CSCS Weakens Unlisted Securities Exchange by 0.13%

The NASD Over-the-Counter (OTC) Securities Exchange remained in the red zone on Tuesday after closing lower by 0.13 per cent due to a fall in the share price of Central Securities Clearing System (CSCS) Plc.

The stock went down by N1.50 to settle at N17.00 per unit compared with the preceding day’s closing value of N18.50 per unit.

This consequently weakened the market capitalisation of the unlisted securities exchange by N1.39 billion to N1.080 trillion from the N1.081 trillion posted a day earlier.

In the same vein, it deflated by NASD Unlisted Securities Index (NSI) by 1.01 points to wrap the session at 780.77 points compared with 781.78 points of the previous session.

Business Post reports that during the trading day, the price of 11 Plc recorded a jump of N16.94 to quote at N186.34 per unit versus Monday’s value of N169.40 per unit.

The activity chart showed that the volume of transactions shrank by 98.8 per cent to 101,299 units from the 8.5 million units traded in the previous trading session.

The value of shares transacted by the market participants increased by 83.4 per cent to N9.2 million from the N55.4 million published by the bourse at the previous session.

These transactions were carried out in 34 deals compared with the 55 deals executed in the preceding trading day, representing a decline of 38.2 per cent.

CSCS Plc remained the most traded stock by volume on a year-to-date basis with a turnover of 1.1 billion units valued at N21.2 billion, Geo-Fluids stood in second place with 625.8 units worth N1.1 billion, while Industrial and General Insurance (IGI) Plc was in third place with 608.3 million units valued at N48.1 million.

Also, CSCS Plc was the most traded stock by value on a year-to-date basis with the sale of 1.1 billion units worth N21.2 billion, VFD Group occupied the second spot with a turnover of 18.9 million units valued at N4.2 billion, while Geo-Fluids Plc was in third place with 625.8 million units valued at N1.1 billion.

Index Rallies by 1.31% as Investors Lock More Funds in Local Equities

A 1.31 per cent growth was printed by the Nigerian Exchange (NGX) Limited on Tuesday on the back of sustained bargain-hunting as investors locked more funds in local stocks.

Traders shrugged off the stubborn inflation and a further upward adjustment to the price of premium motor spirit (PMS), otherwise known as petrol, by the Nigerian National Petroleum Company (NNPC) Limited yesterday.

According to the latest development, the product will now be dispensed at NNPC retail stations at N617 per litre, a move officials of the company said was necessitated by prevailing market conditions.

Despite the uproar generated by the increase in pump price, the stock market closed higher as traders looked to earn more from the asset class.

The buying pressure popped the All-Share Index (ASI) higher by 823.37 points to 63,766.72 points from 62,943.35 points and inflated the market capitalisation by N449 billion to N34.722 trillion from N34.273 trillion.

Investors tried to book profit in banking equities, but this did not affect the general outcome of the market. The banking index shed 0.17 per cent but was offset by the gains posted by others.

At the close of business, the insurance sector grew by 4.25 per cent, the industrial goods counter appreciated by 3.58 per cent, the consumer goods industry rose by 0.66 per cent, and the energy index expanded by 0.56 per cent.

A total of 50 shares appreciated in price during the session, while 23 stocks depreciated in value, indicating a positive market breadth index and a strong investor sentiment.

Honeywell Flour, NEM Insurance, and NPF Microfinance Bank improved by 10.00 per cent to N3.30, N5.94, and N1.87, respectively, while Eterna gained 9.92 per cent to settle at N26.05, and PZ Cussons increased by 9.88 per cent to N17.80.

On the other side of the coin, Japaul lost 10.00 per cent to quote at 81 Kobo, FTN Cocoa depreciated by 9.84 per cent to N2.29, Courteville decreased by 8.64 per cent to 74 Kobo, Sovereign Trust Insurance dropped 8.16 per cent to 45 Kobo, and Secure Electronic Technology shed 8.11 per cent to 34 Kobo.

Yesterday, traders bought and sold 868.8 million shares worth N43.8 billion in 8,970 deals compared with the 710.0 million shares valued at N13.8 billion traded in 8,979 deals on Monday, implying a decline in the number of deals by 0.10 per cent, and an increase in the trading volume and value by 22.37 per cent and 210.15 per cent apiece.

FCMB traded 153.9 million stocks valued at N956.1 million, Japaul transacted 110.5 million equities worth N91.0 million, Dangote Cement exchanged 104.9 million shares valued at N35.8 billion, Access Holdings sold 49.5 million stocks for N849.2 million, and Fidelity Bank traded 41.9 million equities valued at N312.6 million.

Capital Hotels Plc to delist from NGX as company explores strategic opportunities

Capital Hotels Plc has disclosed a delisting of all of its shares from the main board of the Nigerian Exchange (NGX).

In an explanatory statement sent to Nigeria Exchange Limited, the company said the purpose of delisting is to enable the company to explore strategic opportunities.

An excerpt from the statement reads:

“This letter is issued given the Annual General Meeting (AGM) to be held on the 17th May 2023 at Abuja Continental Hotel, Abuja, to propose for approval amongst other business of the day, the delisting of the total of 3,160,775,510 (Three Billion, One Hundred and Sixty Million, Seven Hundred and Seventy-Five Thousand and Five Hundred and Ten) ordinary shares of Capital Hotel Plc listed on the Main Board of The Nigerian Exchange Limited (the “Transaction”).

The purpose of delisting is to enable the Company to explore strategic opportunities, alliances, and collaborations that can bolster earnings and/or provide synergized benefits with little or no regulatory obligations.”
Conditions for delisting
The company noted that the final decision to delist from the NGX is subject to final resolution from the board of directors after the shareholders had voted in favor of the delisting during the AGM held on 17th May 2023.

Once the transaction is approved by the NGX with the Securities and SEC duly notified, the shares of the company shall be removed from the daily official list of the NGX.

More excerpts from the letter read:

The interest of dissenting shareholders shall be bought by the Majority Shareholder for consideration of ₦5 (Five Naira) per each ordinary share, being the highest price at which the company shares have traded, six (6) months preceding the notice of the AGM at which the resolution to delist will be deliberated, as provided by the rules of the Nigerian Exchange Limited (“NGX”).
According to the audited financial statement of the company for the year ended 31st December 2022, 22 Hospitality Limited is the majority shareholder with 66.13% holding.

The company also noted that the delisting won’t have any impact on the existing employment contracts of its staff as well as the composition of the Board of Directors of the company.

The delisting of shares of Capital Hotels Plc will take effect from August 31, 2023.

Fidelity Bank Plc announces plans to raise capital via public offer

Fidelity Bank Plc has announced plans to raise capital via a combination of a public offer and a rights issue.

The tier 2 bank made this announcement via a press release on the NGX.

At the current share price of N7.3, the sale could fetch the bank fresh capital of about N96.3 billion.

Fidelity Bank says it is to raise its share capital to N22.60 billion as the company looks to explore strategic growth.

This was disclosed in a statement signed by Company Secretary Ezinwa Unuigboje which was sent to Nigeria Exchange Limited.

An excerpt from the statement reads:

That the issued share capital of the Company currently N16,000,000,000.00 (Sixteen Billion Naira) made up of 32,000,000,000 Ordinary Shares of N0.50 each, be increased up to N22,600,000,00.00 (Twenty-two Billion, Six Hundred Million Naira) by the creation of up to 13,200,000,000 (Thirteen Billion, and Two Hundred Million) additional Ordinary Shares of N0.50 each.That the Company undertakes a capital raising exercise via a Public Offer for up to 10,000,000,000 Ordinary Shares and Rights Issue of up to 3,200,000,000 Ordinary Shares representing 1 (one) new share for every ten (10) shares held, to new and existing shareholders respectively.

That the Board of Directors of the Company be and is hereby authorised to allot the shares issued in accordance with resolution (2) above, which shall rank pari-passu with the Company’s existing issued shares, subject to the receipt of relevant regulatory approvals.

That the Board of Directors be and is hereby authorized to perform all such lawful acts that are necessary to give effect to the above-listed resolutions including but not limited to ensuring compliance with all regulatory procedures and requirements, obtaining all required approvals and filing within time, all regulatory returns in relation to the above resolutions.”

Exploring Strategic Growth
The company noted that the decision to raise share capital is in view of strategic growth as the company aims for increased profitability, expansion (domestic and international) and enhancement of its digital capabilities.

The proposed resolutions are aimed at ensuring that the company can take advantage of emerging business opportunities and secure long-term profitability and competitive advantage while ensuring increased shareholder value.

The share capital increase is subject to adoption at the company’s Extra Ordinary General meeting are being presented for shareholders’ approval.

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.

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