- First Aluminium Seeks Voluntary Delisting from NSE
First Aluminium Nigeria Plc says “the current illiquidity nature of the capital market” has rendered the primary corporate objective of its listing to raise capital and provide liquidity unattainable.
The company, in an explanatory note to shareholders, said it was seeking a voluntary delisting from the main board of the Nigerian Stock Exchange as there had been little or no trading activity on the shares held by the minority shareholders over the last seven years.
First Aluminium, which is one of the first Nigerian listed companies, has seen its share price stuck at 50 kobo for about six years between June 2011 and June 2017, and thereafter experienced further diminution both in share price and trading volumes.
The company’s daily average volume ranged between 2,815 to roughly 2,918 units during the period July 2017 to December 2018.
It said there was a significant fall in its average daily trading volumes to 2,918 units between July 2017 and June 2018 and a further decline to 2,816 units between July 2018 and December 2018.
The company said neither it nor any shareholder was benefitting from the continued listing on the NSE.
It said the rationalisation of operational expenses to support the business and to meet the needs of various stakeholders as the attendant cost required to comply with its listing requirements (including filing fees, penalties or sanctions) were not commensurate with the benefits to the company.
The statement read in part, “Shareholders are not benefitting from the continued listing as they are not getting exit opportunities and their investments have been locked up, thereby finding it difficult to dispose of their shareholding. Neither the company nor its shareholders have benefitted as the company’s shares continue to trade at a significant discount to the intrinsic value.
“The increasing competitive environment and the struggle to defend market share have resulted in market pressure to reduce price and this may significantly impact operating margin.
“The majority shareholders (with over 75 per cent shareholding) are the promoters of the transaction and the majority shareholders wish to offer other shareholders (the minority shareholders) the opportunity to either remain shareholders of the unlisted company or accept a consideration for their shares, which the majority shareholders are willing to purchase.”
According to First Aluminium, in line with NSE regulatory requirements for a voluntary delisting, an exit opportunity had been provided for shareholders that do not wish to be part of the delisted company.
It added that at the meeting of the board of directors of the company, which held on August 8, 2018, the board approved and resolved to recommend to the shareholders of the company the delisting of all the 2,110,359,242 units ordinary issued share capital of the company from the daily official list and from trading on the main board of the Exchange.
It said the delisting would afford the company to carry out an imminent corporate restructuring exercise to take advantage of emerging opportunities.
The statement said, “The company may consider re-listing in the future if the market conditions are favourable. The voluntary delisting will not occasion loss of business opportunities as there are similar unlisted aluminium companies that are commanding significant share of the aluminium market.
“Also, minority shareholders will not lose their shares because of the voluntary delisting and such shareholders may retain their membership in the unlisted company. However, through the voluntary delisting process, the minority shareholders who do not wish to be members of an unlisted company will have an opportunity to exit the company, in accordance with the rules of the NSE.”
It stated that the shareholders approved the proposal for the voluntary delisting via a poll vote at its annual general meeting on September 25, 2018.
BUA, Kainos Exploration to Drag Each Other to Court Over $20 Million Scandal
BUA Group on Monday threatened to drag Mr James Onyejekwe, the Managing Director of Kainos Exploration to court over a publication that claimed the Group was involved in a $20 million scandal.
BUA stated in a statement issued on Monday.
It stated that the publication engineered by Mr Onyejekwe was a “clear intent to impugn the integrity and reputation of BUA Group and its Chairman, Mr Abdul Samad Rabiu.”
“BUA takes its reputation seriously and we will continue to do everything to protect it from anyone and any entity who obstructs our mandate to conduct business in a proper, legal and socially-responsible manner.
“BUA will, therefore, utilise its legal and human resources to resist every campaign of defamation and distraction,” the statement further said.
The leading cement manufacturing company said its independent investigation showed Mr. Onyejekwe was behind the false story that went viral online.
“We have, therefore, instructed our legal team to immediately commence criminal defamation proceedings against the person of Mr James Onyejekwe who is the said originator of the malicious letter fraudulently attributed to Cavendish Petroleum against our person, with damages,” the statement seen by Investors King noted.
BUA explained that “We deem these actions necessary, in order to protect the name and reputation of BUA Group.”
“We see no reason why Mr James Onyejekwe of Kainos Exploration and Processing would single out BUA in a supposed business dispute which had no link to the BUA Group in its entirety.
“Therefore, BUA finds it absurd that Mr Onyejekwe or anyone else will decide to drag BUA into their issues and/or put out such a malicious and defamatory statement, fraudulently using the name of Cavendish/Mr Mai Deribe without recourse to the truth, facts, decorum or decency,” it added.
BUA Group described the story bordering on allegations of corruption as “false, malicious and spurious.”
Dangote Cement Emerges Best Performing Firm In Africa
The Kogi State Chamber of Commerce, Industry, Mines and Agriculture (KOCCIMA) has named the Dangote Cement Plc, Obajana Plant, as the best performing company in Africa.
The award was presented to the company in Lokoja at the weekend by the Deputy Governor of Kogi State, Chief Edward Onoja, who represented the State Governor, Alhaji Yahyah Adoza Bello, at the Annual General Meeting(AGM) of KOCCIMA.
Speaking at the occasion, the President of KOCCIMA, Mr. Victor Ibrahim, said the Dangote Cement emerged through a thorough screening process that involved 20 companies.
He said: “Our screening committee considered many criteria before Dangote Cement Plc was selected”.
According to him, the Chamber put into consideration Dangote Cement’s contributions to the state’s economy through Internally Generated Revenue(IGR), as well as its good relationship with KOCCIMA.
Mr. Ibrahim said another criterion that placed the Dangote Cement in good stead is that the company has been environmentally friendly.
“We’ve visited DCP Obajana Plant and we found it complying with global best practices when it comes to the environment. Your parking lot does not constitute any environmental danger. We also considered returns to investors, the welfare of staff, the 43km Obajana-Kabba concrete road, your good relationship with the host community and your positive image”.
He announced that the Chamber of Commerce was planning to host its Trade Fair by year-end and looking forward to collaborating with the Dangote Cement Plc.
The Deputy Governor Mr. Edward Onoja expressed the appreciation of the Kogi State Government, saying the contributions of KOCCIMA and the private sector were crucial to the development of the state.
Speaking to newsmen on the sideline of the event, representative of the Dangote Cement Plc Mr. Ademola Adeyemi said the company was elated and that the award will further spur it to continue its support to the state’s economy, KOCCIMA and Corporate Social Responsibility schemes.
MTN Appoints Chika Ekeji as Executive Lead for Strategy and Transformation
MTN Appoints Chika Ekeji, A Nigerian-American as Executive Lead for Strategy and Transformation
MTN Group has announced the appointment of Chika Ekeji, a Nigerian-American national as an executive to lead the strategy and transformation unit of the mobile network operator.
Chika has a Master of Engineering in Computer Science from Cornell University and an MBA from MIT.
He will be leaving from McKinsey & Company, where he led the West Africa Digital Practice and served telco, financial services, and public sector clients across Africa.
His appointment with Africa’s leading mobile operator will be effective on, 15th of March. In his new role, he will be based in SA.
“We are very pleased that Chika is joining us as we work to accelerate our strategic repositioning,” says MTN Group chief operating officer Jens Schulte-Bockum.
To support the execution of the repositioned strategy, Ekeji joins a group of other recent appointees, including the new group chief financial officer, Tsholofelo Molefe.
In recent weeks, MTN also made changes to the group’s regional structure and the executive committee.
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