Author Archives: Mr. Toyin Olaogun

Court orders shareholders meeting as Coronation Insurance considers delisting from NGX

The Federal High Court holden at Lagos has ordered a shareholders’ meeting for Coronation Insurance Plc as they consider delisting from NGX.

This was contained in the company’s notice to the Nigerian Exchange Limited

Excerpts from the statement signed by Company Secretary, Mary Agha read:

NOTICE IS HEREBY GIVEN that by an order of the Federal High Court (hereinafter referred to as the “Court”) dated 26 June 2023, made in the above matter, the Court has directed that a meeting of the holders of the fully paid-up ordinary shares of Coronation Insurance PLC (hereinafter referred to as “the “Company”) be convened to consider, and if thought fit, approving, (with or without modification), a scheme of arrangement proposed to be entered into between the Company and the holders of its fully paid ordinary shares (the “Scheme”).
A copy of the said Scheme and a copy of the explanatory statement that each shareholder of the Company is required to be furnished with under Section 715 of the Companies and Allied Matters Act can be found on pages 23 to 27 and pages 11 to 17 of the scheme document (the “Scheme Document”), respectively.
Words used in this notice shall have the same meaning as in the Scheme Document. The meeting of the shareholders of the Company will be held on the 24th day of August 2023 at 1:00 pm at Balmoral Hall, Federal Palace Hotel, Victoria Island, Lagos.”
The Court has also appointed the Chairman of the Board of Directors of the Company, Mr Mutiu Sunmonu, to act as Chairman of the said meeting and has directed the Chairman to report the results thereof to the Court.

The following resolutions will be proposed at the shareholders’ meeting and if thought fit passed as special resolutions of the Company:

“That the Scheme of Arrangement dated 26 June 2023, a printed copy of which has been submitted to the meeting and for identification subscribed by the Chairman, be and is hereby approved.
That to give effect to the Scheme in its original form or with, (or subject to), such modification, addition, and condition agreed between the Company and the holders of its fully paid ordinary shares and/or approved or imposed by the Federal High Court or the Securities and Exchange Commission:
That as consideration for the transfer of the Scheme Shares, each holder of the Scheme Shares shall receive the sum of 65 Kobo per share.
Nigerian Exchange Limited (the “NGX”) and the Central Securities Clearing System Plc (the “CSCS”) shall be notified and requested to terminate trading in the shares with effect from the Eligibility Date and no trading or transfer of the Company’s shares shall be registered after that date.
That conditional upon the Scheme becoming effective, the Company’s shares shall be de-listed from NGX on the Eligibility Date and following that date, all the share certificates representing the interests of the Scheme Shareholders Consideration (as defined in the Scheme Document) and in the case of dematerialized share certificates, all the shares of the Company that was lodged with the CSCS shall cease to be valid or to have any value”.
“That the Board of Directors of the Company be and is hereby authorized to take all necessary steps and to consent to any modifications of the Scheme of Arrangement that the Federal High Court or the Securities and Exchange Commission may deem fit to impose or approve, or that may otherwise be required.”

Recall that Coronation Insurance Plc received an offer from Coronation Capital (Mauritius) Limited to acquire shares of the company at 65kobo per share and subsequently delist from NGX.

The company said the offer price has been set at 65 Kobo per share, representing a 30% premium over the Company’s last traded price of 50 Kobo on August 12, 2021.

CBN restricts acquisition of stake in HoldCos

The Central Bank of Nigeria has restricted the acquisition of controlling stakes in financial holding companies in the country in its corporate governance guidelines.

The CBN said this in a circular to all commercial, merchant, non-interest and payment service banks, and financial holding companies titled ‘Corporate Governance Guidelines’, and signed by the Director, Financial Policy and Regulation Departmen, Chibuzo Efobi,.

The new guidelines stated that investors would need prior approval from the CBN before they could acquire majority stakes in holdcos.

In Section 19, which dealt with the protection of shareholders, the new guideline said, “Except where prior approval of the CBN is granted, no individual, group of individuals, their proxies or corporate entities shall own controlling interest in more than one FHC.

“Except with the prior written approval of the CBN, no FHC or any of its director, shareholder or agent shall enter into an agreement which results in: a change in the control of the FHC, the transfer of shareholding of five per cent and above in the FHC; and/or an increase in shareholding to five per cent or more in the FHC.

“Provided that CBN’s prior approval and No Objection shall be sought and obtained, before any acquisition of shares of an FHC by an investor (including through the capital market), that would result in equity holding of five per cent and above: the sale, disposal or transfer of the whole or any part of the business of the FHC; the acquisition or merger of the FHC; the reconstruction of the FHC; or the employment of a management agent, management by or transfer of its business to any such agent.”

The section also added that subsidiaries of an FHC were prohibited from acquiring shares in its FHC and/or other subsidiaries within the Group.

According to the CBN, the new rules were meant for commercial, merchant, non-interest, and payment services banks in Nigeria; and the Corporate Governance Guidelines for Financial Holding Companies in Nigeria.

Access Bank to acquire Standard Chartered’s subsidiaries in five countries

Access Bank Plc and Standard Chartered Bank have entered into agreements for the acquisition of Standard Chartered’s shareholding in its subsidiaries in Angola, Cameroon, The Gambia, and Sierra Leone, and its consumer, private and business banking business in Tanzania.

Each transaction remained subject to the approval of the respective local regulators and the banking regulator in Nigeria.

A statement said the announcement was made on Friday at Standard Chartered’s Headquarters in London, in the presence of senior representatives from both banks, and signed by, the Regional Chief Executive Officer, Africa & Middle East, Standard Chartered, Sunil Kaushal, and the Group Managing Director, Access Bank Plc, Roosevelt Ogbonna.

The statement said, “The agreement with Access for the sale of the bank’s business in Sub-Saharan Africa is in line with Standard Chartered’s global strategy, aimed at achieving operational efficiencies, reducing complexity, and driving scale.

“Access Bank will provide a full range of banking services and continuity for key stakeholders including employees and clients in the Standard Chartered businesses across the five aforementioned countries.

“Access and Standard Chartered Bank will work closely together in the coming months to ensure a seamless transition, with the transaction expected to be completed over the next 12 months.”

Commenting on the agreement, Kaushal, said, “Following on the announcement we made in April last year, the project is now substantially completed with the announcement for the sale of the five markets and the furtherance of a partnership with Access Bank.

“This strategic decision allows us to redirect resources within the AME region to other areas with significant growth potential, ultimately enabling us to better support our clients.

Commenting on the agreement, Ogbonna stated, “We are pleased to sign this agreement today and express our appreciation for being selected as the preferred partner to Standard Chartered Bank through this transaction, in which it is exiting four African markets and refocusing in one.

“As a distinguished regional and international bank with a rich heritage spanning over 150 years, Standard Chartered Bank has built a solid presence in these markets for over 100 years.”

FrieslandCampina Further Sinks OTC Stock Market by 0.63%

The NASD Over-the-Counter (OTC) Securities Exchange further declined by 0.63 per cent on Friday, the fourth straight session the OTC stock market closed in the negative region this week.

The loss happened after the price of FrieslandCampina Wamco Nigeria Plc at the bourse closed lower by N3.46 to finish at N71.50 per unit compared with Thursday’s closing price of N74.96 per unit.

Consequently, the market capitalisation of the alternative exchange shrank by N6.75 billion to settle at N1.066 trillion, in contrast to the preceding day’s N1.073 trillion, as the NASD Unlisted Securities Index (NSI) depreciated by 4.88 points to end the day at 770.74 points as against 775.77 points it recorded at the previous session.

During the trading day, there was a 94.4 per cent decline in the volume of securities traded by investors to 23,000 units compared with the 406,829 units transacted by market participants on Thursday.

Equally, there was an 88.3 per cent shortfall in the value of shares traded at the bourse on Friday to N1.8 million from the N15.4 million reported a day earlier.

These trades were executed in four deals yesterday compared with the 35 deals carried out in the preceding trading day, indicating a decline of 88.6 per cent.

The most traded stock by volume on a year-to-date basis remained Central Securities Clearing System (CSCS) Plc, which has transacted 1.1 billion units valued at N21.2 billion, Geo-Fluids retained the second place with the sale of 625.9 units valued at N1.1 billion, while Industrial and General Insurance (IGI) Plc was in third place with a turnover of 608.3 million units worth N48.1 million.

Also, CSCS Plc remained the most traded stock by value on a year-to-date basis with the sale of 1.1 billion units worth N21.2 billion, followed by VFD Group with a turnover of 18.9 million units valued at N4.2 billion, and Geo-Fluids Plc with 625.9 million units valued at N1.1 billion.

Champion Breweries’ market capitalisation rises to N32.9bn

The market capitalisation of Champion Breweries increased to N32.9bn in the 2022 financial year, as the company’s operating profit grew to N2.3bn during the same period.

This was disclosed by the company’s Chairman, Dr Elijah Akpan, at the 47th Annual General Meeting of the firm in Lagos.

Akpan said the success represents a remarkable increase and underscores the market’s recognition of the company’s value and potential.

“I’m pleased to inform you that Champion Breweries experienced significant growth in market capitalisation during 2022. At the end of the year, our market capitalisation stood at N32.9bn, compared to N18.4bn at the end of the previous year,” he said.

He said Champion Breweries’ operating profit experienced significant growth, rising to N2.3bn, with profit after tax increasing to N1.58 bn. This, according to Akpan, was attributable to the increase in revenue by an additional N2.7bn, compared to the previous year.

“This growth in revenue reflects the successful execution of business strategies, market demand, and potentially expanding customer base. It also indicates improved operational efficiency, effective cost management and demonstrates the company’s ability to generate sustainable profit and create value for its stakeholders.” Akpan stated.

Looking ahead, he said, “The recent fuel subsidy removal will have an adverse effect on consumer purchasing power. As the subsidy is removed, the price of PMS will increase, putting additional pressure on consumers’ budgets and potentially affecting their ability to spend on other goods and services. We will remain proactive in navigating any uncertainty and leveraging opportunities to drive sustainable growth and value for our shareholders,” he said.