Camey & Rock Business Consulting Limited has finally executed its share purchase agreement with the board of Resort Savings and Loans Plc, worth N4.3 billion.
This is according to a notification sent by the latter to the Nigerian Stock Exchange market yesterday and seen by Nairametrics.
The cash involved in the deal is scheduled to be injected in tranches. Also, activities related to the transactions are still ongoing.
In order to resolve some administrative and basic regulatory issues, Camey & Rock called for an extension from CBN to enable it conclude the recapitalization exercise of the bank outside the deadline of 31 December 2020 to 30 June 2021.
The call comes at a time when the investors plan to inject the next tranche of cash into the bank.
The notification also revealed that the investors (Camey & Rock) have so far, assisted in motivating staff resolution and arrangement of some critical financial obligations, towards the filing of outstanding financial statements and relocation of the bank’s head office to 12, Boyle Street, Lagos.
What they are saying: A part of the recent disclosure reads: “The Board of Resort Savings and Loans Plc (the bank) wishes to notify the Nigerian Stock Exchange and investing public on the updates on the Bank’s recapitalization exercise.
“The Bank has executed a Share Purchase Agreement with Camey & Rock Business Consulting Limited (Camey & Rock or the investor) to the tune of N4.3billion, following Camey & Rock’s strategic equity investment in the Bank. The cash will be injected into the Bank in tranches.”
Why it matters: The recent announcement will help recapitalize the bank. In addition, the board and management firmly believe that the strategic investment will change the face of the bank, repositioning it in the committee of financial services providers in Nigeria, and grow its capacity with consequent effect in increasing the wealth of stakeholders.
Bearish grip as S&P 500 and the Dow plunges
The Dow Jones Industrial Average had its worst day since February.
After a record high on Friday, the S&P 500 fell for a second day, tech stocks dropped on Tuesday but gradually recovered, causing the wider market to sell-off. Home Depot, Chevron, and Goldman Sachs all fell 1.4 percent, dragging down the Dow Jones Industrial Average. The Dow Jones Industrial Average had its worst day since February.
After Monday’s decline, the S&P 500 fell 0.9 percent, but avoided a second consecutive 1 percent loss. The Nasdaq Composite was the relative outperformer of the day, closing just 0.1 percent after falling more than 2% at its session low.
Treasury yields increased, and the dollar fell to its lowest point of the year. Investors are looking for hints about the business outlook in the form of an inflation report and government bond auctions in the United States.
According to Dow Jones forecasts, the consumer price index in April will rise 0.2 percent from the previous month, reflecting a 3.6 percent increase over the previous year. This will be the biggest increase in the headline consumer price index since September 2011.
In April, the consumer price index except food and energy is forecasted to increase 0.3 percent, bringing the 12-month total to 2.3 percent. According to the Department of Labor, the consumer price index increased 0.6 percent from the previous month and 2.6 percent from a year earlier in March.
Investors are concerned about the possibility of inflation, but Federal Reserve Chair, Jerome Powell has stated that any increase in inflation is temporary.
Strategists encouraged investors to stay the course amid this week’s wild market swings. Following two days of losses, the S&P 500 is still up 10.5 percent for the year, though the tech-heavy Nasdaq’s gain has been reduced to 3.9 percent.
PRESCO and MEYER upsurges as FCMB and CHIPLC plunge
The All-Share Index increased by +0.21% to close at 39,395.71 from 39,312.74.
The Nigerian Stock Exchange market maintained a bullish recovery as the trading session begins this week. This surge was bolstered by gains made by PRESCO and MANSARD amongst others. The All-Share Index increased by +0.21% to close at 39,395.71 from 39,312.74.
- Nigerian Stock Exchange market value currently stands at N20.5 Trillion. Its Year-to-Date (YTD) returns currently stand at -2.17%.
- The market closed positive with the bulls as MEYER led 17 Gainers, and 18 Losers topped by CHIPLC showing a hint of consolation.
- MEYER up +9.62% to close at N0.57
- PRESCO up +9.58% to close at N78.90
- UNITYBNK up +9.09% to close at N0.60
- UAC-PROP up +7.89% to close at N0.82
- COURTVILLE up +5.00% to close at N0.21
- CHIPLC down -9.52% to close at N0.38
- ROYALEX down -7.69% to close at N0.60
- HONYFLOUR down -5.83% to close at N1.13
- CUTIX down -4.98% to close at N2.10
- FCMB down -3.97% to close at N2.90
The Nigerian Stock Market maintained the recovery as MEYER and PRESCO made an appearance for the second consecutive time pushing the NGX ASI upwards at the end of the trading session today.
- Market sentiments tend toward a bullish momentum as the NGX ASI closed with 17 Gainers and 18 Losers.
- Nairametrics advises cautious buying in this era of growing uncertainties.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- Seplat Petroleum Development Company postpones Q1 2021 dividend payment date.
- FMDQ approves quotation of MTN’s Commercial Paper worth N73.5 billion.
- MTN Nigeria issues a 7-Year Series 1 bond worth N110 billion.
- Caverton Offshore Support Group reports profit after tax of N520 million in Q1 2021.
- Okomu Oil proposes dividend worth N6.7 billion for shareholders.