- Unity Bank Share Price Gains 31% on Renewed Demand by Investors
The share price of Unity Bank Plc rose 30.9 per cent last week due to renewed interest in the financial institution by investors.
This, followed the de-risking of its balance sheet and expectation of injection of fresh capital by foreign investors.
The stock appreciated from N0.71 to N0.93 per share due to renewed demand. Unity Bank Plc had in the previous week reported a loss of N14 billion for the year ended 2017 due to huge provision for bad loans.
Market operators said some investors have seen the de-risking of bank’s balance sheet as a positive development that will lead to better performance in the near future.
Analysts also noted that the disclosure by the Managing Director/CEO of Unity Bank Plc, Mrs. Tomi Somefun that the bank was on the verge of getting of new investors, has increased demand for the shares.
According to the bank, it successfully wrote off a total of N16 billion, being Goodwill that arose from legacy merger issues.
“This one-off de-risking strategy that has cleaned up the bank’s books impacted the bottom-line leading to a net loss of N14.2 billion,” it said.
Unity Bank explained that the ratio of non-performing loans standing at zero per cent, a clear indication of the management’s excellent risk assessment for the period.
Also, bank recently disclosed that it is on the verge of finalising a capital injection agreement with some foreign investors.
Somefun said the bank would soon finalise a memorandum of understanding (MoU) that would lead to the anticipated capital injection in the commercial bank.
“All I can say is that one of the parties is the second largest infrastructure finance institution in Asia. Even though we have closed the process, some of the parties we had engaged before are saying they want to invest, because the bank is now looking good.
“Two years ago, we were the one chasing these investors. But we have told them to wait until we close this deal and any other party that wants to join, we can talk under different arrangement.”
According to the Unity Bank boss, due diligence had been done on the prospective investors.
She pointed out that “what is still left is procedural or finalising that engagement.”
“And because the Central Bank of Nigeria has seen what we are doing and they appreciate the efforts we are making and we have been carrying them along.
Ecobank Nigeria Received N50 billion 10-Year Bilateral Subordinated Loan
Ecobank Nigeria announced it has received N50 billion 10-year subordinated Loan.
Adenike Laoye, Group Head, Corporate Communications, Ecobank Nigeria, disclosed this in a statement released through the Nigerian Stock Exchange.
The statement read in part, “The bilateral funding provides stable medium-term liquidity to the balance sheet of Ecobank Nigeria and positively improved its balance sheet ratios, especially the capital adequacy ratio by circa 300 basis points.
“The transaction proceeds would be deployed to support Micro, Small and Medium Scale Enterprises (“MSMEs”) and Small Corporates.”
Niger Insurance to Sell Property Worth N15bn in Recapitalisation Move
Niger Insurance Plc said it is working on a plan to sell off N15 billion worth of real estate and investment property to boost its cash flow and meet the liquidity requirements of the insurance industry.
Mr. Edwin Egbiti, the Managing Director of the company disclosed this during the company’s 2019 annual general meetings held virtually in Lagos recently.
He said, “Subsequent to the requisite approvals of the board on behalf of shareholders, a number of the company’s real estate and investment property valued at N15bn have been put on sale in order to improve liquidity/cash flows, ensure reserve adequacy and improve solvency margins.
“We are encouraged by the progress made so far, and confident that both capital restructuring and recapitalisation efforts will be successful in line with National Insurance Commission’s regulatory timelines.”
It added that Niger Insurance recognised that its people were the company’s most critical assets without whom its goals and plans would remain elusive.
AMCON Takes Over Inducon Nigeria’s Assets Over N1.3 Billion Debt
The Asset Management Corporation of Nigeria has taken over the assets of Dr. John Abebe, the Chief Promoter of Inducon Nigeria Limited over N1.3 billion debt.
According to a statement signed by the Head, Corporate Communications Department, AMCON, Jude Nwauzor, and titled ‘N1.3bn debt: AMCON takes over assets of Inducon Nigeria Limited’ the decision followed the order of Honourable Justice Aikawa of the Federal High Court, Lagos.
“In compliance with the enforcement order, AMCON at the weekend took effective possession of the property situate at Plot12, Block 108, Lekki Peninsula Residential Scheme, Lagos, through its debt recovery agent – Ogunsola Shonibare L.P.
“The court also ordered that the bank accounts of the company and its directors, Dr. John Abebe, Mr Olawole Fatimilehin and Ademola Buraimoh, be frozen pending the final determination of the suit.”
The asset management corporation said the case of Dr. John Abebe and Inducon Nigeria Limited started shortly after the loan was procured by AMCON in 2011 during the first phase of Eligible Bank Asset purchases from the defunct FinBank, Now FCMB.
Stock Market Bubble Fears Overblown, Micro-bubbles Are the Issues
Vitafoam Expands Net Asset per share by 54.3 Percent in 2020
Fixed Income N5 Trillion Maturing Security to Sustain Nigerian Stock Exchange
News3 weeks ago
Heartbroken American Mistress Displays Dangote’s Buttocks in a Viral Video
Crude Oil4 weeks ago
Crude Oil Rose to Almost $52 Per Barrel After Trump Signs Stimulus Package
News4 weeks ago
FCMB Group MD Links to Death of Tunde Thomas, Husband of Married Staff He Fathered Her Kids
Investment2 weeks ago
London Real Estate Company for African Investors Announces its Launch
Finance4 weeks ago
President Buhari Increases Npower Budget by N365 Billion
Technology4 weeks ago
Chinese Government Goes After Jack Ma and Empire
News4 weeks ago
Tunde Thomas: FCMB Commences Review Into Allegations of Unethical Behavior Against MD Nuru
Brands4 weeks ago
Prada’s Profits Drop by $219 Million, Sales in China Up by 60%