Good day and welcome to Nairametrics’ Corporate News Roundup, brought to you courtesy of Quidax. This is a summary of the major company news stories that dominated the headlines last week.
After much anticipation, Nigerians finally went out over the weekend to vote and choose a new president and federal lawmakers. In the days leading to Saturday’s elections, there were lots of intrigues, rumours and speculations, one of which is that commercial banks would shut down operations. But that rumour was refuted. Let’s begin our roundup with that story.
Banks refute claims: Last week, the Nigerian Association of Corporate Affairs Managers of Banks (ACAMB) released a statement refuting claims that banks would shut down for Saturday’s election. The statement emphasised that all bank branches and e-channels will remain operational.
The statement also stressed that commercial banks did not receive any directive from the Central Bank of Nigeria to shut down. This clarification was important, considering the circumstances surrounding it. One of these circumstances is the issue of cash scarcity which many people worried could affect voters’ turnout. Clarifying the rumour helped to calm people down.
MTN’s network freeze: In a similar development, MTN Nigeria informed its customers that there will be a ‘network freeze’ during the forthcoming general elections. The telco also allayed people’s fears following the announcement, explaining that ‘network freeze’ is a common practice intended to keep the network stable.
Nairametrics reported that during a network freeze, the operators suspend any maintenance work that could disrupt the network or affect the customer experience.
Dana Air’s flight cancellations: Dana Air confirmed that it cancelled its scheduled flights because of aircraft unavailability. Apparently, four out of the five aircraft operated by Dana Air are currently undergoing checkups.
In the statement signed by the airline’s Communication Manager, Kingsley Ezenwa, Dana Air apologised to clients who have been affected by the cancellations. He added that efforts were being made to remedy the situation.
FEDA finalises Geregu deal: Geregu Power Plc announced last week that 5% of its shares (some 125.01 million units of shares) have finally been acquired by Afreximbank’s impact development arm, Fund for Export Development Africa (FEDA). The shares were valued at N12.5 billion and were consummated in off-market trades.
FEDA finalised the deal after obtaining internal approvals and undergoing a due diligence process.
How Geregu’s investors reacted: Investors in Geregu Power Plc reacted positively to the news that FEDA had finalised its acquisition of a 5% minority stake. Nairametrics reported that there was positive investor sentiment, resulting in the Geregu stock gaining in the stock market.
Checks by Nairametrics showed that the company’s stock price rose even as investors gained.
Mainstream Energy wins bid: Mainstream Energy Solutions Limited (MESL) was confirmed by the Bureau of Public Enterprises (BPE) as the preferred bidder to operate and manage the Zungeru Hydroelectric Power plant in Niger State.
A statement seen by Nairametrics said Mainstream Energy won the bid to operate and manage the hydroelectric power station by offering $70 million annually for the next 30 years.
BOWS Nigeria takes over Courteville: Courteville Business Solutions Plc announced last week that BOWS Nigeria Limited has obtained approval from the Securities and Exchange Commission (SEC) to take over the company through the acquisition of 1,171,939,459 units of shares, equivalent to 32.99% stake.
Nairametrics reported that BOWS Nigeria will pay 48 kobo per ordinary share to acquire the shares from minority shareholders. This would help it to take over 100% of the company.
Vitafoams clamours for FX: The Chief Executive Officer of Vitafoam Plc, Taiwo Adeniyi, has called on the Federal Government to establish a special forex window for manufacturers.
Speaking to Nairametrics during an exclusive interview, Adeniyi explained that establishing a special forex window for manufacturers would make it easier to access dollars and ultimately encourage growth.
Bolt’s mass recruitment: Bolt announced that it has begun massive recruitment across its operation locations, including Nigeria. The massive recruitment is despite the global tech layoffs that have been happening since last year.
Nairametrics reported that a total of 326 positions will be filled across departments, including the recruitment of a Country Manager, Sales Manager and Operations Manager in Nigeria.
Chipper Cash’s layoffs: Meanwhile, Chipper Cash announced that it has laid off some staff. The company’s Vice President of Revenue, Stefano Pardi, who announced this, said the layoffs would affect employees in Nigeria, South Africa, Kenya, the UK, and other countries.
Note that this is the second round of layoffs carried out by Chipper Cash in less than three months. The fintech firm had earlier cut its workforce by 12.5% in December last year.
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