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Ashaka Cement to Delist From NSE

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Ashaka Cement Factory
  • Ashaka Cement to Delist From NSE

The Directors of AshakaCem Plc have passed a resolution to propose to its shareholders, a voluntary delisting of the company from the floor of the Nigerian Stock Exchange (NSE), where shares, bonds or securities are bought and sold.

Delisting means the removal of the listed stock from the exchange, when a company can no longer meet the requirements for listing.

At a meeting on November 16th, the board agreed that the resolution will be presented to shareholders of AshakaCem for consideration at an Extraordinary General Meeting (EGM) slated for Monday (today) December 21, 2016.

Stating reasons for the delisting, the firm explained that at the conclusion of the Mandatory Tender Offer (MTO), based on approvals, it offered to purchase some or all of shareholders’ shares for a price in 2015, its free float, the proportion of shares traded in the stock market, fell to 17.54 per cent.

This further reduced the minimum acceptable condition to 15.03 per cent at the conclusion of the Voluntary Tender Offer (VTO), in September 2016.

Public float is the amount of shares a company can trade on the Exchange, which is regulated at 20 per cent. But if the public quote is less than 20 per cent, the firm is expected to make adjustments to beef up the figure or its shares would delisted from the Exchange.

“Hence, AshakaCem has been unable to meet the NSE Rule requirement for every publicly listed entity to have a ‘Free Float’ (tradable shares) of not less than 20 per cent on the Exchange.

“Through the Voluntary Delisting of AshakaCem, the Directors of the Company will be shielding the Company from any enforcement action that the Exchange may effect, for example by way of a Regulatory Delisting in light of the outstanding free float deficiency.

“Furthermore, through the voluntary delisting process, the company will be providing an opportunity to minority shareholders who do not wish to be members of an unlisted company to exit the company and therefore be shielded from being members of an unlisted company.”

Upon conclusion of the EGM, the company added that shareholders of AshakaCem may exit the firm prior to the delisting by either trading their shares on the floor of the exchange through their nominated stockbroker or accept exit terms.

The terms were as offered for the MTO and the VTO – 202 shares of AshakaCem for 57 shares of Lafarge Africa, a cement and allied products manufacturer, plus a cash consideration of N2.00 per every AshakaCem share, while shareholders will have 90 days period post the EGM to exercise these options.

According to the company, under the proposed delisting and settlement of consideration, minority shareholders in AshakaCem will be offered benefits, including revenue diversification by geography as a result of Lafarge Africa’s operations in Nigeria, South Africa and Ghana.

This is in addition to revenue diversification by plant location due to wide spread operations across the North East, South East and South West regions of Nigeria.

Reacting to the development, the President, Renaissance Shareholders Association, Olufemi Timothy, described the decision as a “welcome development”, urging AshakaCem investors to exchange their shares for Lafarge Africa. “It is normal since the public float of AshakaCem is less than 20 per cent. The company must delist accordingly but the right of existing shareholders subsists.

“My advice is that the remaining minority shareholders in Ashaka Cement should exchange their shares for Lafarge Africa and enjoy the benefits. Five shares of Lafarge to 202 shares of Ashaka plus N2 cash per share. They should take advantage.”

The National Coordinator, Progressive shareholders Association, Boniface Okezie, said it is not new for a company to delist from the exchange if they do not have the required percentage to still remain in the market.

“We the shareholders already know that Ashaka will do that after the tender offer carried out last year approved by the shareholders. Lafargeholcim already have majority shareholding in Ashaka, so any other per cent left is insignificant for it to remain listed.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Crude Oil

Oil Slips With Energy Prices in Europe Halts Record Rally

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Crude Oil - Investors King

Oil dipped toward $72 a barrel in New York after prices of energy commodities in Europe halted a record-breaking run.

West Texas Intermediate futures fell 0.6%, having reached the highest intraday level since early August on Wednesday. A rally in European gas and power prices to unprecedented levels was set to end as industries were starting to curb consumption. The surge in energy rates could temporarily boost diesel demand by as much as 2 million barrels a day as consumers switch fuels, according to Citigroup Inc.

Still, the bullish signals for oil are continuing to increase. U.S. crude inventories dropped by more than 6 million barrels last week to a two-year low, according to government figures, as coronavirus vaccination programs permit economies to reopen. Chevron Corp. Chief Executive Officer Mike Wirth warned that the world is facing high energy prices for the foreseeable future.

The investor optimism is showing up in key oil time spreads widening. Trading of bullish Brent options also surged to a two-month high on Wednesday.

Prices have been pushed higher in recent days “by supply outages combined with expectations of switching from gas to oil in the power sector,” said Helge Andre Martinsen, a senior oil market analyst at DNB Bank ASA. “We still believe in softer prices toward year-end and early next year as curtailed production returns and OPEC+ continues to increase production.”

Strong prices for gas, liquefied natural gas and oil are expected to last “for a while” as producers resist the urge to drill again, Chevron’s Wirth told Bloomberg News. Norway’s Equinor ASA said Thursday it also expects European gas prices to remain high over winter.

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Energy

Fuel Scarcity: Petrol Sells N220 Per Litre in Nsukka

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petrol scarcity Nigeria

Premium Motor Spirit, otherwise called petrol, now sells for between N200 and N220 per liter at the independent marketers’ service stations in Nsukka, Enugu State.

The News Agency of Nigeria is reporting the hike in the price against the official pump price of N162 per liter.

It said it started about a fortnight ago due to the scarcity of the commodity in the town and its environs.

Some residents of the town expressed deep worry over the development in separate interviews with NAN on Wednesday.

A civil servant, Stephen Ozioko, said the situation had further compounded the economic difficulties in the area.

Ozioko said many private car owners had been compelled to park their vehicles at home and move around in public transport.

He said: “Since the scarcity started, I decided to park my car and take public transport to the office and back home. N220 per liter is exorbitant and I cannot afford it considering my salary as a civil servant. I shall continue to use public transport until the situation returns to normal.”

A building material dealer, Timothy Ngwu, said the development had also led to an increase in transport fare in the area.

Ngwu said: “Some people now trek from Nsukka Old Park to Odenigbo Roundabout because of the 100 percent hike in fares from N50 to N100 by tricycle.

“Before now, transport fare from Nsukka to Enugu was N500, but transporters now charge between N800 and N1000.”

Also, a commuter bus driver, Victor Ogbonna, described the scarcity and hike in the price of petrol as “unfortunate and an ugly development”.

Ogbonna added: “Today, only a few filling stations are selling the commodity in Nsukka town, while others are shut.”

He alleged that some filling stations, which claimed to be out-of-stock, were selling to black marketers at night.

He said: “This is why black marketers have sprung up everywhere in the town, selling the commodity for about N300 per liter.”

NAN reports that virtually all the major marketers in the area have stopped the sale of petrol, claiming to be out-of-stock.

The people called on the government to urgently intervene in order to bring the situation under control and also put an end to its harsh economic effects on the messes.

NAN.

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Energy

DPR Targets N3.2T Revenue by Year-End

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Department of Petroleum Resources (DPR)-Investors king

Nigeria’s Department of Petroleum Resources (DPR) will hit the N3.2 trillion revenue target by December 2021, according to its Director/ Chief Executive Officer, Mr Sarki Auwalu.

Auwalu made the disclosure when he led a delegation of the DPR management team to the Executive Secretary of Petroleum Technology Development Fund (PTDF), Mr Bello Gusau, in Abuja on Wednesday.

He said that 70 percent of the revenue projection had already been met. “Last year, we exceed our revenue budget. We were given N1.5 trillion but we were able to generate N2.7trillion.

“This year, our revenue budget was N3.2 trillion. By the end of August 2021, we have generated up to 70 per cent.

“So, we with September, October, November and December, it is only the 30 per cent that we will work over,’’ he said

He noted that the government took advantage of fiscal terms within the old and new legislation, thereby creating a level of increased signature bonuses.

“We reorganise the work programme that is normally being done in the DPR to key into the new operational structure as we see it in the bill, now an act.

“That programme is being handled by the planning and strategic business unit as against what we use to have because the entire work programme is supposed to show not only technical but also commercial and viability of oil fields and to guarantee the return on investment for investors.

“We have also created an economic value and benchmarking unit to key into the new fiscal provisions of the PIA,’’ he said.

Commenting on capacity, Auwalu said the country stands at the advantage of exporting skills to emerging oil and gas countries across Africa with proper implementation of the newly passed Petroleum Industry Act.

This, he said, the DPR was ready to partner with the Fund to continue to build capacity in the oil and gas sector

He noted that the Federal Government was determined to create leeway that would encourage investors and drastically improve the nation’s petroleum industry.

He further noted that no fewer than 300 legal battles in the oil and gas industry in Nigeria, which had been stalled for the past 20 years in courts, had been resolved through alternative dispute resolution.

According to Auwalu, the DPR is strategising well to ensure effective implementation of the PIA.

Responding, Gusau commended the DPR for enabling the industry and enhancing business activities in the oil and gas sector.

He said that DPR remained the head of the oil and gas industry in Nigeria adding that the Fund was grateful to benefit from the wealth of ideas from DPR.

“The last time we visited, we had a good discussion and issues raised are being implemented like tracking the inflow of funds in signature bonus accounts.

“We extended the meeting and involved ministry of Finance, Accountant General office and even the Central Bank of Nigeria (CBN).

“Sitting at field development plans and attending significant meetings, helped us to know where and what the industry is trying to do and it also helps to inform our decisions in training and capacity plans,’’ he said

He urged the DPR to continue on its effort to ensure an efficient and productive petroleum industry in Nigeria

He assured collaboration with all as the head of the implementation committee of the Petroleum Industry Act. (NAN)

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