Companies
C&I Leasing gets approval to list N539 million worth rights issue
C&I Leasing Plc has obtained approval of the Securities Exchange Commission (“SEC) to open subscription of a rights issue of N539 million.
C&I Leasing Plc has obtained approval of the Securities Exchange Commission (“SEC) to open subscription of a rights issue.
The Details: The rights issue is of Five Hundred and Thirty-Nine Million, Three Thousand, Three Hundred and Thirty Three (539,003,333) ordinary shares of Fifty Kobo (N0.50) each at Six Naira (N6.00) per share, on the basis of four (4) new ordinary shares for every three (3) ordinary shares held.
In a notification sent to dealing members of the stock market, the firm disclosed that the Qualification Date for the rights issue was scheduled for Wednesday, September 4, 2019.
Based on the approval obtained from SEC, the offer opened on Monday, 18th of November 2019 and is expected to close on Friday 27th of December 2019.
The leasing firm noted that the rights issue e-Circular was being distributed to shareholders. It also admonished the shareholders to access the rights issue e-Circular on the website of the company’s Registrars, Centurion Registrars at (http://centurionregistrars.com/).
[READ MORE: Consolidated Hallmark to raise N4.5 billion through rights issue]
The firm also added that shareholders should contact their stockbrokers and other financial advisers for more details regarding the offer.
What this means: It is of common knowledge that a rights issue is a way for companies to raise capital. In this regard, capital is raised when existing shareholders pay for the new shares that are being issued.
Companies may use the raised capital to acquire assets, make a take-over, repay debts or save itself from bankruptcy. Although a company can raise capital in other ways, such as borrowing from banks or issuing bonds, there can be times when the companies may be reluctant to seek credits from banks because of the high-interest rate incurred by loans.
A look into the company’s financials: C&I Leasing consolidated financial statements for the period ended September 30, 2019, showed that the company experienced a slight decline in its profit after tax.
Gross earnings: In the first three quarters of 2019, the firm recorded N26.55 billion in gross earnings, compared to N19.86 billion recorded as at the third quarter of 2018, representing an increase of 33.67%.
Profit Before Tax: Profit before tax for the logistics firm stood at N1.20 billion as at the third quarter of 2019, compared to N1.28 billion recorded at the end of the third quarter of 2018, representing a decline of 6.67%.
Profit After Tax: The firm recorded a profit of N1.12 billion for the nine-month period of 2019, compared to N1.24 billion recorded at the end of the nine months period for 2018. This represents a 9.94% decline in profit.
[READ ALSO: Rights issue dominates quoted companies capital raise in 3 years]
Earnings Per Share: C&I Leasing recorded N277.20 as earnings per share as at the end of the third quarter of 2019 compared to N76.95 as at the end of the third quarter of 2018.
About C&I Leasing Group Plc: C&I Leasing Group Plc is a Nigerian public limited maritime company. It was formed in 1990 as a private company and converted into a public company listed on the Nigerian Stock Exchange in 1997. The business provides technology-based, end-to-end tracking and other logistics and fleet management solutions for vehicles and various marine vessels. The service conglomerate is managed along three business lines.
Companies
Unilever announces the completion of its Group legal structure
Unilever PLC has announced the completion of the unification of its Group legal structure
Unilever, the parent company of Unilever Nigeria Plc, has announced the completion of the unification of its Group legal structure under a single parent company, Unilever Plc.
According to the press release issued by the company, from today, 30th November 2020 and for the first time in its history, Unilever now trades with one market capitalisation, one class of shares, and one global pool of liquidity, whilst also maintaining the Group’s listings on the Amsterdam, London, and New York stock exchanges.
What they are saying
Nils Andersen, Chairman of Unilever, said: “This is an important day for Unilever and we would like to thank our shareholders for their strong support of our Unification proposals, which gives us greater flexibility for strategic portfolio change, remove complexity, and further improve governance.
“There will be no change to the operations, locations, activities or staffing levels in either the Netherlands or the United Kingdom as a result of Unification. The headquarters of Unilever’s Foods & Refreshment Division will continue to be based in Rotterdam and the Home Care and Beauty & Personal Care Divisions will continue to be headquartered in the United Kingdom.”
What to expect
This development has no impact on the going concern of Unilever Nigeria Plc, the shareholding structure, as well as the free float shares of the company on NSE, which totals 1,491,985,247 — representing 25.97% of the ordinary shares of the company issued and fully paid for by investors.
(READ MORE: Q1 2020 Unaudited Report: Unilever Nigeria records N13.3 billion revenue)
However, upon the completion of the unification of the Group’s Legal Structure, Unilever overseas under this structure remains in control of the 74.03% ordinary shares of the Nigerian subsidiary.
What you should know
- For investors on the London Stock Exchange, Euronext Amsterdam, and the New York Stock Exchange, dealings in new Unilever Plc shares commenced today, as the new Unilever Plc shares will be admitted to the Premium Listing segment of the Official List of the UK Financial Conduct Authority (“FCA”) and to trading on the London Stock Exchange’s Main Market for listed securities, with the ticker “ULVR”.
- Unilever Plc shares will also be admitted to listing and to trading on Euronext in Amsterdam under the ticker “UNA” today. It is expected that Unilever Plc ADSs will be admitted to trading on the New York Stock Exchange this afternoon.
- Following the issue and allotment of 1,460,713,122 new Unilever Plc shares pursuant to Unification, which represent 55.56% of the total number of Plc shares, Unilever Plc’s total issued ordinary share capital today consists of 2,629,243,772 ordinary shares of 3 1/9 pence each.
- As part of Unification, Unilever NV ceased to exist yesterday, 29 November 2020, which means there has been no dealings and there will be no further dealings in any Unilever NV securities (including Unilever NV shares on Euronext in Amsterdam).
Companies
Flour Mills GMD purchased additional shares worth N209.29 million in 3 days
Paul Miyonmide Gbedebo acquired 7,486,719 additional shares of Flour Mills, worth ₦209.3 million in 3 days.
The Group Managing Director of Flour Mills Nigeria Plc (FMN), Paul Miyonmide Gbededo, purchased a total of 7,486,719 additional shares of the company, worth ₦209.29 million.
According to the notifications issued between 17th and 19th of November by the company’s Secretary, Mr Joseph Umolu, the GMD purchased the ordinary shares of Flour Mills Nigeria in this order:
- On 17th November, 1,949,839 additional shares worth N54.59 million, at a price of N28.00 per share.
- On 18th November, 4,200,852 additional shares worth N117.62 million, at a price of N28.00 per share.
- On 19th November, 1,336,028 additional shares worth N37.07 million, at a price of N27.75 per share.
(READ MORE: Nestlé S.A buys shares of its Nigerian subsidiary worth ₦463.46 million in a week)
This brings the total number of shares of Flour Mills Nigeria Plc purchased by the GMD to 7,486,719. The total consideration for these shares is put at N209.29 million.
What you should know
In line with the information contained in the financial statements of the company, as of 30th September 2020, Mr. Gbedebo had a direct shareholding of 2,720,109 shares.
Hence, with the 7,486,719 additional units acquired, his total shareholding now stands at 10,206,828 shares, which is worth N285.79 million at the current share price of N28.00.
What this means
The purchase of the shares of Flour Mills Nigeria Plc further cements Mr. Paul Gbedebo’s position as one of its majority shareholders.
Companies
ValuAlliance distributes value fund of N10 per unit for H1, 2020
ValuAlliance Value Fund has declared the distribution to unit holders, the sum of N10.00/unit for the financial year ended June 30, 2020.
ValuAlliance Value Fund (“Value Fund” or the “Fund”), formerly called the SIM Capital Alliance Value Fund, has declared the distribution to unit holders, the sum of N10.00/unit for the financial year ended June 30, 2020.
This is according to a notification by the firm, sent to the Nigerian Stock Exchange market and seen by Nairametrics.
The latest distribution indicates a decline of N1/unit when compared to its distribution in the corresponding period last year.
READ MORE: SEC reinstates DEAP Capital’s Board
The key highlights of the recent notification include:
- Annual General Meeting Date: 21st December 2020
- AGM Venue: 33A Alfred Rewane (Kingsway) Road, Ikoyi, Lagos, Nigeria
- Proposed Distribution: ₦10/unit
- Qualification Date: 9th December 2020
- Closure of Register Date: 10th December 2020
- Payment Date: 23rd December 2020
READ: Exxon Mobil to cut 14,000 jobs as pandemic hit oil demand, prices
What you should know
- The Value Fund is a closed-end Fund registered and regulated by the Securities and Exchange Commission (SEC), whose units are listed on the main board of the NSE.
- The Value Fund for the year ended June 30, 2020 achieved a growth of 2.83% Year-on-Year, with a cumulative return of 125.32% since inception, which translates to a 9-year Internal Rate of Return (IRR) of 12.06%.
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