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Shareholders authorise NEM Insurance directors to increase company’s share capital

The plan to increase NEM Insurance’s issued share capital has long been in the works.

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NEM Insurance

The shareholders of NEM Insurance Plc have given approval to a proposed plan to increase the company’s issued share capital from N4.2 billion to N10 billion. This is part of the resolutions that were reached during the insurance firm’s 50th Annual General Meeting (AGM) which held recently.

The detail: According to a statement that was signed by the Company Secretary (Olajumoke Philip-Akede) and issued to the Nigerian Stock Exchange, NEM Insurance’s share capital will be increased with the creation and addition of 11.6 billion ordinary shares valued at N5.8 billion.

To this end, the company’s Memorandum of Association was amended to reflect the increase in issued share capital. A part of the statement by the company said:

“That the Directors be and are hereby authorized to increase the Company’s share capital from N4,200,000, 000 (Four Billion, Two Hundred Million Naira) to N10, 000,000,000 (Ten Billion Naira) by the creation and addition thereto of N5, 800,000,000 (Five Billion, Eight Hundred Million Naira) by the creation and addition thereto of 11,600,000,000 (Eleven Billion, Six Hundred Million) ordinary shares of 50 kobo (Fifty Kobo) each, such new shares to rank pari passu in all respects with the existing ordinary shares in the share capital of the Company and that the directors are hereby authorised to issue such quantities as they may consider sufficient to raise the company’s issued share capital.

“That clause 6 of the Memorandum of Association be and is hereby amended to reflect the new share capital of N10,000,000,000 (ten billion naira) divided into 20,000,000,000 (twenty billion) ordinary shares of 50 kobo (fifty kobo) each.”

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The backstory: Recall that the plan to increase NEM Insurance’s issued share capital has long been in the works. The company’s Chairman, Dr Philip Ayebae, first hinted at this development in June 2019, as Nairametrics reported.

Many insurance firms have recently been increasing their share capital in a bid to meet the deadline set out by the National Insurance Commission (NAICOM) on recapitalisation.  Last week, Nairametrics reported that shareholders of Regency Alliance Insurance Plc would be deliberating on how to increase the company’s share capital from N6 billion to N11 billion, when they meet on July 6th for the firm’s 26th AGM.

Earlier on, shareholders of Niger Insurance Plc gave their approval to a proposed plan by the company’s board to raise additional capital to the tune of N15 billion. You may read more about NAICOM’s recapitalisation requirement for insurance firms by clicking here.

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Back to NEM Insurance for a moment; the firm’s latest earnings report for Q1 2020 showed that gross premium written stood at N7.9 billion compared to N6.8 billion in Q1 2020. The company also reported a profit after tax of about N1 billion in Q1 2020, compared to N849.5 million in Q1 2019.

Meanwhile, NEM Insurance Plc’s share price is currently trading at N2 on the Nigerian Stock Exchange. Year to date, the stock has declined by about -17%, down from the N2.42 share price with which it began 2020.

Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs. He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor. Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan. If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.

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Companies

MTN shareholders have made approximately N1 trillion since April 2020

Shareholders of MTN Nigeria gained close to a trillion naira in less than 7 months.

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MTN Nigeria, MTN Nigeria Communications Plc. begins N100 billion commercial paper issuance today

MTN Nigeria shareholders have gained N986.58 billion since the first trading session in April 2020.

This was uncovered by calculating the difference in the telecommunication giant’s market capitalization of ₦1.832 trillion at the open of trade, for the first trading session in the month of April 2020, and the market capitalization of ₦2.646 trillion at the close of trade in the first trading session in the month of October.

READ: Shell to cut 9,000 jobs globally due to oil price crash as it shifts to clean energy

This gives a whopping N814 billion increase in market capitalization, and this with the dividend the company has paid to shareholders on two occasions between this time period, brings the total gains both realized and unrealized to approximately N1 trillion.

READ: FUGAZ; Nigerian banks considered too big to fail

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Hence, the N814 billion increase in market capitalization translates to the joint gains MTN investors have made from the increase in the shares of the company, as the share price of the company has increased by 44.44% or ₦40.00 between April 1, 2020, and October 2, 2020, with the share price of increasing from ₦90.00 to ₦130.00.

However, the gains MTN NG investors have made from their investments in the telecommunication company, is not limited to the gains driven by the increase in the price of the shares.

READ: World Bank says Nigerian banks are at risk of being destabilised by COVID-19

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Recall that the company declared payment of dividends to its shareholders on two occasions, as investors/shareholders of the company, whose names appear in the Register of Members, as of the close of business on April 17, 2020 and August 14, 2020 were paid a cumulative dividend per share of ₦8.47, for all the outstanding shares of 20,354,513,050 held by the shareholders, and this translates to a total dividend payout of N171 billion by the company to its shareholders.

It is noteworthy that the realized and unrealized gains MTN investors have made from holding the shares over this period stands at N986.58 billion.

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Companies

LASACO Assurance Plc Chairman, Aderinola Disu resigns from the Board of Directors

Aderinola Disu resigned her position as a Director on the Board of LASACO Assurance.

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Lasaco Assurance

Lasaco Assurance Plc has announced the resignation of its former Chairman, Mrs. Aderinola Disu, as a Director on the Board. The resignation took effect from the 8th of September, 2020.

The following information is contained in a press release made available to the public, signed by the company Secretary, Gertrude Olutekunbi, and verified by Nairametrics.

The notification also revealed that, the aforementioned firm has received a provisional approval from the National Insurance Commission (NAICOM) to appoint two other directors.

READ: 3 bank directors resign from NESG in protest to CBN immunity letter

The two newly appointed directors are; Dr (Mrs.) Maria Olateju Phillips, and Prince Jamiu Adio Saka, both appointed to a Non-Executive Director role.

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Profile of the two newly appointed Directors

Chief (Mrs.) Teju Phillips, is a successful Chartered Accountant, who holds an ACCA from England and Wales. She is multilingual and has extensive experience in Management/Consultancy services, that spans across many years in both the public and private sectors. She has served as a Director in Keystone Bank; Director, Lagos State Lottery Board; Honorable Commissioner for Special Duties & Inter-Governmental Relations in Lagos State; Managing Director of Alma Beach Estate Ltd (a subsidiary of Rims Merchant Bank Ltd); Managing Director, Maridot Ventures Ltd. among others.

READ: FIRS retires coordinating directors, appoints new ones

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Prince Jamiu Adio Saka, is an accomplished Insurance professional, having practiced in Canada and Nigeria. He brings to the board over 30 years of experience as a Broker.

Lasaco Assurance Plc, is a listed Nigerian firm that provides life and general insurance services, which includes motor, bond, contractors-all-risk, fire, burglary, aviation, marine, general accident, life, pension schemes, engineering, and oil and gas. The company has a market capitalization of about N2.05 billion and it share price currently trades at N0.28 kobo.

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Companies

MTN: Data subscriptions triggered surge in Q2 2020 Revenues

Data revenues jumped from N56.7 billion to N79.9 billion in the period under review.

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MTN Nigeria, MTN Nigeria Communications Plc. begins N100 billion commercial paper issuance today

Analysis of the MTN’s results shows that revenues surged, due to increased data usage, aided by the COVID-19 pandemic lockdown.

MTN Nigeria Communications Plc (MTN), reported revenues of N638.1 billion in H1 2020, relative to N566.9 billion recorded in the same period in 2019 – a 12.5% increase.

MTN Plc is Nigeria’s premier provider of connectivity, communication, and collaboration solutions. From the very first phone call, made at Maritime House Apapa, Lagos, Nigeria on May 16th, 2001, MTN Plc has been facilitating connections in Nigeria.

READ: COVID-19 boosts Fidson Healthcare Plc’s Q2 2020 performance

The COVID-19 related lockdown affected businesses worldwide, including businesses in Nigeria. This resulted in most business activities being conducted virtually, in a bid to salvage businesses from collapsing. With social distancing rule, came an increased utilization of online mediums for meetings, weddings, social interactions, and everything that couldn’t be done physically. Consequently, people consumed more data compared with the pre-COVID-19 periods.

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According to the latest data available on the NCC website, MTN Plc’s market share of internet subscribers is 42.54%. Its revenue-generating segments include Voice, Data, SMS, Interconnect and Roaming, Handset and Accessories, Digital, Value Added Service, and Other revenues. Aside from SMS, revenues from the other seven segments increased in H1 2020 compared with the previous period last year.

READ: How Apple lost over $500 billion in 12 trading days

Data revenues jumped from N56.7 billion to N79.9 billion in the period under review. The number of port-out subscribers almost doubles port-in subscribers in the period under consideration, so this does not confound the analysis conducted, which revealed that COVID-19 lockdown boosted data revenues.

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The Earnings Per Share (EPS) of the company declined by 4.70% in H1 2020 from N4.89 to N4.66 compared with the same period last year. A 4.68% decline in distributable profit to N94.88 billion in H1 2020, relative to N99.54 billion contributed to this decline in H1 2019.

READ: Finding Balance: GTB’s impeccable gains versus its notable losses

MTN Plc’s shares were listed on the floor of the NSE on 16th May 2019. The shares currently trade at N129 per unit. The highest price for a unit of share in 52 weeks was N132 and the lowest N90. A total of 51,885,740 units was sold in the last seven days trades. Shares outstanding is 20,354,513,050 units and its market capitalization is N2.63 trillion.

Airtel Africa Plc operates in the same sub-sector as MTN Nigeria Plc – Telecommunications Services. Airtel Africa Plc’s share price is N380. The highest price for a unit of share in 52 weeks was N380 and the lowest N298.90. A total of 15,972 units was sold in the last seven days trades. Shares outstanding is 3,758,151,504 units and its market capitalization is N1,428,097.57 trillion.

READ: Floods disrupt operations in Flour Mills’ Sugar Estate

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On the 30th of September 2020, Telecompaper reported that MTN has added MusicTime playlists to its Ayoba app. MTN’s Ayoba platform and MusicTime announced a partnership deal to bring free music to Ayoba app users. MusicTime in Ayoba is now live in Nigeria and some other African countries, including South Africa and Ghana. The app offers users free access to ten playlists with twenty songs each.

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Ayoba is an instant messaging app powered by MTN. With Ayoba, it is possible to chat with anyone, regardless of whether they have the Ayoba app or not. Users who do not have the app, but receive an SMS from an Ayoba user, will be able to respond via SMS, and it will display within the Ayoba user’s chat in the app. Ayoba is available on Android devices (iOS to come later).

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