• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Companies Corporate deals

DEAL: FMDQ set to acquire significant stake in CSCS

Nairametrics by Nairametrics
December 30, 2021
in Corporate deals, Exclusives
AFEX to partner with FMDQ and Dubai Commodities Exchange, Nigerian Mortgage Refinance Company, Flour Mills list bond on FMDQ Exchange.

Bola Onadele Koko, CEO FMDQ

Share on FacebookShare on TwitterShare on Linkedin

FMDQ Group, Nigeria’s leading market for fixed income securities and forex, and operators of FMDQOTC has reached an agreement to acquire over 20% of CSCS. The value of the transaction is currently undisclosed.

According to sources with knowledge of the transaction, the FMDQ Group will buyout shares owned by Leadway Insurance and from Artemis Ltd a vehicle owned by Verod Capital. The two entities own 16.6% and 5% respectively delivering a combined 21.6% ownership of CSCS.

The deal is subject to the approval of the Security & Exchange Commission and the Federal Competition and Consumer Protection Commission (FCCPC). Nairametrics understands the transaction is being viewed positively by regulators as it is expected to deepen capital market operations and enhance competition amongst exchanges, with both outcomes viewed as good for consumers and businesses.

RelatedStories

Meet Dahiru Mangal, a Nigerian billionaire businessman who started out as a truck driver

Meet Dahiru Mangal, a Nigerian billionaire businessman who started out as a truck driver

June 3, 2023
How Deola Sagoe left her father's company, Elizade Motors, to build a global fashion brand

How Deola Sagoe left her father’s company, Elizade Motors, to build a global fashion brand

May 20, 2023

Shareholders and Investors in CSCS are likely to view the deal as a positive development for the capital market considering the experience and pedigree of a shareholder like FMDQ.

FMDQ acquisition of major shares in CSCS provides the latter with a strong shareholder with enough experience, capacity, and capital to help drive growth in an increasingly changing capital market that requires significant investment in technology and manpower.

Having the FMDQ on board also supports CSCS drive to increase revenues from its core depository, clearing, and settlement business as well as provide it with the right partner in its quest to seek new growth opportunities especially on the enterprise front. CSCS makes most of its money from transaction fees and its depository business.

Some market participants who spoke to Nairametrics opine this deal could expand the revenue base of the CSCS, leveraging on FDMQ economies of scale to secure lucrative deals that will provide improved shareholder returns. CSCS has often relied on its investment income to shore up revenue especially when there is a prolonged bearish stock market where demand for equities falls.

FMDQ is already one of Africa’s leading Africa’s financial market infrastructure groups with ownership in a host of companies offering services that are vertically integrated into the financial market system. This deal appears to align with the company’s core vision and could propel CSCS as one of the leading clearing, depository, clearing, and settlement companies in Africa.

Another Exciting Deal

This is yet another deal that will excite investors in a Nigerian capital market that has seen a flurry of corporate transactions being announced in the last quarter of 2021. Shares of CSCS currently trade on the NASDOTC and have gained over 183% in the last year and could surge as is typical with deals like this.

Deals like this are a welcome development, especially where the investors are experienced with skin in the game. FMDQ also has deep pockets with over N329 billion in balance sheet size including N27 billion in cash. At the current share price of N17 per share, the deal cost FMDQ over N17 billion without adding an off-market premium which is typically associated with such deals, CSCS market valuation is over N85 billion.

About CSCS

CSCS an abbreviation for Central Security and Clearing System and is a leading clearing house for capital market operations in Africa’s largest economy. Central Securities Depository (CSD) licensed to carry on the depository, clearing, and settlement of all transactions in the Nigerian Capital Market.

CSCS currently (as of December 2020 annual report) has 6 shareholders with over 5% ownership, and this includes the Nigerian Exchange Group (29.19%). Access Bank (7.5%), UBA (5.37%, Artemis Ltd (16.6%), Ess-ay Investments Ltd (10%), and Leadway Insurance (5%)

CSCS reported revenue of N12 billion in 2020 compared to N9.2 billion a year earlier while also reported profit after tax of N6.9 billion compared to N4.9 billion a year earlier. The company also paid a dividend of N5.85 billion in 2020 or N1.17 per share (2019: 86 kobo).

About FMDQ

FMDQ Holdings PLC (FMDQ Group or FMDQ), is Africa’s first vertically integrated financial market infrastructure group providing registration, listing, quotation, and noting services; integrated trading, clearing & central counterparty, settlement, risk management for financial market transactions; and depository of securities; as well as data and information services, across the debt capital, foreign exchange, derivatives, and equity markets, through its wholly-owned subsidiaries – FMDQ Securities Exchange Limited, FMDQ Clear Limited, FMDQ Depository Limited, FMDQ Private Markets Limited and iQx Consult Limited

FMDQ Group reported revenue of N31 billion in 2020 representing a 44% increase from the N21.46 billion reported in 2019. According to the company, the increase in revenue was largely driven by the intensified product and market development activities of FMDQ Group’s “gateway” subsidiary, FMDQ Exchange, and the post-trade services rendered by the Group’s clearing house subsidiary, FMDQ Clear.

The company also reported a profit after tax of N12.9 billion in 2020 compared to N10.6 billion same period in 2019.

 

 

Tags: Featured
Nairametrics

Nairametrics

Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

Related Posts

Meet Dahiru Mangal, a Nigerian billionaire businessman who started out as a truck driver
Profiles

Meet Dahiru Mangal, a Nigerian billionaire businessman who started out as a truck driver

June 3, 2023
How Deola Sagoe left her father's company, Elizade Motors, to build a global fashion brand
Profiles

How Deola Sagoe left her father’s company, Elizade Motors, to build a global fashion brand

May 20, 2023
Nigerian weddings
Lifestyle

The economics of Nigerian weddings

April 30, 2023
CBN reduces over-the-counter withdrawals to N100k, N500k per week for individuals, companies
Currencies

Updated: Tracker of CBN’s monetary policy announcements since 2020

December 10, 2022
Redesigning or sensitizing; what's the way to go?
Economy

CBN’s Intervention Funds to private sector rises to N4.8 trillion as of November 2022

November 28, 2022
SWOOTs capitalization up by N122 billion
Equities

SWOOTs capitalization up by N122 billion

November 20, 2022
Next Post
South Korea to tax crypto gifts in 2022 

South Korea to tax crypto gifts in 2022 

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • FIRS begins renegotiation of double taxation treaty with Netherlands amid tax reforms 
  • Analysts project fastest GDP growth since 2014, pinpoint stocks set to rally in H2 2025 
  • Nigeria rules out nuclear weapons pursuit, says focus is on addressing poverty and climate change 

Follow us on social media:

Recent News

FIRS begins renegotiation of double taxation treaty with Netherlands amid tax reforms 

FIRS begins renegotiation of double taxation treaty with Netherlands amid tax reforms 

July 7, 2025
GDP

Analysts project fastest GDP growth since 2014, pinpoint stocks set to rally in H2 2025 

July 7, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics