- Cement, Healthcare Companies to Raise N240b New Capital
The country’s largest cement and healthcare manufacturing companies are planning to raise N240 billion new capital to grow their businesses.
The two largest cement companies – Dangote Cement Plc and Lafarge Africa Plc – and two leading healthcare companies – Fidson Healthcare Plc and May & Baker Nigeria Plc – have launched the new capital raisers. They are expected to conclude the supplementary issue by the fourth quarter of the year.
Dangote Cement, Nigeria’s most capitalised quoted company and Africa’s largest cement producer, is raising N150 billion in debt capital.
The company has concluded the first tranche of the N150billion, raising N50 billion in new debt capital.Dangote Cement issued commercial papers of 180 days and 270 days’tenors with effective yields of 13.21 per cent and 13.96 per cent.
According to the company, the net proceeds from the deal would be used to finance capital expenditure, working capital and corporate purposes.
Lafarge Africa Board has also approved a right issue of up to N82 billion to reduce the company’s leverage as well as strengthen its profitability.
Earlier, Lafarge Africa shareholders approved a resolution authorising the company to raise more capital of up to N100 billion as the cement group continues to optimise its balance sheet.
Lafarge Cement shareholders mandated the Board to raise more capital through an offer of debt or equity or a combination of the two from local or international capital market. Last year, the cement company raised N131.6 billion from a rights issue, which was oversubscribed.
Fidson Healthcare is raising N4.5 billion new capital from new ordinary shares to its shareholders.
The Nigerian Stock Exchange (NSE) has approved the rights issue, paving the way for the company to open application list for the offer.
Fidson Healthcare will issue 900 million ordinary shares of 50 kobo each to shareholders at N5 per share. The rights issue will be pre-allotted on the basis of three new ordinary shares for every five ordinary shares held as at the close of business on July 5.
Shareholders of Fidson Healthcare last year approved a plan to raise N6 billion to boost its working capital and support its expansion. Shareholders had authorised the board of directors of Fidson Healthcare to “raise further capital of up to N6 billion through an offer whether by way of public offering, rights issue, private and special placement of shares”.
Shareholders also authorised the directors to absorb oversubscription and to convert existing loans due to any person from the company towards payment for any rights or shares subscribed for. Shareholders increased the authorised share capital from N1.2 billion to N1.5 billion by the creating more 600 million shares of 50 kobo each.
Fidson Healthcare Plc Chairman, Mr. Felix Ohiwerei, said the new capital would be used to boost working capital that had been negatively impacted by the depreciation of Naira.
He noted that the company’s new factory had come on stream and that it needed more capital to realise the full potential and utilise the new factory to full capacity.
Sources confirmed that May & Baker Nigeria has advanced discussions on its much-awaited rights issue.
Its shareholders earlier this year voted to increase the company’s share capital from N1.9 billion of 3.8 billion ordinary shares of 50 kobo each to N3 billion of six billion ordinary shares of 50 kobo each. It has a subsisting shareholders’ approval to raise N3.2 billion.
Earlier this year, May & Baker Nigeria Chairman Lt.-Gen. Theophilus Danjuma (rtd), told shareholders that company’s directors believe that the time was right to raise the funds to enable the company harness new opportunities.
“Therefore, our rights issue will soon open and I hope shareholders will take up their rights to support our company in achieving its new vision. We shall all reap the rewards in the immediate future and beyond,” Danjuma said.
COVID-19: CBN Extends Loan Repayment by Another One Year
Central Bank Extends One-Year Moratorium by 12 Months
The Central Bank of Nigeria (CBN) has extended the repayment of its discounted interest rate on intervention facility by another one-year following the expiration of the first 12 months moratorium approved on March 1, 2020.
The apex bank stated in a circular titled ‘Re: Regulatory forbearance for the restructuring of credit facilities of other financial institutions impacted by COVID-19’ and released on Wednesday to all financial institutions.
In the circular signed by Kelvin Amugo, the Director, Financial Policy and Regulation Department, CBN, the apex bank said the role-over of the moratorium on the facilities would be considered on a case by case basis.
The circular read, “The Central Bank of Nigeria reduced the interest rates on the CBN intervention facilities from nine per cent to five per cent per annum for one year effective March 1, 2020, as part of measures to mitigate the negative impact of COVID-19 pandemic on the Nigerian economy.
“Credit facilities, availed through participating banks and OFIs, were also granted a one-year moratorium on all principal payments with effect from March 1, 2020.
“Following the expiration of the above timelines, the CBN hereby approves as follows:
“The extension by another 12 months to February 28, 2022 of the discounted interest rate for the CBN intervention facilities.
“The role-over of the moratorium on the above facilities shall be considered on a case by case basis.”
It would be recalled that the apex bank reduced the interest rate on its intervention facility from nine percent to five percent and approved a 12-month moratorium in March 2020 to ease the negative impact of COVID-19 on businesses.
To further deepen economic recovery and stimulate growth, the apex bank has extended the one year-moratorium until February 28, 2022.
MTN Nigeria Generates N1.35 Trillion in Revenue in 2020
MTN Nigeria Grows Revenue by 15.1 Percent from N1.169 Trillion in 2019 to N1.35 Trillion in 2020
Despite the COVID-19 pandemic and challenging business environment, MTN Nigeria realised N1.346 trillion in revenue in the financial year ended December 31, 2020.
The leading telecommunications giant grew revenue by 15.1 percent from N1.169 trillion posted in the same period of 2019.
Operating profit surprisingly jumped by 8.5 percent from N393.225 billion in 2019 to N426.713 billion in 2020.
This, the telecom giant attributed to the surge in finance costs due to increased borrowings from N413 billion in 2019 to N521 billion in 2020.
MTN Nigeria further stated that the increase in finance costs was the reason for the decline in growth of profit before tax to 2.6 percent.
MTN Nigeria grew profit before tax by 2.6 percent to N298.874 billion, up from N291.277 billion filed in the corresponding period of 2019.
The company posted N205.214 billion profit for the year, a 0.9 percent increase from N203.283 billion recorded in the 2019 financial year.
Share capital remained unchanged at N407 million. While Total equity increased by 22.3 percent from N145.857 billion in 2019 to N178.386 billion in 2020.
MTN Nigeria’s market price per share increased by 61.8 percent from N105 to N169.90.
While market capitalisation as at year-end also expanded by 61.8 percent to N3.458 trillion, up from N2.137 trillion.
The number of shares issued and fully paid as at year-end stood at 20.354 million.
MTN Nigeria margins were affected by Naira devaluations and capital expenditure due to the new 4G network coverage roll-out.
“Margins were adversely affected by the effect of naira devaluation and expenses associated with new sites’ roll-out to boost 4G network coverage in FY’20.
“On the former, we note that MTNN expanded the scope of its service agreement with IHS Holding Limited and changed the reference rate for converting USD tower expenses to NAFEX (vs CBN’s official rate previously). Thus, over the full-year period, the company’s operating margin contracted by 1.9 ppts YoY to 31.7%,” CardinalStone stated in its latest report.
Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020
Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020
Nestle Nigeria, a leading food and beverage company, has declared a final dividend of N35.50k per 50 kobo ordinary share for the year ended December 31, 2020.
The beverage company said N24.50k of the amount declared was from the after-tax profit of 2020 and N5 and N6 were from the after-tax retained earnings of the years ended December 2019 and 2018, respectively.
Nestle Nigeria stated that the amount declared is subject to appropriate withholding tax and approval at the Annual General Meeting of shareholders.
It also noted that payment will be made only to shareholders whose names appear in the Register of Members as at the close of business on 21 May 2021.
Dividends will be paid electronically to shareholders whose names appear on the Register of Members as at 21 May 2021, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.
Shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s E-Dividend Mandate Activation Form, which is also available on their website: www.gtlregistrars.com, complete and submit to the Registrar or their respective Banks.
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