Pounds490500490500Low
4/24/2020Dollar428450428450Low
4/24/2020Euro430440430440Low
4/23/2020Pounds490500490500Low
4/23/2020Dollar420430420430Low
4/23/2020Euro425435425435Low
4/22/2020Pounds490500490500Low
4/22/2020Dollar420425420430Low
4/22/2020Euro425435425435Low
4/21/2020Pounds490500490500Low
4/21/2020Dollar420430420430Low
4/21/2020Euro425435425435Low
4/20/2020Pounds490500490500Low
4/20/2020Dollar420430420430Low
4/20/2020Euro425435425435Low
4/17/2020Pounds490500490500Low
4/17/2020Dollar420430420430Low
4/17/2020Euro425435425435Low
4/16/2020Pounds490500490500Low
4/16/2020Dollar420430420430Low
4/16/2020Euro425435425435Low
4/15/2020Pounds490500490500Low
4/15/2020Dollar420430420430Low
4/15/2020Euro425435425435Low
4/14/2020Pounds490500490500Low
4/14/2020Dollar420430420430Low
4/14/2020Euro425435425435Low
4/13/2020Pounds490500490500Low
4/13/2020Dollar420430420430Low
4/13/2020Euro425435425435Low
4/10/2020Pounds490505490505Low
4/10/2020Dollar420430420430Low
4/10/2020Euro425435425435Low
4/9/2020Pounds490505490505Low
4/9/2020Dollar420430420430Low
4/9/2020Euro425435425435Low
4/8/2020Pounds490500490500Low
4/8/2020Dollar420430420430Low
4/8/2020Euro425435425435Low
4/7/2020Pounds490500490500Low
4/7/2020Dollar420430420430Low
4/7/2020Euro425435425435Low
4/6/2020Pounds492497492497Low
4/6/2020Dollar402412402412Low
4/6/2020Euro410415410415Low
4/3/2020Pounds485490492497Low
4/3/2020Dollar400410402412Low
4/3/2020Euro410415410415Low
4/2/2020Pounds485490485490Low
4/2/2020Dollar400410400410Low
4/2/2020Euro410415410415Low
4/1/2020Pounds480485480485Low
4/1/2020Dollar395400395400Low
4/1/2020Euro407412407412Low
3/31/2020Pounds480485480485Low
3/31/2020Dollar395400395400Low
3/31/2020Euro407412407412Low
3/30/2020Pounds480485480485Low
3/30/2020Dollar390395395400Low
3/30/2020Euro407412407412Low
3/27/2020Pounds480485480485Low
3/27/2020Dollar385390390395Low
3/27/2020Euro405410407412Low
3/26/2020Pounds480485480485Low
3/26/2020Dollar385390385390Low
3/26/2020Euro405410405410Low
3/25/2020Pounds475480480485Low
3/25/2020Dollar380385385390Low
3/25/2020Euro400405405410Low
3/24/2020Pounds475480475480Low
3/24/2020Dollar380385380385Low
3/24/2020Euro400405400405Low
3/23/2020Pounds474478474478Low
3/23/2020Dollar380385380385Low
3/23/2020Euro400403400403Low
3/20/2020Pounds475480475480Low
3/20/2020Dollar370375365367Low
3/20/2020Euro395400395400Low
3/19/2020Pounds475480475480Low
3/19/2020Dollar370375370375Low
3/19/2020Euro395400395400Low
3/18/2020Pounds471475471475Low
3/18/2020Dollar370375370375Low
3/18/2020Euro390395390395Low
3/17/2020Pounds470475470475Low
3/17/2020Dollar375380375380Low
3/17/2020Euro400403400403Low
3/16/2020Pounds470475470475Low
3/16/2020Dollar370375370375Low
3/16/2020Euro400403400403Low
3/13/2020Pounds470475470475Low
3/13/2020Dollar372377372377Low
3/13/2020Euro400403400403Low
3/12/2020Pounds475485490495High
3/12/2020Dollar365380375404High
3/12/2020Euro405412410420Low
3/11/2020Pounds470475475485Low
3/11/2020Dollar360366365375Low
3/11/2020Euro387403405412Low
3/10/2020Pounds468472470475Low
3/10/2020Dollar358360360362Low
3/10/2020Euro390398387403Low
3/9/2020Pounds468472468472Low
3/9/2020Dollar358360358360Low
3/9/2020Euro392398392398Low
3/6/2020Pounds468472468472Low
3/6/2020Dollar358360358360Low
3/6/2020Euro390398390398Low
3/5/2020Pounds468472468472Low
3/5/2020Dollar358360358360Low
3/5/2020Euro390397390397Low
3/4/2020Pounds468473468473Low
3/4/2020Dollar358360358360Low
3/4/2020Euro387392387392Low
3/3/2020Pounds468472468472Low
3/3/2020Dollar358360358360Low
3/3/2020Euro387392387392Low
3/2/2020Pounds468472468472Low
3/2/2020Dollar358360358360Low
3/2/2020Euro387392387392Low
2/28/2020Pounds468472468472Low
2/28/2020Dollar358360358360Low
2/28/2020Euro387392387392Low
2/27/2020Pounds467471468472Low
2/27/2020Dollar358360358360Low
2/27/2020Euro386390387392Low
2/26/2020Pounds468472467471Low
2/26/2020Dollar358360358360Low
2/26/2020Euro386390386390Low
2/25/2020Pounds467472468472Low
2/25/2020Dollar358360358360Low
2/25/2020Euro388392386390Low
2/24/2020Pounds467472467472Low
2/24/2020Dollar358360358360Low
2/24/2020Euro388392388393Low
2/21/2020Pounds467473468473Low
2/21/2020Dollar358360358360Low
2/21/2020Euro388392388392Low
2/20/2020Pounds467473467473Low
2/20/2020Dollar358360358360Low
2/20/2020Euro388392388392Low
2/19/2020Pounds467473467473Low
2/19/2020Dollar358360358360Low
2/19/2020Euro390394390394Low
2/18/2020Pounds467473467473Low
2/18/2020Dollar358360358360Low
2/18/2020Euro390394390394Low
2/17/2020Pounds469473467474Low
2/17/2020Dollar358360358360Low
2/17/2020Euro390394390394Low
2/14/2020Pounds469473469473Low
2/14/2020Dollar358360358360Low
2/14/2020Euro390394390394Low
2/13/2020Pounds470475470475Low
2/13/2020Dollar358360358360Low
2/13/2020Euro390396390396Low
2/12/2020Pounds470475470475Low
2/12/2020Dollar358360358360Low
2/12/2020Euro390396390396Low
2/11/2020Pounds470475470475Low
2/11/2020Dollar358360358360Low
2/11/2020Euro390396390396Low
2/10/2020Pounds470475470475Low
2/10/2020Dollar358360358360Low
2/10/2020Euro390396390396Low
2/7/2020Pounds471475471475Low
2/7/2020Dollar358360358360Low
2/7/2020Euro390396392396Low
2/6/2020Pounds473476473476Low
2/6/2020Dollar358360358360Low
2/6/2020Euro392397392397Low
2/5/2020Pounds473476473476Low
2/5/2020Dollar358360358360Low
2/5/2020Euro393397393397Low
2/4/2020Pounds473476473476Low
2/4/2020Dollar358360358360Low
2/4/2020Euro393397393397Low
2/3/2020Pounds473476473476Low
2/3/2020Dollar358360358360Low
2/3/2020Euro393397393397Low
1/31/2020Pounds473476473476Low
1/31/2020Dollar358360358360Low
1/31/2020Euro393397393397Low
1/30/2020Pounds472478472476Low
1/30/2020Dollar358361358360Low
1/30/2020Euro394398394398Low
1/29/2020Pounds472476472476Low
1/29/2020Dollar358360358360Low
1/29/2020Euro394398394398Low
1/28/2020Pounds472476472476Low
1/28/2020Dollar358360358360Low
1/28/2020Euro394398394398Low
1/27/2020Pounds473476473476Low
1/27/2020Dollar358360358360Low
1/27/2020Euro394398394398Low
1/24/2020Pounds474478474478Low
1/24/2020Dollar358362358362Low
1/24/2020Euro395400395400Low
1/23/2020Pounds474478474478Low
1/23/2020Dollar358362358362Low
1/23/2020Euro395400395400Low
1/22/2020Pounds474478474478Low
1/22/2020Dollar359362359362Low
1/22/2020Euro394398394398Low
1/21/2020Pounds473477475479Low
1/21/2020Dollar360362359362Low
1/21/2020Euro395400395400Low
1/20/2020Pounds473477473477Low
1/20/2020Dollar360362360362Low
1/20/2020Euro395400395400Low
1/17/2020Pounds473477473477Low
1/17/2020Dollar360362360362Low
1/17/2020Euro395400395400Low
1/16/2020Pounds457480474477Low
1/16/2020Dollar360362360362Low
1/16/2020Euro397403395400Low
1/15/2020Pounds475480475480Low
1/15/2020Dollar360362360362Low
1/15/2020Euro397402397402Low
1/14/2020Pounds470475474480Low
1/14/2020Dollar359362360362Low
1/14/2020Euro397402397400Low
1/13/2020Pounds470477470475Low
1/13/2020Dollar359362359362Low
1/13/2020Euro397403397402Low
1/10/2020Pounds470475470475Low
1/10/2020Dollar359362359362Low
1/10/2020Euro397402397402Low
1/9/2020Pounds470475470475Low
1/9/2020Dollar359362359362Low
1/9/2020Euro397403397403Low
1/8/2020Pounds470475470475Low
1/8/2020Dollar359362359362Low
1/8/2020Euro397403397403Low
1/7/2020Pounds470477470477Low
1/7/2020Dollar359362359362Low
1/7/2020Euro397403397403Low
1/6/2020Pounds468473470477Low
1/6/2020Dollar359362359362Low
1/6/2020Euro392400397403Low
1/3/2020Pounds468473468473Low
1/3/2020Dollar359362359362Low
1/3/2020Euro390400390400Low
1/2/2020Pounds467473467473Low
1/2/2020Dollar359362359362Low
1/2/2020Euro392400392400Low
12/24/2019Pounds468474468474Low
12/24/2019Dollar358361358361Low
12/24/2019Euro390395390395Low
12/23/2019Pounds474478474478Low
12/23/2019Dollar359362359362Low
12/23/2019Euro395400395400Low
12/20/2019Pounds474480474480Low
12/20/2019Dollar359363359363Low
12/20/2019Euro395401395401Low
12/19/2019Pounds472480472480Low
12/19/2019Dollar359363359363Low
12/19/2019Euro395401395401Low
12/18/2019Pounds472480472480Low
12/18/2019Dollar360363359363Low
12/18/2019Euro395400395400Low
12/17/2019Pounds470477472477Low
12/17/2019Dollar360363360363Low
12/17/2019Euro394398394398Low
12/16/2019Pounds470475470477Low
12/16/2019Dollar359363360363Low
12/16/2019Euro394398394398Low
12/13/2019Pounds470480470476Low
12/13/2019Dollar359362359363Low
12/13/2019Euro394398394398Low
12/12/2019Pounds464472464472Low
12/12/2019Dollar358360359361Low
12/12/2019Euro392397392397Low
12/11/2019Pounds463470464472Low
12/11/2019Dollar358360358360Low
12/11/2019Euro393397392397Low
12/10/2019Pounds462468463470Low
12/10/2019Dollar358360358360Low
12/10/2019Euro392397393397Low
12/9/2019Pounds462468462468Low
12/9/2019Dollar358360358360Low
12/9/2019Euro392397392397Low
12/6/2019Pounds462467463468Low
12/6/2019Dollar358360358360Low
12/6/2019Euro390396390396Low
12/5/2019Pounds462467462467Low
12/5/2019Dollar358360358360Low
12/5/2019Euro390396390396Low
12/4/2019Pounds460466460466Low
12/4/2019Dollar358360358360Low
12/4/2019Euro390396390396Low
12/3/2019Pounds460465460465Low
12/3/2019Dollar358360358360Low
12/3/2019Euro390396390396Low
12/2/2019Pounds460466460465Low
12/2/2019Dollar358360358360Low
12/2/2019Euro390395390395Low
11/29/2019Pounds462466462466Low
11/29/2019Dollar358360358360Low
11/29/2019Euro390395392397Low
11/28/2019Pounds462467462466Low
11/28/2019Dollar358360358360Low
11/28/2019Euro390395390395Low
11/27/2019Pounds460465462467Low
11/27/2019Dollar358360358360Low
11/27/2019Euro391396390395Low
11/26/2019Pounds462466462466Low
11/26/2019Dollar358360358360Low
11/26/2019Euro390395390395Low
11/25/2019Pounds460465462466Low
11/25/2019Dollar358360358360Low
11/25/2019Euro390398390395Low
11/22/2019Pounds460464460465Low
11/22/2019Dollar357360358360Low
11/22/2019Euro390398390398Low
11/21/2019Pounds460464460464Low
11/21/2019Dollar357360357360Low
11/21/2019Euro390397390397Low
11/20/2019Pounds460464460464Low
11/20/2019Dollar358360358360Low
11/20/2019Euro390398390397Low
11/19/2019Pounds460465460464Low
11/19/2019Dollar358360358360Low
11/19/2019Euro392398390398Low
11/18/2019Pounds458464460465Low
11/18/2019Dollar358360358360Low
11/18/2019Euro390398392398Low
11/15/2019Pounds458464458464Low
11/15/2019Dollar358360358360Low
11/15/2019Euro392398393398Low
11/14/2019Pounds458464458464Low
11/14/2019Dollar358360358360Low
11/14/2019Euro390398392398Low
11/13/2019Pounds460465458464Low
11/13/2019Dollar358360358360Low
11/13/2019Euro392398392398Low
11/12/2019Pounds460465460465Low
11/12/2019Dollar358360358360Low
11/12/2019Euro394399394399Low
11/8/2019Pounds458463460465Low
11/8/2019Dollar358360358360Low
11/8/2019Euro393398394400Low
11/6/2019Pounds458463458464Low
11/6/2019Dollar357360357360Low
11/6/2019Euro393400393400Low
11/5/2019Pounds458463458463Low
11/5/2019Dollar357360357360Low
11/5/2019Euro393400393400Low
11/4/2019Pounds458463458463Low
11/4/2019Dollar357360357360Low
11/4/2019Euro392400393400Low
11/1/2019Pounds458463458463Low
11/1/2019Dollar358360358360Low
11/1/2019Euro393400394400Low
10/31/2019Pounds460464458463Low
10/31/2019Dollar358360358360Low
10/31/2019Euro395400393400Low
10/30/2019Pounds457463457463Low
10/30/2019Dollar358360358360Low
10/30/2019Euro395400395400Low
10/29/2019Pounds457463457463Low
10/29/2019Dollar358360358360Low
10/29/2019Euro395400395400Low
10/28/2019Pounds457462457463Low
10/28/2019Dollar358360358360Low
10/28/2019Euro396402395400Low
10/25/2019Pounds457463457462Low
10/25/2019Dollar358360358360Low
10/25/2019Euro396403396402Low
10/24/2019Pounds457462457463Low
10/24/2019Dollar358360358360Low
10/24/2019Euro396403396403Low
10/23/2019Pounds457463457462Low
10/23/2019Dollar358360358360Low
10/23/2019Euro397403396403Low
10/22/2019Pounds455460457463Low
10/22/2019Dollar358360358360Low
10/22/2019Euro395402397403Low
10/21/2019Pounds450455450455Low
10/21/2019Dollar358360358360Low
10/21/2019Euro387395390397Low
10/18/2019Pounds446453446453Low
10/18/2019Dollar358360358360Low
10/18/2019Euro387393387393Low
10/17/2019Pounds445450446452Low
10/17/2019Dollar358360358360Low
10/17/2019Euro387392387393Low
10/16/2019Pounds445452445450Low
10/16/2019Dollar358360358360Low
10/16/2019Euro387395387392Low
10/15/2019Pounds445450445452Low
10/15/2019Dollar357360358360Low
10/15/2019Euro385390385390Low
10/14/2019Pounds445450445450Low
10/14/2019Dollar358360357360Low
10/14/2019Euro384390385390Low
10/11/2019Pounds445450445450Low
10/11/2019Dollar358360358360Low
10/11/2019Euro384390384390Low
10/10/2019Pounds445450445450Low
10/10/2019Dollar357360357360Low
10/10/2019Euro386390384390Low
10/9/2019Pounds445453445450Low
10/9/2019Dollar357360357360Low
10/9/2019Euro390395386390Low
10/8/2019Pounds448453445453Low
10/8/2019Dollar357360357360Low
10/8/2019Euro390395390395Low
10/7/2019Pounds448453448453Low
10/7/2019Dollar358360358360Low
10/7/2019Euro392396390395Low
10/4/2019Pounds450454448453Low
10/4/2019Dollar358360358360Low
10/4/2019Euro392397392396Low
10/3/2019Pounds450454450454Low
10/3/2019Dollar358360358360Low
10/3/2019Euro392397392397Low
10/2/2019Pounds450453450453Low
10/2/2019Dollar358360358360Low
10/2/2019Euro392397392397Low
9/30/2019Pounds445450450453Low
9/30/2019Dollar358360358360Low
9/30/2019Euro392397392397Low
9/27/2019Pounds446452445450Low
9/27/2019Dollar357360358360Low
9/27/2019Euro392396392397Low
9/26/2019Pounds445450445450Low
9/26/2019Dollar357360357360Low
9/26/2019Euro390395392396Low
9/25/2019Pounds444449445450Low
9/25/2019Dollar357360357360Low
9/25/2019Euro390394390395Low
9/24/2019Pounds445448445449Low
9/24/2019Dollar357360357360Low
9/24/2019Euro390395390395Low
9/23/2019Pounds445450445450Low
9/23/2019Dollar357360357360Low
9/23/2019Euro392395392396Low
9/20/2019Pounds443446445450Low
9/20/2019Dollar357360357360Low
9/20/2019Euro392395392395Low
9/19/2019Pounds442446443446Low
9/19/2019Dollar357360357360Low
9/19/2019Euro390395391394Low
9/18/2019Pounds442447440446Low
9/18/2019Dollar357360357360Low
9/18/2019Euro390395390395Low
9/17/2019Pounds445448444447Low
9/17/2019Dollar358360358360Low
9/17/2019Euro394398393397Low
9/16/2019Pounds445450445450Low
9/16/2019Dollar357360357360Low
9/16/2019Euro394400394400Low
9/13/2019Pounds445450445450Low
9/13/2019Dollar357360357360Low
9/13/2019Euro394398394398Low
9/12/2019Pounds440445445450Low
9/12/2019Dollar357360357360Low
9/12/2019Euro393398394398Low
9/11/2019Pounds440446440446Low
9/11/2019Dollar358360358360Low
9/11/2019Euro392395392398Low
9/10/2019Pounds437450440446Low
9/10/2019Dollar356360358360Low
9/10/2019Euro388397392395Low
9/9/2019Pounds440444440445Low
9/9/2019Dollar358360358360Low
9/9/2019Euro390396390395Low
9/6/2019Pounds440444440444Low
9/6/2019Dollar358360358360Low
9/6/2019Euro392398390396Low
9/5/2019Pounds440444440444Low
9/5/2019Dollar357360358360Low
9/5/2019Euro392398392397Low
9/4/2019Pounds440443440444Low
9/4/2019Dollar357360358360Low
9/4/2019Euro392398392397Low
9/3/2019Pounds438443438443Low
9/3/2019Dollar357360357360Low
9/3/2019Euro392397392398Low
9/2/2019Pounds437445438443Low
9/2/2019Dollar357360357360Low
9/2/2019Euro391396392397Low
30/08/2019Pounds442448440445Low
30/08/2019Dollar358360358360Low
30/08/2019Euro392398395398Low
29/08/2019Pounds440446442448Low
29/08/2019Dollar358360358360Low
29/08/2019Euro392398392398Low
28/08/2019Pounds444450440445Low
28/08/2019Dollar358360358360Low
28/08/2019Euro392396392398Low
27/08/2019Pounds444450444450Low
27/08/2019Dollar358360358360Low
27/08/2019Euro394400393398Low
26/08/2019Pounds442447443448Low
26/08/2019Dollar358360358360Low
26/08/2019Euro392397393397Low
23/08/2019Pounds440445440445Low
23/08/2019Dollar358360358360Low
23/08/2019Euro390397390397Low
22/08/2019Pounds445450440445Low
22/08/2019Dollar357359358360Low
22/08/2019Euro393398390397Low
21/08/2019Pounds447452445450Low
21/08/2019Dollar358360357359Low
21/08/2019Euro392398393398Low
20/08/2019Pounds450455447452Low
20/08/2019Dollar358360358360Low
20/08/2019Euro395400392398Low
19/08/2019Pounds450455450455Low
19/08/2019Dollar358360358360Low
19/08/2019Euro395400395400Low
16/08/2019Pounds451455450455Low
16/08/2019Dollar357360358360Low
16/08/2019Euro397402395400Low
15/08/2019Pounds450455451455Low
15/08/2019Dollar357360357360Low
15/08/2019Euro398403397402Low
14/08/2019Pounds450455450455Low
14/08/2019Dollar357360357360Low
14/08/2019Euro398403398403Low
9/8/2019Pounds450455450455Low
9/8/2019Dollar357360357360Low
9/8/2019Euro398404398403Low
8/8/2019Pounds450455450455Low
8/8/2019Dollar357360357360Low
8/8/2019Euro398403398404Low
7/8/2019Pounds453458450455Low
7/8/2019Dollar357360357360Low
7/8/2019Euro398403398403Low
6/8/2019Pounds457460452458Low
6/8/2019Dollar358360357360Low
6/8/2019Euro400404400403Low
5/8/2019Pounds458462457461Low
5/8/2019Dollar358360358360Low
5/8/2019Euro400405400405Low
2/8/2019Pounds458462458462Low
2/8/2019Dollar358360358360Low
2/8/2019Euro400405400405Low
1/8/2019Pounds458462458462Low
1/8/2019Dollar358360358360Low
1/8/2019Euro402405402405Low
31/07/2019Pounds458463458463Low
31/07/2019Dollar358360358360Low
31/07/2019Euro403407403407Low
30/07/2019Pounds458463458463Low
30/07/2019Dollar358360358360Low
30/07/2019Euro403407403407Low
29/07/2019Pounds458461458463Low
29/07/2019Dollar358360358360Low
29/07/2019Euro402406403407Low
26/07/2019Pounds459463458461Low
26/07/2019Dollar358361358360Low
26/07/2019Euro403406401405Low
25/07/2019Pounds459463459463Low
25/07/2019Dollar358361358361Low
25/07/2019Euro403407403406Low
24/07/2019Pounds459463459463Low
24/07/2019Dollar358361358361Low
24/07/2019Euro404407403407Low
23/07/2019Pounds460464459463Low
23/07/2019Dollar359361358361Low
23/07/2019Euro406410404407Low
22/07/2019Pounds459463459463Low
22/07/2019Dollar358360359361Low
22/07/2019Euro406410406410Low
19/07/2019Pounds459463459463Low
19/07/2019Pounds358360358360Low
19/07/2019Pounds406410406410Low
18/07/2019Pounds458462459463Low
18/07/2019Dollar358360358360Low
18/07/2019Euro403407406410Low
17/07/2019Pounds458462458462Low
17/07/2019Dollar358360358360Low
17/07/2019Euro403407403407Low
16/07/2019Pounds460463458462Low
16/07/2019Dollar359361358360Low
16/07/2019Euro405408403407Low
13/07/2019Pounds460464460463Low
13/07/2019Dollar359361359361Low
13/07/2019Euro405410405408Low
12/7/2019Pounds458463460464Low
12/7/2019Dollar359361359361Low
12/7/2019Euro404407405410Low
11/7/2019Pounds458463458462Low
11/7/2019Dollar359362359361Low
11/7/2019Euro402407405410Low
10/7/2019Pounds458463458463Low
10/7/2019Dollar359361358361Low
10/7/2019Euro401406402405Low
9/7/2019Pounds458465457465Low
9/7/2019Dollar359362359362Low
9/7/2019Euro401405402405Low
8/7/2019Pounds458463460465Low
8/7/2019Dollar359362359362Low
8/7/2019Euro401405401405Low
5/7/2019Pounds458463458463Low
5/7/2019Dollar359362359362Low
5/7/2019Euro401405401405Low
4/7/2019Pounds458463458463Low
4/7/2019Dollar359362359362Low
4/7/2019Euro401405400405Low
3/7/2019Pounds458464458463Low
3/7/2019Dollar359361359362Low
3/7/2019Euro401405401405Low
2/7/2019Pounds458462458463Low
2/7/2019Dollar359361359361Low
2/7/2019Euro398402400404Low
1/7/2019Pounds458462458462Low
1/7/2019Dollar358360359361Low
1/7/2019Euro400403398403Low
28/06/2019Pounds457460457462Low
28/06/2019Dollar358360358360Low
28/06/2019Euro398402400403Low
27/06/2019Pounds458462458462Low
27/06/2019Dollar358360358360Low
27/06/2019Euro398402398402Low
26/06/2019Pounds458463458462Low
26/06/2019Dollar358360358360Low
26/06/2019Euro398402400403Low
25/06/2019Pounds458464458464Low
25/06/2019Dollar358361358361Low
25/06/2019Euro400403398402Low
24/06/2019Pounds458464460465Low
24/06/2019Dollar358361359361Low
24/06/2019Euro398402398403Low
21/06/2019Pounds460465458464Low
21/06/2019Dollar358361358361Low
21/06/2019Euro398402398402Low
20/06/2019Pounds460465468462Low
20/06/2019Dollar358361358361Low
20/06/2019Euro398402400403Low
19/06/2019Pounds460465460465Low
19/06/2019Dollar358361358361Low
19/06/2019Euro398401398402Low
18/06/2019Pounds460465462465Low
18/06/2019Dollar359361358361Low
18/06/2019Euro400403400405Low
17/06/2019Pounds462467462468Low
17/06/2019Dollar358361358361Low
17/06/2019Euro400404400404Low
14/06/2019Pounds426467426467Low
14/06/2019Dollar358361358361Low
14/06/2019Euro400404400404Low
13/06/2019Pounds467471462467Low
13/06/2019Dollar358361358361Low
13/06/2019Euro400404400404Low
12/6/2019Pounds468471467471Low
12/6/2019Dollar358361358361Low
12/6/2019Euro400404400404Low
11/6/2019Pounds465470467471Low
11/6/2019Dollar358361359361Low
11/6/2019Euro400403399402Low
10/6/2019Pounds468472468472Low
10/6/2019Dollar358361358361Low
10/6/2019Euro404400400404Low
7/6/2019Pounds469473467471Low
7/6/2019Dollar358361358360Low
7/6/2019Euro400403398402Low
6/6/2019Pounds468472465470Low
6/6/2019Dollar358360358361Low
6/6/2019Euro398402403400Low
3/6/2019Pounds468472468472Low
3/6/2019Dollar358360358361Low
3/6/2019Euro398402398402Low
31/05/2019Pounds465470470474Low
31/05/2019Dollar358360358360Low
31/05/2019Euro397402400403Low
30/05/2019Pounds470474470474Low
30/05/2019Dollar358360358360Low
30/05/2019Euro400403400403Low
28/05/2019Pounds470474470474Low
28/05/2019Dollar358360358360Low
28/05/2019Euro400403400403Low
27/05/2019Pounds470474470474Low
27/05/2019Dollar358360358360Low
27/05/2019Euro400403400404Low
24/05/2019Pounds470474470474Low
24/05/2019Dollar358360358360Low
24/05/2019Euro400405400405Low
23/05/2019Pounds470474472475Low
23/05/2019Dollar358360358360Low
23/05/2019Euro400405400405Low
22/05/2019Pounds472475472475Low
22/05/2019Dollar358350358360Low
22/05/2019Euro400405400405Low
21/05/2019Pounds472475472473Low
21/05/2019Dollar358360358360Low
21/05/2019Euro400405400405Low
20/05/2019Pounds472475472475Low
20/05/2019Dollar358360358360Low
20/05/2019Euro400405400405Low
17/05/2019Pounds472475472475Low
17/05/2019Dollar358360358360Low
17/05/2019Euro400405400404Low
16/05/2019Pounds472475472475Low
16/05/2019Dollar358360358360Low
16/05/2018Euro400404400404Low
15/05/2019Pounds470475470475Low
15/05/2019Dollar358360358360Low
15/05/2019Euro400404400404Low
13/05/2019Pounds470475470475Low
13/05/2019Dollar358360358360Low
13/05/2019Euro400404400405Low
10/5/2019Pounds470475470475Low
10/5/2019Dollar358360358360Low
10/5/2019Euro400405400405Low
9/5/2019Pounds470475470475Low
9/5/2019Dollar358360358360Low
9/5/2019Euro400405400405Low
29/04/2019Pounds470475470475Low
29/04/2019Dollar358360358360Low
29/04/2019Euro400405400405Low
26/04/2019Pounds470475470475Low
26/04/2019Dollar358360358360Low
26/04/2019Euro400405400405Low
25/04/2019Pounds470475470475Low
25/04/2019Dollar358360358360Low
25/04/2019Euro400405400405Low
24/04/2019Pounds470475472476Low
24/04/2019Dollar358360358360Low
24/04/2019Euro400405400405Low
23/04/2019Pounds474478472476Low
23/04/2019Dollar355360358360Low
23/04/2019Euro390402400405Low
22/04/2019Pounds472476472476Low
22/04/2019Dollar357360358360Low
22/04/2019Euro400405400405Low
19/04/2019Pounds467471470475Low
19/04/2019Dollar355360357360Low
19/04/2019Euro395400402406Low
18/04/2019Pounds470475470475Low
18/04/2019Dollar357360357360Low
18/04/2019Euro402406402406Low
17/04/2019Pounds470475470475Low
17/04/2019Dollar357360357360Low
17/04/2019Euro402406402406Low
16/04/2019Pounds465470470475Low
16/04/2019Dollar360365357360Low
16/04/2019Euro400405402405Low

Data is collated from various black market dealers on the mainland and island of Lagos State where forex is sold. The price quoted daily on this page represents the average price obtained by our Research Team. Our prices are a guide and could be slightly different from the price you get when you eventually decide to buy or sell. This is a daily tracker and updated close of business. See table below for parallel market exchange rate dating to 2019.

Patricia
Continue Reading

FEATURED

Edo, Rivers, Ondo, Katsina, 17 others attract zero investment in 4 months

Lagos topped the list of states that attracted investments during the period under consideration.

Published

on

Ekiti, Jigawa, Abia, 10 others record no investment in 2019

About 21 states in Nigeria attracted zero investments in the last 4 months according to data from the Central Bank of Nigeria.

According to data, the following states, Rivers, Ondo, Edo, Sokoto, Oyo, Abia, and Anambra recorded zero capital importation in the last 4 months. Others are Adamawa, Bauchi, Benue, Borno, Cross River, Delta, Ebonyi, Enugu, Imo, Kastina, Kogi, Kwara, Osun, Oyo, Yobe, and Nassarawa states.

UBA ADS

This information is contained in the Capital importation report obtained from the Central Bank of Nigeria, CBN. The report also detailed the total amount of fresh investments attracted to the Nigerian economy during the period.

[READ MORE: States’ IGR hits N691 billion as Osun, others recorded biggest growth]

Note that most of the states that failed to attract investments during the period under review also failed to attract any investments in 2019. This means that it is either the necessary steps were not taken by the governments, or foreign investors could not find attraction in the states or the environments were simply not conducive for investment.

GTBank 728 x 90

Lagos outshines FCT, Niger, 5 other states

As expected, Lagos topped the list of states that attracted investments during the period under consideration. Lagos attracted the highest amount of $5.39 billion during the period. The investment inflow into the state represents over 87% of the $6.17 billion.

Lagos is followed by the Federal Capital Territory which attracted a total investment inflow of $754.01 million.

Niger State attracted a total investment inflow of $11.60 million. Sokoto State also attracted $2.50 million, while Kaduna State attracted the sum of $1.98 million and Ogun attracted $1.70 million.

Kano and Akwa Ibom states recorded investment inflow of about $700,000 and about $237,000 respectively among others.

The limited investment inflows into some of these states clearly indicate that the states are not really attractive to the investors, even before the pandemic. The Managing Partner, FA Consult, Peter Adebayo, explained that the nation’s economy is not attractive enough to pull investments to states that lack the desired viability.

“Most of the investors are scared of insurgencies in the country, though such is limited to some parts of the nation, except for the well-connected investors that are given special attention,” he said.

app

Back story: Last March, Nairametrics reported that Ekiti, Kogi, Sokoto, Bayelsa, Ebonyi, Gombe, Jigawa, Abia, and five other state governments failed to attract investments in 2019.

Patricia
Continue Reading

Corporate deals

DEAL: Custodian Investment agrees to buy majority stake in UPDC

Custodian Investment announced on Monday to acquire a 51% stake in UPDC, a real estate company owned by UACN.

Published

on

DEAL: Custodian Investment agrees to buy majority stake in UPDC

Custodian Investment announced on Monday to acquire a 51% stake in UPDC, a real estate company owned by UACN. This is confirmed in a press release posted on the website of the Nigerian Stock Exchange.

UACN announced plans to spin off its investment in UPDC in 2019 after multiple years of losses and value accretion threatening to undermine the going concern status of the parent. Last June, UPDC announced it has raised N16 billion from the right issue as it prepared for its unbundling.

UBA ADS

In separate press releases between Custodian and UACN, the duo agreed to a sale of 51% or 9, 465, 584, 668 ordinary shares of UPDC in a transaction that will occur in two phases.

Deal Details

  • An initial sale of 5.1% of UPDC will be sold to Custodian Investment
  • The second sale of 45.9% of UPDC will then be sold to Custodian Investment
  • The companies did not reveal timelines for the consummation of the deal
  • Due to this deal, UACN will stop its unbundling plans for UPDC
  • The deal is subject to regulatory approvals.
  • The purchase consideration was yet to be disclosed, however, UPDC has a market capitalization of N15 billion while Custodian has a Market Capitalization of N30 billion as at press time.

What they are saying

The CEO of Custodian, Wole Oshin and his counterpart in UACN, Folasope Aiyesimoju also commented on the transaction providing reasons for consummating the deal.

  • According to Wole Oshin of Custodian Investment, “The rationale for the Transaction is that Custodian and UAC share the view that their ambitions for capturing opportunity in the real estate industry will be better achieved working in partnership.”
  • Custodian also believes the transaction “will provide Custodian with a platform to capture arising real estate opportunities. It also immediately provides recurring cash flow visibility and attractive yields as a result of its direct exposure to Nigeria’s leading real estate investment trust (“UPDC REIT”) with a track record of profitability and annual dividend distribution which offers a good compliment for our product portfolio.”
  • According to Folasope Aiyesimoju, Group Managing Director of UAC, “UAC received a credible offer from Custodian. The terms of the offer compelled the Board to re-evaluate the planned approach to de-consolidate UPDC and influenced the Board’s decision to proceed with the sale of a portion of UAC’s interest in UPDC to Custodian, effectively putting an end to the UPDC Unbundling.”

What they stand to gain from this deal

The two companies also revealed what they stand to gain from this transaction. According to Custodian, it decided to acquire for the following reasons;

GTBank 728 x 90
  • The company claims it is attracted to the ‘recurring cashflow visibility from UPDC REIT citing the huge cash flow it hopes to enjoy from rental income
  • “The UPDC REIT is highly cash generative with recurring income streams. It has distributed an average of N1.4 billion p.a. over the last five years. Rental income from UPDC REIT is underpinned by leases with first-tier tenants. This presents a good match for our business.”
  • Custodian also mentions the N10 billion in assets for sale on the books of UPDC which it will focus on “realising”.
  • For UAC, while it will no longer be pursuing its deconsolidation strategy for UPDC, it will still retain part ownership of the company but will cease to have it as a subsidiary of UAC operating as a standalone.
  • UPDC will now be a subsidiary of Custodian Investment.

UPDC’s Challenges

  • UPDC reported a loss after tax of N15.8 billion in 2019 and has accumulated over N33 billion in losses since 2016.
  • However, its REIT business has faired better reporting a pre-tax profit of N816.5 million in the first half of 2020. It has consistently declared dividends.
  • UPDC collected about N956 million in cash distribution from UPDC Reit in 2019 alone.
  • UPDC has undergone several restructuring since Themis Capital acquired majority ownership in UACN in 2018. However, it was unable to stop the hemorrhaging of losses.

Patricia
Continue Reading
Advertisement
Advertisement
Patricia
Advertisement
Advertisement
first bank
Advertisement
Heritage bank
Advertisement
devland
Advertisement
devland
Advertisement
GTBank 728 x 90
Advertisement
Advertisement
financial calculator
Advertisement
devland
Advertisement
app
Advertisement