Connect with us
Advertisement
Oando
Advertisement
Alpha
Advertisement
Hotflex
Advertisement
Binance
Advertisement
Advertisement
UBA
Advertisement
Patricia
Advertisement
Access bank
Advertisement
app

Stock Market

Nestlé S.A acquires shares in its Nigerian subsidiary worth N104 million

The Swiss multinational has increased its stake in Nestlé Nigeria with the acquisition of additional shares worth N104 million.

Published

on

Nestlé S.A, Insider Dealing: Nestlé S.A invests N353.77 million in shares of its Nigerian subsidiary

Switzerland based consumer goods giant, Nestlé S.A has increased its stake in Nestlé Nigeria Plc with the acquisition of shares worth N104 million.

This information was contained in a notification issued by the leading consumer goods company in compliance with the Nigerian Stock Exchange policy on insider dealing.

According to the notification, Nestlé S.A, one of the largest producers of food and beverage specialty products in the world, bought a total of 77,019 additional shares of its Nigerian Subsidiary, at a price of N1349.00 per share.
This puts the total purchase consideration for the shares of Nestlé Nigeria by the Swiss multinational at N103.9 million.

Why this matters

  • Dealings by insiders of listed companies are corporate actions to be disclosed by the management of the company.
  • This is in compliance with NSE’s policy on insider dealing, as the disclosure is key in the effort to ensure transparency and reinforce the trust of the investing public.
  • The purchase cements Nestle position as the majority shareholder of the company, with an ownership stake of 66.5% or 527,080,970 units of the total issued shares of the company (December 31st, 2020).

What you should know

  • Nestlé S.A recently acquired 2.17 million additional shares of its Nigerian subsidiary worth N2.92 billion.
  • A recent report, revealed that the consumer goods behemoth is set to earn a mega N32 billion in dividend from its Nigerian subsidiary in 2020.
  • Nestlé shares on NSE closed at N1350 per share, the company’s shares are down -10.32% YTD.

Omokolade Ajayi is a graduate of Economics, and a certificate holder of the CFA Institute’s Investment Foundation Program. He is a business analyst, and equity market researcher, with wealth of experience as a retail investor.

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Your email address will not be published.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.

Stock Market

Dangote Cement loses N92 billion on NGX, as investors digest Q1 2021 financial results

The NGX All-Share Index and market capitalization declined by 0.92%, as shares of Dangote Cement and MTN declined.

Published

on

Dangote powers cement plant in Tanzania with gas turbines, Dangote Cement Plc records 34.20% increase in 2020 Q3 revenues, Dangote Cement market capitalization increased by 28% to cross N3 trillion mark in November

The stocks of top cement companies on Wednesday closed in the downline as investors sold off stakes in the shares of Dangote Cement despite impressive Q1 2021 results.

Data tracked on the Nigerian Stock Exchange revealed that the shares of Nigeria’s most capitalized company lost a whopping N92 billion in market value, at the back of a 2.49% decline in the share price of the leading cement producer.

On the flip side, shares of BUA Cement, another key producer in the Nigerian cement industry closed flat on the exchange today, while Lafarge Africa lost a meagre N1.6 billion of its market capitalization, triggered by a 0.47% decline in its share price.

The impact of this decline on the NSE Industrial Index

The 2.49% decline in the shares of Dangote Cement weighed heavily on the Industrial index, an index that tracks the performance of industrial companies listed on the Nigerian Stock Exchange.

At the end of the market today, the industrial index closed lower at 1918.94 index points, driven by the N92 billion market value loss which Dangote Cement suffered today on the exchange.

The index depreciated by 1.19% to print its biggest loss in a day since the 3oth of March when it depreciated by 1.90%.

Decline in Dangote Cement and MTN Nigeria shares weighed on the Nigerian Stock Exchange

The Nigerian Stock Exchange NGX, closed on a negative note today largely occasioned by the decline in the shares of MTN Nigeria and Dangote Cement.

The shares of MTN Nigeria suffered a market value decline of 4.65%, to close the day lower at N162 per share as investors continue to price in the impact of regulatory restrictions on new SIM sales and activations on the revenue and earning power of the company. Mobile subscribers on the MTN’s network declined by 5 million to 71.5 million in the first quarter of 2021.

Hotflex

This bearish sentiments in the shares of MTN and Dangote Cement both led to the NGX All-Share Index and market capitalization decline of 0.92%, to close lower at 39,111.30 index points and N20.468 trillion respectively.

Continue Reading

Stock Market

Conoil, Courtville soar as NGX ASI plummets

The All-Share Index decreased by -0.81% to close at 39,114.73 from 39,433.81.

Published

on

CONOIL consolidates success despite industry worries

The Nigerian Stock Exchange market maintained the bearish momentum speculated by analysts. The All-Share Index decreased by -0.81% to close at 39,114.73 from 39,433.81.

• Nigerian Stock Exchange market value currently stands at N20.64 Trillion. Its Year-to-Date (YTD) returns currently stand at -2.87%.
• The market breadth closed negative with the bears as CONOIL led 25 Gainers, and 20 Losers topped by BOCGAS showing a hint of consolation.

Top gainers

1. CONOIL up +10.00% to close at N18.70
2. COURTVILLE up +10.00% to close at N0.22
3. SEPLAT up +9.99% to close at N604.40
4. LINKASSURE up +8.62% to close at N0.63
5. ACCESS up +5.19% to close at N8.10

Top losers

1. BOCGAS down -9.99% to close at N12.25
2. LIVESTOCK down -9.90% to close at N1.73
3. SCOA down -9.66% to close at N2.15
4. REDSTAREX down -9.59% to close at N3.11
5. REGALINS down -9.38% to close at N0.29

Outlook

The Nigerian stock market continued the bearish run held yesterday as it posted losses once again at the end of the trading session today.

Hotflex

• Market sentiments tend toward consolidations as the NGX ASI closes with 25 Gainers and 20 Losers.
• Nairametrics advises cautious buying in this era of growing uncertainties.

Continue Reading

  





Nairametrics | Company Earnings

Access our Live Feed portal for the latest company earnings as they drop.