FBN Holdings Plc has announced the completion of its divestment from FBN Insurance Ltd. According to a public disclosure that was sent to the Nigerian Stock Exchange, FBN Holdings’ previously-held 65% stake in FBN Insurance was completely sold to Sanlam Emerging Markets (Proprietary) Ltd. The effective divestment date was June 1st, 2020.
Following the divestment, Sanlam Emerging Markets (Proprietary) Ltd will now take over full ownership of the insurance company and its subsidiary — FBN General Insurance Ltd. No mention was made about how much the transaction was valued at.
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In the meantime, both FBN Holdings and Sanlam Emerging Markets Ltd have “activated the Shareholders Agreement which provided pre-emptive rights to Sanlam,” the statement said.
In a separate statement that was made available to Nairametrics, FBN Holdings’ CEO, U.K Eke (MFR), was quoted to have said:
“The divestment is in line with the Group’s medium to long term strategic objectives. This will ultimately improve our shareholders’ wellbeing and deliver greater value to all the stakeholders.”
Heinie Werth, the CEO of Sanlam Emerging Markets (Proprietary) Limited, also commented. He said:
“Over the years we have enjoyed a mutually beneficial partnership with FBNH, and we will continue to cooperate with them in the future. Sanlam exercised its pre-emptive right to acquire the remaining shareholding of FBNI and in line with our partnership philosophy that underpins our business model, we will introduce local shareholding at an appropriate time in the future. This transaction is evidence of our belief and confidence in the value and future of the business, as well as the skilled management team and staff. Moreover, we are committed to Nigeria and view it as a key market on the continent.”
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Recall that FBN Holdings Plc first hinted at the deal in April this year when it announced that talks were ongoing with Sanlam Emerging Markets and regulators.
DEAL: uLesson raises $7.5 million Series A round
uLesson has announced that it has closed a $7.5M Series A round.
uLesson, a Nigerian educational learning platform that leverages best in class teachers, media, and technology solutions to create high-quality, affordable and accessible education for African students, announced that it has closed a $7.5M Series A round.
This funding round was led by US-based Owl Ventures, which is focused on education as an investment. It was also backed by existing investors — Founder Collective and TLcom .
Founded by Sim Shagaya, uLesson curates personalised, curriculum-relevant content via mobile and PC devices for students in the K-7 to K-12 segment across the continent. Students can access the lessons via streaming and SD cards, where they can download and store the content, allowing them to study remotely, removing challenges around internet access limitations and costs.
According to Sim Shagaya,
- “The uLesson app has now been downloaded a million times with paying users from at least 7 countries (including countries we don’t formally serve). On average, learners spend around 77 minutes on the app daily — a figure that exceeds the engagement levels on most social networking apps.
- “Our goal is that ten years from now, K-12 education on the continent will bear little semblance to what you see today. But it won’t just be different, it will be better on most dimensions and much more affordable.
- “We also believe that the impact borne of the marriage of education and technology will be greater on the African continent than any other place in the world.”
This funding will be deployed to power uLesson’s expansion into Eastern & Southern Africa, as well as secure new talent and build its product development and production infrastructure.
CAP and Portland Paints obtain Federal High Court approval on proposed scheme merger
A Federal High Court approved the proposed scheme merger between Chemical Allied Products Plc and Portland Paints Plc.
The Judicial Divison of the Federal High Court has approved the proposed scheme merger between Chemical Allied Products Plc and Portland Paints Plc, and other matters connected therewith.
In line with this, the Federal High Court ordered that a meeting of the holders of the fully paid ordinary shares of Portland Paints and Products Nigeria be convened and held for the purpose of considering and approving a Scheme of Merger between the concerned entities.
Portland Paints disclosed this on the NSE before the open of trade today.
The statement said upon approval by the shareholders at the court-ordered meeting, which will be held at 12:00 pm on Thursday, 18 February 2021 at Radisson Blu Hotel, the subjoined resolutions of the Scheme Merger shall be effected.
Overview of the Scheme Merger and options offered to shareholders
For the purpose of giving effect to the Merger as would be agreed between the Company and the Holders of the Fully Paid Ordinary Shares of Portland Paint Plc and Chemical and Allied Products PLC at the court-ordered meeting, shareholders of Portland Paint Plc at the close of business on the Terminal Date shall be offered the option:
- To receive a Cash Consideration of N2.90 for each ordinary share of N0.50 held in Portland Paints as at close of business on the Terminal Date.
- Or be allotted 1 ordinary share of N0.50 each in the share capital of CAP (credited as fully paid) in exchange for every 8 ordinary shares of N0.50 each held in Portland Paints.
Implied impact of the Scheme Merger between CAP and Portland Paints
Upon the Scheme becoming effective, the following modification shall be made:
- All assets and liabilities of Portland Paints including but not limited to real property, intellectual property rights, permits, credits, allowances, equipment and machinery, plant, fixtures and fittings, motor vehicles and businesses, shall be transferred to CAP.
- All employees and undertakings rights, powers and duties of a personal character, which could not generally be assigned or performed vicariously, of the Company shall be transferred to CAP.
- All legal proceedings, claims and litigations pending or contemplated by or against the Company be continued by or against CAP.
- The entire share capital of the Company shall be cancelled, and the Company shall be dissolved without being wound up.
- All contracts of the Company shall continue to be in force and effect in accordance with their respective terms and conditions, and CAP shall assume all rights and obligations of the Company under all such contracts.
- All monies standing to the credit of the Company at banks and with other debtors within and outside Nigeria be held to the credit of CAP.
FMDQ Securities Exchange admits Total Nigeria Plc and 2 others CPs
FMDQ has announced the admission of three new Commercial papers.
FMDQ Securities Exchange Limited has announced the quotation of Total Nigeria Plc, Mixta Real Estate and Valency Agro Nigeria Limited Commercial Papers under its platform.
According to the News Agency of Nigeria, the disclosure was made by the FMDQ Group in a corporate statement issued, sequel to the fulfilment of all regulatory requirements.
- The statement explained that FMDQ admitted Total Nigeria Plc., N2.25 billion Series 1 and N12.75 billion Series 2 Commercial Papers (CP) under its N30 billion CP Issuance Programme.
- It also approved the quotation of Mixta Real Estate Plc., N2 billion Series 32 CP under its N20 billion CP Issuance Programme.
- In the same vein, the FMDQ Group also approved the registration of Valency Agro Nigeria Ltd., N20 billion CP programme on its platform.
What they are saying
Commenting on the quotation of the issue, the Managing Director of Total Nigeria, Mr Imrane Barry, explained that:
- “The programme was set up to enable the company further broaden its sources of capital by accessing funding from the Nigerian debt capital markets, while also reducing its overall funding costs.”
In his remarks, the Managing Director, Valency International Pte Ltd., Mr Sunil Dhanuka, said:
- “We are glad for the successful registration of Valency Agro’s, N20 billion CP Issuance Programme. In line with our vision to grow within the agricultural value chain in Nigeria, Valency Agro is committed to ensuring the growth of the agriculture sector through our deep involvement in Cashew, Sesame, Cocoa and other produce.
- “Proceeds from this CP Programme will be used toward meeting the midterm working capital requirements of the various agricultural produce and on value addition prior to export.”
What you should know
- Nairametrics reported the admission of Axxela N11.5 billion bond on FMDQ platform.
- Total Nigeria Plc had earlier issued a debut commercial paper, which was aimed at supporting the sector and reactivating the economy. This CP was halted by the COVID-19 pandemic.
- Despite the disruption, the debut issuance attracted sizeable demand from a lot of investors, leading to oversubscription.
- The financial advisers of the debut issuance scheme are Stanbic IBTC Capital Limited and FBNQuest Merchant Bank Limited.
- Commercial paper is a money-market security issued (sold) by large corporations to obtain funds to meet short-term debt obligations (for example, payroll) and is backed only by an issuing bank or company which promises to pay the face amount on the maturity date specified on the note.